Wahoo, the teenager is graduating high-school. Time for a celebration. Time for a graduation party. But don’t serve alcohol or that graduation party can cause you major liability problems.
A Supervised Graduation Party?
Don’t assume that supervising a graduation party is a good option. If you are supervising underage drinkers, you are assuming a major liability. A liability that your insurance company most likely will not cover, leaving you exposed to cover the liability from your own savings and investments.
American Family Insurance agent Jay Gandee wrote a nice article on how a graduation party impacts your home insurance. Read on for the details from Jay’s article. Click this link Unfortunately the link has been removed. We summarize the article below. To have informative articles like this or information on which insurance companies are good at paying claims, click this link to subscribe to an ValChoice newsletter.
Graduation Party Considerations – Before the Party
Many homeowners policies have a clause stating they won’t cover losses that occur in this situation. Laws vary from state to state; and, according to the Drug-Free Action Alliance, a statewide, nonprofit agency working to prevent substance abuse, in some states you could be held liable even if you’re aware of drinking being done at another location other than your home, and do nothing to prevent it.
Allowing an underage drinking party could mean an accident or property loss that could result in crippling legal expenses, lawsuits and monetary judgments that may have to come out of your pocket. Your insurance company may also decide to discontinue your policy. This is in addition to the burden of having to live with the guilt and shame of knowing an accident or injury occurred because of your poor decision.
Protect yourself — and the young people who may take part — by saying no to hosting underage drinking parties, and encourage the young people in your life to obey the law and celebrate responsibly.
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