The holiday season has arrived, meaning faculty and students alike will be throwing end-of-semester parties.
However, in this age of endless litigation, an age where one can seemingly be sued for looking at someone else in a funny way, is basic homeowner's insurance enough protection?
Enter event insurance, special coverage that can make sure all bases are covered in the event of an accident, arrest or any other liability specific to a medium to large-scale event.
"If it is a small party at your house, your homeowner's (insurance) probably is enough," said Alan Mitchell, Eclectic Insurance agent. "It is sad to say, but in this day and age you have got to protect yourself. There are so many possibilities for someone to sue you."
While basic policies cover most events at personal residences, extended coverage can be valuable for staff Christmas parties and other, larger events.
Such policies can often reach an excess of $700 and often require a liquor license if alcohol is being served.
The use of extended coverage can be valuable for those with the fiscal means and desire for peace of mind during the holiday season.
However, Lee Colquitt, an Auburn insurance professor, said the use of extended coverage can often be avoided depending on the number of attendees.
"If I had an accounting firm and invited three or four people over for a corporate party, it would be under limited coverage," Colquitt said. "This typically covers incidental liability for alcohol. If you're not an alcohol distributor like a bar or restaurant and only a few drinks are served, that's fine."
But what about students throwing parties?
Colquitt said, while the presence of alcohol at a party with those underage can complicate and even nullify some policies, dry gatherings are usually covered by a parent's policy.
The difference between a student's living in a family-owned house or a leased apartment can also be an issue.
Extended insurance coverage may vary depending on the terms of that lease.
"The level of risk would be highly correlated with any alcohol being served," Colquitt said.
Colquitt said there are things to consider before throwing a party.
"You'd have to ask the question of what would happen if it got out of hand," Colquitt said. "A basic homeowner's policy typically covers you for personal liability, as long as the activities are legal. If someone's coverage extends to a student by claiming them as a dependent, the policy will cover that as well."
Use of extended coverage goes beyond apartment and office parties, however.
It is often used for events and venues ranging from Christmas tree sales and parades to wedding ceremonies.
Policies can reach upwards of $700, often for a single day's use.
However, this money is well spent if able to avoid lengthy court cases or large corporate settlements.
Larger companies such as State Farm are often reluctant to handle such policies due to the specific deviations between cases.
"State Farm is very limited on commercial-type coverage," said Rusty Sheehan, State Farm agent. "It falls more in the realm of independent companies. Intoxicating beverages could be consumed and it had the potential to get out of hand. Each form has to be looked at individually."
Sheehan said examinations of individual cases is also a major factor.
A small wedding ceremony held in a church or courthouse without the use of alcohol would carry little liability.
Ceremonies held in large, open areas employing fireworks or other potentially dangerous celebratory accessories are a different matter altogether.
Ultimately, inquiries regarding when to use extended event coverage should be submitted to one's own agent.
Because of the potential costliness of such policies and the potential of liability loopholes to render them useless, advising in cost-effectiveness is important.
Also, the distinction between a private and corporate party can be hazy, which is why such questions are important to ask.
Colquitt said, as representatives of the company, agents are there to serve both their holders and their company are the only ones who can give explanations regarding policy.
"If I were a concerned student, the first thing I would do would be to go to that person for answers," Colquitt said. "Is an apartment away from home defined by an insurance policy? Are there limitations defined by that? There's no better source for specific, explicit responses."
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