Chapter Insurance Plan Gives You Peace of Mind for Holiday Parties
November 27, 2012 - The air is turning chilly and some of us have even seen a snowflake or two. It is the time of year that chapters start planning their holiday parties and annual banquets. These events are a welcome celebration of another successful year as a strong EAA chapter. Merriment abounds as the jovial atmosphere promotes chapter camaraderie and good cheer. And since the focus is less on flying than it is on fun, holiday spirits may be flowing in every sense of the word.
Through the Chapter Insurance Plan, chapters may enjoy (in moderation!) these events with the peace of mind that host liquor liability is in place. Host liquor liability protects the chapter during its approved events where alcoholic beverages are purchased and served by the chapter without charge for attendees. Though this coverage sounds fairly straightforward, there are some important parameters to keep in mind to ensure that the chapter isn't taking on any undue risk by serving that eggnog.
First, host liquor liability is applicable to events where alcohol is purchased by the chapter and offered to legal drinking age guests free of charge. This also means that a charge cannot be made at the door, or for a ticket to enter the event. If the event carries a charge for attending, or the purchase of a ticket with the understanding that the charge or ticket includes food and drink, the guest is paying for alcohol, albeit indirectly.
If a chapter had decided to host an event where there is a charge for attendance and/or alcohol, there are still opportunities to raise a glass and make a toast. By working with a liquor-licensed caterer who uses only licensed bartenders, making a charge at the door is acceptable. Additionally, bar sales are handled directly by the bartenders, so no money is changing hands between the guest and the chapter for a drink. The caterer must list the chapter as an additional insured on its liquor liability policy, evidenced by a certificate of insurance. EAA's risk management department (920-426-6106) is always here to help facilitate that process.
Congratulations to all of our EAA chapters on another successful year, and take time out to enjoy a well-deserved chapter holiday party. Cheers!