How Party Hosts can Avoid Liability Risk for Event or Holiday Parties

Home party hosts and small businesses can inadvertently run the risks of lawsuits if someone hurts themselves while at an event, such as a Super Bowl Party, an office Christmas Party, or even a birthday party. However there are ways to avoid major financial consequences if that happens, so says Courtney Klosterman, home insights expert at Hippo Insurance.

Klosterman says the first step is ensuring their safety and recovery. Then liability insurance comes in as a financial safety net.

Homeowners liability insurance will financially cover you and the members of your household against someone else’s eligible medical bills, legal expenses, lost wages, and other related costs. This coverage activates if a person gets injured on your property or if you cause injury or property damage to someone else.

With liability insurance, personal injury coverage can extend to anything you’re deemed responsible for, such as someone slipping and falling on an icy walkway, or even food poisoning or damage to someone else’s property or belongings.

Most common homeowners policies, like HO-3 insurance, do include a certain level of personal liabilities insurance protection, though you may still want to purchase additional coverage for even greater peace of mind. Especially if you have things like a swimming pool, trampoline, or dog on your property that increase the risk of accidents.

To determine how much personal liability coverage you need, you should consider the value of your assets. If you have assets that could be taken in a lawsuit—such as a second or vacation home, personal checking or savings accounts, investments, and the like—you might want to increase your coverage limits.

Another consideration is your risk factors. How often do you have guests over, and what are their average ages? Do you have home features that might cause injuries, such as a pool, trampoline, or stairs? It might be a good idea to expand your coverage amounts to prevent you from paying too much out of pocket should an accident occur.

The difference between personal liability and medical payments coverage:

Personal liability (Coverage E) covers financial loss if you’re liable for someone else’s injuries or property damage. This comes in handy if you or anyone in your household injures someone else or damages their property and is found liable. This homeowners coverage can help with the costs if they decide to sue. It can pay for court fees, hospital bills, court awards, pain and suffering, property damage and anything else you’re responsible for.

Medical payments (Coverage F) covers minor medical expenses if a guest is injured on your property. For example, if your mother is visiting and accidentally slips down your stairs and breaks her ankle, she may not have any plans to sue you because it wasn’t your fault. However, you may still want to help with her medical bills. In this case, you could use Coverage F to help her pay for X-rays, doctor visits, and medications up to your policy’s limit.

Steps homeowners can take before guests arrive to reduce risk:

 Preparing for the unexpected as a homeowner is essential. According to Hippo’s annual Housepower Report, 76% of US homeowners reported that at least one home-related issue impacted their financial stability in 2025. Make sure that you have the proper insurance in place to protect you financially when the unexpected occurs, whether extreme weather hits or an accident occurs on your property.

It’s also important to stay up on proactive maintenance to remove any potential hazards before entertaining. Here are some common winter hazards to avoid:

• Slips and falls – Walkways become treacherous due to snow and ice accumulation in the winter, and slippery surfaces are common causes of injuries. In regions with winter weather, promptly clear snow and ice from walkways and driveways. Use salt or sand to reduce slipperiness, ensuring safe passage for guests.
• Inspect exterior lighting – Outdoor lights help you and your loved ones safely walk outside in the dark. The extra light is especially helpful when walkways are icy.
• Repair your driveway and walkways – Icy walkways and driveways can become a source of slips and falls in the winter. Any cracks or unstable supports can create an even more dangerous situation. Not to mention, cracks can accumulate water that can freeze and expand, enlarging existing cracks.
• Inspect your porches and decks for anything that’s loose, damaged, or needs replacing – Porches and decks are often the first space that welcomes guests to your home. They’re also subject to wear and tear from weather, so regular maintenance is essential to prolong the look and life of your deck or porch.