With the festive season upon us, many businesses are gearing up for their annual Christmas parties. In Australia, over a third of employees attend these events, with lunch being the most popular option, followed by sit-down dinners, cocktail parties, and experiential activities. While hybrid or virtual parties are still emerging, they’re becoming a possible alternative.

On average, Australian employers spend nearly $10,000 on work Christmas parties. However, the cost can quickly rise if your business faces liability claims. Proper preparation and the right insurance are essential to protect against risks—from minor accidents to major claims.

Understanding Event-Related Risks

While Christmas parties are a time for celebration, they can also bring serious risks. From slips and falls to property damage, accidents can quickly turn festive fun into legal headaches. For instance, a spilled drink could cause injuries or damage the venue, while intoxication or harassment allegations could lead to costly claims.

To help you avoid these pitfalls, we’ll outline key risks and explain how the right insurance can protect your business. But first, here are some crucial tips to keep things smooth and safe.

Practical Tips for Minimising Risk

To ensure your Christmas party is safe and enjoyable, consider these proactive steps:

• Check the Venue’s Liability Coverage: Ensure they have insurance in place for accidents.
• Hire Certified Staff: Professional servers with responsible alcohol service certifications help maintain control.
• Make Attendance Optional: Avoid forcing employees to attend, especially if some are uncomfortable.
• Assign Event Supervisors: Designated points of contact for handling issues discreetly.
• Set Clear Behaviour Guidelines: Remind staff that workplace standards apply, and set expectations for gift-giving (e.g. Secret Santa).
• Limit Alcohol Consumption: Offer drink vouchers or a set limit to prevent overindulgence.
• Provide Non-Alcoholic Options: Ensure everyone has choices, including non-drinkers.
• Cater to Dietary Needs: Make the event inclusive by accommodating various preferences.
• Offer Safe Transport: Provide taxis or shuttle options for guests.
• Ensure Venue Safety: Check that the venue is well-lit, safe, and has clear emergency exits.
• Debrief After the Event: Get feedback to identify areas of improvement and address any concerns.

Finally, review your insurance policies. Work with your broker to ensure your coverage includes protection for events like Christmas parties. Evaluate your Management Liability insurance for key protections, such as coverage for health and safety costs, employment practices, harassment, and theft.

Management Liability

Since Christmas parties are considered an extension of the workplace, company policies on harassment and discrimination still apply. However, inappropriate behaviour can sometimes occur at social events. Management Liability coverage helps protect your business from claims related to misconduct, such as harassment or discrimination, that might arise during the party.

Workers’ Compensation Considerations

If an employee is injured at your Christmas party, workers’ compensation may apply, especially if attendance was compulsory. Even injuries at social events can trigger your workers’ compensation policy. Be sure to review your state or territory’s workplace health and safety laws and check that your coverage addresses potential risks before the event.

Offsite Event Venues

If your party is held at a third-party venue, it’s essential to verify their insurance coverage. Many venues include clauses making your business liable for damages or incidents during the event. Carefully review contracts with venues or event planners to clarify liability responsibilities before signing.

Once you’ve covered the risk minimisation tips and reviewed your policy with us, you’ll be all set for a safe and enjoyable festive season.

If you’d like to know more about the Liability Risks Hidden in Your Christmas Party Plans CLICK HERE, or contact us for a confidential discussion today.