Season’s Meetings

Holidays often include celebrations that bring together families and friends in private homes across the country. Food, fun, talk and spirits flow generously and, to add a sobering thought, so do injuries and accidents. It’s not news to hear that increased drinking leads to increases in personal tragedies, but it’s important to get reminders that individuals must be responsible for their actions. One major area of responsibility is as a party host. Hosts are given the credit for the enjoyment that their guests experience at a party. On the dark side, party-givers are also asked to bear partial or full responsibility for guests who cause damage or injury on the way home from a gathering. In other words, they may be sued for contributing to losses caused by alcohol-impaired guests.

Applying Risk Management (Common Sense) to Hosting

The good news is that the brunt of responsibility, even via lawsuits, has to be faced by the individuals who directly caused the loss. There would have to be strong evidence to support a host being held financially responsible, since any involvement is indirect. For example, Jane provides drinks to Barrie, who then plows into the side of Chris’ car and garage.

While a homeowners policy may offer coverage if a host has substantially contributed to a loss, an insurer may be able to deny a claim for a number of reasons, including:

• A gathering involves the host making an income
• The involvement of paid bartenders
• The party is thrown as a fundraising event
• A host’s knowledge that the guest was impaired and continued to serve liquor
• The host failed to make arrangements for impaired guests (designated drivers, taxis, lodging, etc.)
• Local or state law(s) related to providing alcohol

Of course, the best course of action is to make sure that parties are thrown responsibly, are done as a social (rather than business or commercial) event, and that the chances of sending drunk guests on the road are minimized. A good host will make sure that food is available, that a liquor supply under his or her control is cut-off and that impaired friends or relatives are prevented from endangering themselves or others. No holiday celebration should end up with a lawsuit.

If you haven't done so already, please read Part 1

If you or someone in your household operates or is building a Website, you need to be aware that the site could open you to legal situations. Here are some questions you should consider:

Who created the site?

Key consideration: depending upon the circumstances, a private party that created the site for you may share (or even own) the responsibility for damages caused by the site.

What is the purpose of your site?

Key consideration: Is there ANY business activity or purpose? If so, you may have an immediate need to secure appropriate protection.

What content is found at your site?

Key consideration: Not only do you have to think about YOUR message, but you must think of other parties that appear at your site such as friends, companion businesses or even miscellaneous links.

Who do you intend to attract to the site?

Key consideration: There's a big difference in the type of people you're targeting, such as inviting:

• relatives to see baby pictures or family newsletters
• customers to request product/service information or to place orders
• hobbyists to distribute or solicit stories or advice
• strangers to a forum for discussing sports, political or other topics

Is there anyone you would not want to see the site? Why?

Key consideration: Answering this question honestly is critical. It can identify prime areas for possible legal action against you. It may also suggest what precautions you may take, including the easiest action such as eliminating the reference to a person, group or organization. Does Your Site Create An Insurance Need?

After examining the key concerns about your Website, you should be prepared to take precautions which may include:

• adding security features to your Website
• changing the content
• adding waivers or disclaimers about links or certain pages that appear on your site
• adding user agreements to your site
• creating guidelines on maintaining current and future content at the site
• Changing your homeowner coverage
• buying additional or special personal or business liability insurance
• adding or eliminating a guest book (if you have a guest book, pay close attention to what visitors say)
• eliminating the Website

Once you've carefully examined your Website situation, a discussion with an insurance professional could be an excellent step to identify coverage needs which may include having to buy commercial coverage. The instant and widespread access represented by the Internet creates new perils for individuals. Don't hesitate to seek the help of an insurance professional or even competent legal advice.

A Brave New Web World

Each day, thousands of persons around the world are discovering the Web. While many are content with passively exploring, there are plenty of people who decide to become active participants by creating their own Websites. The reasons for having a Website vary, ranging from frivolity to earnestness, or they may be strictly pleasure or serious business. Personal Websites commonly describe the host, his or her family and interests such as a particular hobby, sports, profession, humor, etc. Whatever the reason for creating your own Website, it can represent an additional source of loss that may require additional insurance. The loss potential is directly related to the purpose and content found on the Website. New Opportunity For Old Types Of Loss

Although the Web is still relatively new, Web-related loss exposure is not. Remember that legal liability to another person or party is the result of your actions that cause injury or damage to property. Your Website liability is an extension of your accountability for what you say or write and it extends to members of your household; so it's important to be aware of your family's little computer wizard.

The types of losses that may be created by a Website include:

• Libel - knowingly publishing false information that harms a person's reputation).
• Invasion of Privacy - disclosing information that interferes with another party's peace of mind.
• Infringement - violating or interfering with another's property rights or the right to pursue business

This is quite important. Most homeowner policies protect against liability for physical injury to another person or to actual damage to another party's property. Liability created by Website content typically involves personal (or non-physical) injury which is not covered by a typical homeowner policy. While individuals may be able to add protection (such as add-ons to a homeowner policy or umbrella coverage), certain losses may still be uncovered because they involve intended acts or business activity. Can You Protect Yourself?

The good news is you can take steps to eliminate or, at least, minimize the possibility of facing a Website-related loss. The first step is to identify areas of concern.

The key to understanding and addressing any possible Website liability is to focus upon:

• the nature of the Website
• the Website's contents
• who may be harmed by the site
• how a party may be harmed

It's important that you think hard about these issues and approach the job objectively. Your building a site just for "fun" could end with you explaining the punchline in court. Two people can interpret a site in radically different ways. Use a method of examining your Website that helps you view it through "fresh" eyes that won't gloss over important facts. Asking the help of others could be a big plus.

See Part 2 for important considerations about your Website.