If your Super Bowl Sunday plans include throwing a party, be sure you have adequate insurance in the event of an injury claim by a guest. A study sponsored by an independent agents’ branding campaign surveyed adults about hosting social gatherings and found many hosts lack extra liability protection.
The researchers polled 1,009 adults and estimated that of roughly 28.5 million Americans planning to host parties at home, about 21 million do not carry a Personal Umbrella insurance policy, leaving them vulnerable to lawsuits that could cause serious financial harm. Another seven million respondents said they didn’t know what coverage they have.
The importance of proper coverage is high because in many states hosts can be held legally responsible when guests drink, drive, and cause accidents. Although 53% of those surveyed said a host should be held responsible in such cases, most have not taken steps to protect themselves. Large jury awards and health care costs can easily exceed the liability limits of a typical homeowner or auto policy; a supplemental umbrella policy can help close that gap. If you own a boat, consider additional guidance such as Insurance Considerations for Super Bowl Parties and Boat Ownership.
Before hosting, review your policies and state host-liability rules and confirm you have appropriate limits; for more on homeowners coverage see Home Buyers: Make Securing Homeowners Insurance a Top Priority. If you’re unsure what you need, talk to an agent.
Recommendations
- Discuss your insurance coverage with an insurance professional before hosting a party to understand your state’s host liability rules and to confirm adequate limits.
- Limit invited guests to people you know.
- Host the party at a licensed restaurant or bar rather than in a home or office when possible.
- Provide filling food and nonalcoholic beverage options.
- Schedule entertainment or activities that encourage guests to socialize away from drinking.
- Arrange transportation or overnight accommodations for guests who should not drive.
- Stop serving alcohol at least one hour before the party ends.
- Do not serve guests who are visibly intoxicated.
- Consider hiring an off-duty police officer or security professional to monitor guests’ sobriety discreetly and handle alcohol-related problems as guests leave.
Frequently Asked Questions
What is a Personal Umbrella policy?
A Personal Umbrella policy provides additional liability coverage above the limits of your homeowner and auto policies to help protect your assets if you are sued for damages.
When should I buy an umbrella policy?
Consider an umbrella policy if you host gatherings, have significant assets, or face higher liability exposure from activities such as owning a pool or a recreational boat.
Will my homeowner or auto policy cover a guest’s injuries?
Homeowner and auto policies offer liability coverage, but large medical bills or jury awards can exceed those limits, which is why supplemental umbrella coverage is often recommended.
What practical steps reduce host liability at a party?
Limit attendance to known guests, provide food and nonalcoholic drinks, arrange safe transportation, stop alcohol service before the end of the event, and avoid serving visibly intoxicated guests.