Liquor Liability - Risk Management

Summary

Liquor service brings about important risk management considerations for any organization. As with all risk mitigation strategies, it is important to create and effectively implement policies and procedures for events at which alcohol will be served. Some useful risk management guidelines are provided.

Company

ClearRisk Inc.

Liquor Liability - Risk Management

 

As with all risk mitigation strategies, it is important to create and effectively implement policies and procedures for events at which alcohol will be served. It is also advisable to make sure that third parties are aware of the rules and regulations in effect when utilizing your organization’s facilities. Some useful risk management guidelines include: 

1. Creation of policies and procedures with meaningful consequences and strictly enforcement.

2. Compliance with all legislation regarding alcohol.

3. Require proof that proper permits (to sell or serve alcohol) have been obtained. 

4. Train servers. 

        Do not serve or sell alcohol to those under legal drinking age.  The age will vary depending on the state/province or territory. 

        Do not serve patrons past the point of intoxication. 

        Ensure that servers understand government legislation pertaining to alcohol.  Ensure that servers follow the organization’s policies and procedures. Make sure training is documented.

        5. Implement a mandatory identification policy.

        Establish the forms of identification that will be accepted.

        Establish when identification needs to be shown. For example, require identification from anyone who is not obviously over the age of 30. 

        6. Display informational material on government alcohol-related policies and legislation.

        Inform customers that the business will abide by the rules set out by the government.

        7. Implement inventory controls over alcohol.

        Implement measures to prevent theft (e.g., install security cameras, hire additional personnel, etc.).

        8. Regulate hours to sell or serve alcohol.  Check with your local authority to determine minimum standards.

9. Use a facility-use agreement if you have rented out a location that you own and where renters may consume alcohol. 

        Include a hold-harmless and indemnifying agreement that holds the owner of the premises harmless and indemnifies the owner for losses or damages resulting from the negligent use of the facilities or the serving of alcohol. These clauses may help limit your liabilities. Consult a lawyer for advice on contracts and agreements.

        10. Obtain insurance coverage, possibly with higher limits (i.e., higher limits than organizations that do not serve/sell alcohol). Consult your insurance representative.

11. Consider implementing a Zero Tolerance Alcohol and Drug Policy [MSOffice1] 

        Do not allow employees/volunteers to consume alcohol or drugs while working. 

        Do not allow employees/volunteers to drink and drive.

        Do not allow employees/volunteers to work if they appear intoxicated.


 [MSOffice1]Link to file’ Sample Zero Tolerance Alcohol and Drug Policy”



ClearRisk Manager boasts a Content Library of over 1300 Free Risk Tools – just like the one above! – all designed to help you manage your organizations risk. To view the full resource library go to www.clearriskmanager.com/risks/. You may also be interested in staying current with “Weekly strategies for managing risk” from CEO Craig Rowe at blog.clearrisk.com

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