Delaware Business Insurance Update from CNC Insurance Associates "The Liability of Company Picnics" 7-9-16

During this time of the year many small business owners enjoy throwing summer picnics for their employees and families. The events usually include food , alcohol and fun activities. Unfortunately this combination causes some things to happen. So the question comes to mind, who is responsible?
Employees that get hurt during employer sponsored picnics could file for work comp benefits. Some state jurisdictions will allow these type of claims. A lot will depend on the circumstances surrounding the injuries however.  If a family member of an employee gets food poisoning from bad egg salad, is the business owner liable?  Maybe, maybe not, the good news here is the business general liability would cover the claim if the business if found to be liable. What about alcohol related claims , is the business liable?  Again , possibly, but the general liability policy will cover under the clause of host liquor liability, unless you are selling the alcohol and deemed " in the business" of selling or serving.
Summer picnics for employees are fun and great for morale and team building. However you have to use good risk management and understand your insurance policies before throwing the party. Risk is risk and it doesn't care if it is in the workplace or at the picnic table. Until next time be careful out there and know your  risks.

G. Kevin Nemith , President CNC Insurance Assoc & The Small Business Insurance Center
Serving DE, MD, NJ, PA, and VA.
www.cncinsurance.com
www.bizinsurancetv.org

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