When hosting a party, there is a lot to think about what food you will serve, how to decorate, and where to set up your speakers. One lesser known concern you should consider is the responsibility of the social host, the potential responsibility for the harm caused by the disabled behavior of the guests. No one expects their parties to be turned or out of control, but it is important to be aware of their responsibilities as hosts before sending out those invitations.
Hosting has a string
Social host liability refers to the legal responsibility (both criminal and civil) to provide alcohol and drugs to guests who later harm themselves or others. Criminal charges can occur when involving the drinking of minors or reckless behaviour, but civil litigation is more common and potentially expensive.
Currently, 43 states and Washington, DC have enacted the Social Host Responsibility Act, often referred to as the Social Host DRAM Act. These laws vary from state to state, but focus on when minors provide alcohol or when guests are visibly disabled and are allowed to consume or leave the event.
Importantly, homeowner and tenant insurance contracts usually cover civil liability rather than criminal liability. This means that if a host is sued for negligence, their policies may meet that limit, but that does not cover illegal behaviour such as minor service or violation of the cannabis law.
Unlike those that manage commercial facilities such as bars and restaurants, these laws usually apply to individuals who hold events at home or rental facilities.
Prom season and parental responsibility
As we enter the prom season, some parents may consider hosting a teenage party. The goal may be to keep teens from drinking secretly and driving impaired people out of driving. These concerns may come from a place of caution, but providing alcohol to minors is illegal in all states, even at home, and can expose parents to serious legal and financial consequences.
In many states, adults who allow minors to drink alcohol on their property can face both criminal and civil liability, even if they don’t supply alcohol themselves. While 31 states allow civil liability for damages or injuries caused by minor drinkers, adults hosting parties with minor drinkers may face legal consequences, 30 states place criminal penalties against adults owned by such parties in their homes or premises.
The host may be liable for minor guests to be injured, harmed others, or damaged property. This legal risk goes beyond typical concerns about driving or physical accidents.
In one powerful example, East Coast state parents held post-prom parties in their basements, believing that teenagers were drinking safer under supervision. They gathered car keys through the door and stayed at home during the event. Some teenagers brought pure grain alcohol and combined it with prescription sedatives stolen from another household. One teenager died in combination. The parents who organized the rally were later accused of illegal death, and the court found that they were unable to properly supervise the event. Their decision to allow parties to lack sufficient political parties and surveillance to raise legal liability without providing material was sufficient.
One party, two lawsuits
Many hosts assume that if something goes wrong at a party, only the drunk person is responsible. However, social host liability laws and negligence claims often take responsibility for both adults and hosts and, in some cases, guests when facing lawsuits from multiple directions.
You can sue:
- A third party injured by the guest’s actions, just as someone was hurt in a car accident caused by the guest.
- Drunk guests are injured on your property or suffer harm related to substance use at the event. In the above postprom example, lawsuits filed by the parents of drunken teens fall under this category.
Disabled guests who travel at your event, fall and later cause car accidents may claim that you have allowed them to over-employ the substance. In many cases, the plaintiff’s lawyer will allege negligence and argue that you have failed to take reasonable steps to prevent foreseeable harm. Courts often apply the “reasonable person” standard. We determined whether the host knew or should have known that an injury could have occurred and did enough to prevent the injury.
A negligent host can face claims that it will escalate quickly in a rapid cost, such as:
| Medical expenses | It ranges from hundreds to over $100,000 |
| Property damage | Depending on what is damaged, this can range from hundreds to thousands of dollars |
| Loss of wages | Depending on how long the claimant is off work, this can easily reach tens of thousands of dollars |
| Pain and suffering | This is where the biggest costs can come. Determining the value here depends on the type of injury. |
| Legal and court costs | Depending on the type of injury, legal costs can easily exceed six figures. |
Insurance has restrictions – your financial obligation may not be
Even if your homeowner or tenant insurance includes personal liability coverage, the insurance clearly states that the insurance company will not pay anything other than the coverage limit. Therefore, if the injured party’s medical costs are $500,000 and the policy limit is $100,000, you are borrowing $400,000. In other words, you are personally liable for unpaid medical bills. If you have umbrella insurance, if you have it, it may help fill this gap if the court is awarded beyond the limits of your policy.
And if the insurance company deems your actions to be severely negligent or illegal, such as ignoring clear signs of disability or allowing minors to drink alcohol, they may completely deny the claim to cover all damages and legal costs. Depending on the injury, legal costs alone can go well over six figures. For the East Coast Prom Party, defense spending was well above $150,000 for discoveries and experts. The lawsuit bill has now reached $300,000.
How to minimize the risk of being a host
All these factors can be frightening, but taking a responsible hosting step can reduce exposure.
- Know your state’s laws: Host legal outcomes and liability also vary by state, county, and city. Understanding your state and local laws before the parties begin will help you stay safe and avoid litigation.
- Check coverage types and limits: Not all household or umbrella insurance policies cover the same thing. Read the policy documents thoroughly and ask your insurance agent if you have any questions about coverage.
- Monitors alcohol consumption and provides plenty of food: Instead of making all your drinks available at once, replenishing alcohol availability when necessary. Making food available can help slow down addiction.
- Close dangerous areas of your home: Consider closing areas such as pools, steep stairs, and sudden shelves.
