HOLIDAY PARTIES … ARE YOU COVERED? By Bill Wilson, CPCU, ARM, AIM, AAM You’re probably familiar with this line from the holiday classic Deck the Halls: “‘Tis the season to be jolly … and adequately insured.” Or something like that. Well, the reality is that few people are thinking about insurance during the holidays (or just about any other time). That’s why we have to do the thinking and the reminding for them, at least when it comes to less obvious loss exposures. For example, from a property loss standpoint, it’s estimated that over a billion dollars in gift cards will be gifted during the holidays. ISO and most insurer homeowners’ policies view gift cards (what ISO calls 4
“stored value cards”) like money and impose a $200 or similarly low sublimit to covered losses involving these cards. This limit can usually be increased by endorsement and perils can be broadened by using, for example, an ISO HO 00 05 rather than HO 00 03 form. But few insureds know this unless told. Needless to say, there are many other property loss exposures that increase during the holidays. Christmas tree fires occur primarily in December and January and, perhaps surprisingly, losses are greater in the latter month. While most homeowners’ policies cover fire, from a riskDECEMBER 2023
management standpoint (including life safety), we can prevent the need to use our homeowners’ policies by using artificial trees, properly watering real trees, using proper extension cords, taking trees down promptly after the holidays, etc. But, one area that is probably most often overlooked involves liability exposures that occur as a result of holiday parties or family gatherings during the holidays. So, while I’m quoting holiday classics, how about this one from my favorite movie of all time, It’s a Wonderful Life: “I was just thinking of a flaming rum punch. No, it’s not cold enough for that. Not
