It’s a night of tricks and treats, but for homeowners, Halloween is also a night of increased liability exposures. As a person’s primary contact for insurance information and advice, producers need to make sure clients know what they’re facing this year beyond a few trick-or-treaters.
For Loretta Worters, spokesperson for the Insurance Information Institute, the biggest liabilities clients face are connected with Halloween parties.
“Social host liability, the legal term for the criminal and civil responsibility of a person who furnishes liquor to a guest, can have a serious impact on party throwers,” Worters said. “Anyone hosting a Halloween party should take steps to limit their liquor liability and make sure they have the proper insurance.”
The proper insurance is typically homeowners or renters liability, though Worters notes that some policies may not cover civil judgment if party throwers are charged criminally.
This is especially true if alcohol is served to under-age party-goers. While most people are aware that furnishing alcohol to minors is illegal, a poll from the American Medical Association shows that the most common sources of alcohol for young people are adults over the age of 21.
Additionally, most states now hold anyone over the age of 16 responsible for alcohol-fueled accidents caused by party guests. This makes safety advice vital, as most homeowners policies won’t cover such extensive damages.
“Talk with your insurance agent about your liability insurance coverage and any exclusions, conditions, or limitations your policy might have for this kind of risk,” Worters said. “Appropriate liability insurance coverage is necessary, but your insurance may not be enough to cover a judgment against you as a social host.”
Halloween candles or decorations, injuries to trick-or-treaters on client property, and damage to cars and homes by mischief makers are other potential liability hazards producers should be aware of as the month draws to a close.
With proper risk advice, clients—and their agents—should be able to enjoy a fun-filled Halloween without the headache of accidents and insurance claims.
