Organizations may be responsible for patrons when alcohol is served. Forms of liquor liability include:

• Liability as a server - serving people past the point of intoxication
• Liability as an occupier – People, companies or any other organization that owns, has possession of or responsibility for a premise are responsible for protecting persons on their premise from harm
• Liability as an employer that is involved in employees consuming alcohol such as at staff parties.
• Liability as a sponsor of potentially dangerous activities
• Use of excessive force – security personnel cannot use unnecessary or excessive force to manage intoxicated patrons. 

Risk Management

1.   Create policies and procedures with meaningful consequences and strictly enforce them.  Some useful elements of a  policy include:

• Limit alcohol consumption.
• Ensure that bartenders are experienced and do not serve obviously intoxicated persons.
• Offer food service.
• Encourage taxi use and possibly provide vouchers.
• Provide reduced/subsidized taxi and hotel rates.
• Encourage car pools and designated driver programs.
• Remind guests before and during the event not to drink and drive and of the other options available.
• Have several trained doormen/bouncers/spotters who remain sober and watch people leaving and encourage/insist on taxi use.
• Inform guests that intoxicated persons will be put into taxis.
• Display posters from Mothers Against Drinking and Driving (MADD), Students Against Drinking and Driving (SADD), or similar organizations outside and around consumption areas.

Some of these may be required by law.

2.   Comply with all legislation regarding alcohol.

3.   Ensure proper permits (to sell or serve alcohol) are obtained.

4.   Train servers

• Do not serve or sell alcohol to minors. The age of the minor will vary depending on the province or territory.
• Do not serve patrons past the point of intoxication.
• Ensure that servers understand government legislation and laws pertaining to alcohol.
• Ensure that servers follow the organization’s policies and procedures.
• Make sure training is provided and 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 obviously not 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 (i.e. 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.   Implement a designated driver program if patrons, guests or visitors are served or allowed to consume alcohol on your premises.

10.  Use a facility use agreement if you have rented out premises that you own and renters may consume alcohol.

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

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

12. Consider implementing a Zero Tolerance Alcohol and Drug Policy (sample below)

• Do not allow employees/volunteers to consume alcohol or drugs in the course of working.
• Do not allow employees/volunteers to drink and drive.
• Do not allow employees/volunteers to work if they appear intoxicated.

Claims Handling

1. Once a claim or potential claim is identified, immediately contact your insurance representative.
2. Record all relevant information surrounding the potential claim like names and contact information for any witnesses, staff or volunteers that were present or have information relevant to the incident.  Have staff/volunteers complete an incident report with all relevant details.
3. Refer any discussions with the claimant to your insurer. It is wise to tell employees and/or volunteers that they should not discuss liability with potential claimants and that they should NEVER ADMIT LIABILITY!!! 
4. Investigate potential causes and brainstorm and implement preventative measures. 

Additional Resources

Please note that the following list of resources is not comprehensive. There are other municipal, provincial and federal liquor regulations that need to be abided by.

Criminal Code: http://laws.justice.gc.ca/en/C-46/41584.html

Approved Breath Analysis Instruments Order:   http://laws.justice.gc.ca/en/C-46/SI-85-201/78858.html#rid-78864

Alberta - Gaming and Liquor Act        http://www.canlii.org/ab/laws/sta/g-1/20050318/whole.html

British Columbia (note that the website that these were retrieved from states that the statutes and regulations are not up-to-date) - Liquor Distribution Act       http://www.qp.gov.bc.ca/statreg/stat/l/96268_01.htm

        Liquor Control and Licensing Act  http://www.qp.gov.bc.ca/statreg/stat/l/96267_01.htm#section67

Manitoba  - The Liquor Control Amendment Act       http://web2.gov.mb.ca/laws/statutes/2005/c00905e.php

        The Liquor Control Act        http://web2.gov.mb.ca/laws/statutes/ccsm/l160e.php

Newfoundland       Liquor Control Act       http://canlii.org/nl/laws/sta/l-18/20050819/whole.html

New Brunswick - Liquor Control Act   http://canlii.org/nb/laws/sta/l-10/20050801/whole.html

Northwest Territories -  Liquor Act       http://canlii.org/nt/laws/sta/l-9/20050211/whole.html

Nova Scotia -   Liquor Control Act         http://canlii.org/ns/laws/sta/r1989c.260/20050801/whole.html

Ontario -      Liquor Control Act  http://canlii.org/on/laws/sta/l-18/20050801/whole.html    

Prince Edward Island -     Liquor Control Act    http://canlii.org/pe/laws/sta/l-14/20050801/whole.html

Quebec -  An Act Respecting Liquor Permits    http://canlii.org/qc/laws/sta/p-9.1/20050809/whole.html

Saskatchewan -   Alcohol Control Regulations   http://canlii.org/sk/laws/regu/a-18.011r.1/20050801/whole.html

       Alcohol and Gaming Regulation    http://canlii.org/sk/laws/sta/a-18.011/20050801/whole.html

Yukon - Liquor Act     http://canlii.org/yk/laws/sta/140/20041124/whole.html