Understanding and Minimizing Liability Risks When Hosting Parties
Welcome to summer, when warmer weather ushers in all kinds of fun events — pool parties, barbeques, boating, and of course the more formal gatherings like birthday parties and weddings. After a period of pandemic precautions, we are all eager to enjoy the company of friends and family without restrictions.
But before you party like it is 2019 again, you may want to take one more precaution: evaluate your personal liability exposure.
What Are the Risks?
The point of parties is to be free of stress and focus on the fun, such as games, refreshments, and great company. Unfortunately, parties can also be prime situations for accidents that can lead to injuries, insurance claims, and even lawsuits.
Even with a friendly social gathering on your own property, some unexpected things could go wrong. Here are a few examples:
Some of these scenarios may seem unlikely at first blush. But while low probability, they also can be high severity risks, which could wreak havoc on even the most well-designed and executed financial plans.
Even if your guests are as forgiving as you would have hoped, when accidents occur, their insurance company’s primary concern is about who is at fault and the financial considerations. Insurance claims related to an event that you host can easily jump well into six figures, especially when medical or property liability of a third party comes into play.
How Do I Protect Myself?
Risk management via insurance is a core component of every strong financial plan. Our philosophy is to put measures in place to protect against unlikely, yet severely damaging occurrences. There are several steps you can take to reduce potential financial liability risk when hosting an event. Luckily, these protective measures are generally easy and simple to implement:
Many of us want to celebrate this summer with friends, family, and fresh enthusiasm. The simple steps above can help you enjoy yourself while providing an extra level of protection against unlikely, but potentially large financial risks that you cannot underestimate when it comes to your hard-earned wealth.
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