The company holiday party holds inherent potential for drama and danger.

Holiday parties have bounced back big-time post-pandemic. The 2023 Challenger Holiday Party Survey from Challenger, Gray and Christmas Inc. found that 64.4 percent of companies will have in-person holiday parties in 2023, up from 57 percent in 2022 and 27 percent in 2021. In 2019, 75 percent of companies reported having in-person holiday events. About 4 percent will hold virtual holiday events to include a far-flung workforce.

With more people working out of the office, the holiday party may be the only time some co-workers see each other face-to-face. But the same rules apply at a company party as they would during regular work hours in the workplace. The survey found that 58 percent of organizations will hold holiday celebrations during the workday rather than after hours.

But are companies covered by general liability if something goes wrong at a holiday party? Maybe. Short-term liability coverage for special events protects event hosts. A venue may require proof of short-term venue liability insurance before hosting a holiday party.

Event liability insurance pays legal and judgment costs awarded to an injured guest if the organization is found negligent. Host liquor liability coverage can protect against lawsuits brought by injuries or property damages caused by a guest who has over-imbibed. In many cases, host liquor liability is not an exclusion of commercial general liability policies, but organizations should consult their insurer to double-check coverage details before any event.

Limiting liability boils down to setting clear expectations and controlling the environment. Organizations can help limit liability with a few simple, low-to-no-cost steps.

Send out a reminder. Having clear policies and expectations surrounding behavior year-round will set the tone for the holiday party. A few days before the event, send a reminder outlining the company code of conduct and harassment policies. If the party includes alcohol, remind invitees to plan for a ride home.

Say no to potluck. Maybe co-workers are five-star chefs with immaculate kitchens. Or maybe their cat walks all over the kitchen countertops with little litterbox paws! Improper storage, unknown ingredients, contamination — a lot can go wrong when employees bring food from home. Skip the food poisoning, unsanitary crudites and allergy triggers and stick to clean, clearly labeled professional catering or store-bought items. Of the organizations participating in the holiday party survey, about 55 percent will be using professional catering services, down from about 70 percent last year.

Make it inclusive and optional. Everybody can come, but nobody has to. Multicultural workplaces mean that the holidays are general and celebratory, steering clear of religious themes. Have a variety of food and drink options to accommodate dietary and health restrictions.

Find the right venue. According to the Challenger, Gray and Christmas survey, 32 percent of organizations plan to use company premises to hold the celebrations, compared to 28 percent last year. Don’t hold the event in a private home. Don’t hold the event near dangerous machinery or forklifts—or pools. A daytime party in your organizational space may limit fun, but it also limits antics and liability. Renting a third-party venue and sharing some responsibility with a party planner and outside staff can help prevent the unexpected.

Limit alcohol. Hire a bartender or have a sober someone distribute alcohol to event attendees. Consider offering drink tickets. Holding a daytime event and setting an end time can also help limit the amount of alcohol people consume. The presence of leadership and management can help to help keep everyone in line and tamp down trouble. According to the Challenger, Gray and Christmas survey, about 56 percent of organizations plan to serve alcohol at their event, down from about 63 percent in 2022.

Monitor social media. If you have an organizational social media policy about mentions or photos, make sure everyone is aware that those policies extend to the holiday party, regardless of where the event is held.

Get everyone home safely. In the age of Uber and Lyft, there is no excuse for anyone to drive drunk, buzzed, tipsy or whatever other incremental excuse a partygoer may offer up. Employers may be held liable for accidents or injuries that occur during the event and to and from the event. Encourage co-workers to look out for one another, and if someone is notably intoxicated at any point during the event, plan to get them a ride home.

Take complaints seriously. Mistletoe is no excuse. If someone reports issues after the event, pursue the same course of action as though the incident happened during a typical business day.