The festive season is upon us, and for many businesses, that means it’s time for the annual Christmas Party.
According to EventBrite, more than a third of Australian employees attend a Christmas party. The most popular gathering is a lunch, next is a sit-down dinner, cocktail party or taking part in an activity or experiential event. There are no clear figures yet on the popularity of hybrid or virtual Christmas parties, but they could be an option.
On average, Australian employers spend just shy of $10,000 on their work Christmas parties, but it could cost your business a lot more if there are liability claims.
Preparation and the right insurance can help protect your business from risk exposures, ranging from minor mishaps to major claims. This article covers the major risks and what you can do to minimise them – it’s not too late!
Understanding Event-Related Risks
Slips, falls, or damage to property can flip a festive celebration into a legal concern.
For example, a spilt drink could lead to a guest injuring themselves or damaging the venue’s property. In more serious cases, intoxication-related accidents or allegations of harassment could result in costly claims against your business.
Below, we’ll detail other specific risks and how particular insurance policies can come into play.
But first, here are those all-important tips!
Practical Tips for Minimising Risk
Consider these proactive steps to reduce risks and keep your event safe and enjoyable:
- Ask the venue for their certificate of liability coverage in case of accidents
- Hire professional staff (with the required responsible serving of alcohol certifications) for serving food and drinks to maintain a controlled environment
- Make attendance optional
- Assign event supervisors as designated points of contact to handle issues discreetly
- Set clear rules about acceptable behaviour and refresh staff on company policies before the event – emphasise that workplace behaviour standards still apply
- If you’re running a Secret Santa/Kris Kringle where staff give each other gifts, offer guidelines about what’s appropriate
- Limit alcohol consumption by offering drink vouchers or setting a drinks limit
- Offer non-alcoholic alternatives
- Cater to dietary needs and preference, so it’s an inclusive event
- Arrange safe transportation options, such as taxis or shuttles, for guests
- Ensure the venue is well-lit, safe, and has clear emergency exits, and
- Debrief after the event to glean feedback on areas for improvement and also what worked well. Address concerns promptly.
Management Liability
Because Christmas parties are an extension of the workplace, be mindful that company policies on harassment and discrimination still apply.
At times, though, inappropriate behaviour can occur at social events. Management Liability coverage can protect your business from claims of misconduct, including harassment or discrimination, that results from incidents at the event.
Workers’ Compensation Considerations
If an employee is injured at your Christmas party, workers’ compensation could apply, particularly if their attendance was compulsory. Ensure you check your state or territory’s workplace health and safety laws.
Injuries sustained during work-related events, even social ones, could trigger your workers’ compensation policy.
We can help you review your workers’ compensation coverage before your party to check it addresses potential risks.
Offsite Event Venues
If your party is being held at a third-party venue, verifying their insurance is crucial. Many venues will include contract clauses making your business responsible for damages or incidents that occur during the event.
Peruse contracts with venues or event planners to clarify liability responsibilities before signing.
So, once you’ve worked through those risk minimisation tips and checked with us to review your policy coverage, you’re set for a wonderful festive season!