There’s a lot to think about when you host a party — what food to serve, how to decorate and where to set up the speakers. One lesser-known concern you should think about is social host liability — the potential responsibility for harm caused by a guest’s impaired actions. While nobody expects their party to take a turn or get out of hand, it’s important to be aware of your responsibilities as a host before you send out those invites.
Hosting comes with strings attached
Social host liability refers to the legal responsibility — both criminal and civil — for serving alcohol or drugs to guests who later cause harm to themselves or others. While criminal charges may arise in cases involving underage drinking or reckless behavior, civil lawsuits are more common — and potentially more expensive.
Currently, 43 states and Washington, D.C., have enacted social host liability laws, often called social host dram laws. These statutes differ by state, but many focus on when minors are served alcohol or when a guest is visibly impaired and still allowed to consume or leave the event.
Importantly, homeowners and renters insurance policies typically cover civil liability — not criminal charges. This means that if a host is sued for negligence, their policy may respond up to its limit, but it won’t cover illegal actions, such as serving minors or violating cannabis laws.
These laws are different from those governing commercial establishments, like bars or restaurants, and typically apply to private individuals hosting events at their homes or rental properties.
Prom season and parental liability
As we enter prom season, some parents may consider hosting parties for teens, believing it’s safer if drinking happens under their supervision. The goal may be to prevent teens from drinking in secret or driving impaired. While these concerns may come from a place of caution, providing alcohol to minors is illegal in every state — even at home — and can expose parents to significant legal and financial consequences.
In many states, adults who allow underage drinking on their property can face both criminal penalties and civil liability, even if they didn’t supply the alcohol themselves. Adults who host parties with underage drinking may face legal consequences, since 31 states allow social hosts to be held civilly liable for damages or injuries caused by underage drinkers, while 30 states have criminal penalties for adults who host or allow such parties in their homes or on premises under their control.
If an underage guest becomes injured, harms others or damages property, the host may be held responsible. This legal risk extends beyond the typical concerns about driving or physical accidents.
In one powerful example, parents in an East Coast state hosted a post-prom party in their basement, believing that teens would be safer drinking under supervision. They collected car keys at the door and stayed home during the event. Some teens brought pure grain alcohol and combined it with prescription sedatives stolen from another household. One teenager died from the combination. The parents who hosted the gathering were later sued for wrongful death, with the court finding they had failed to adequately supervise the event. Even without furnishing the substances, their decision to allow the party — and their lack of oversight — was enough to trigger legal liability.
One party, two lawsuits
Many hosts assume that if something goes wrong at a party, the intoxicated person alone bears responsibility. However, social host liability laws and negligence claims often place responsibility on both the guest, if an adult, and the host — and in some cases, hosts face lawsuits from multiple directions.
You could be sued by:
- Third parties injured by your guest’s actions, such as someone hurt in a car accident caused by your guest after leaving your event.
- The intoxicated guests themselves, if they are injured on your property or suffer harm related to substance use at your event. In the post-prom example above, the lawsuits filed by the parents of the intoxicated teens would fall under this category.
An impaired guest who trips, falls, at your event or, later, causes a car accident, might claim that you allowed them to over-consume substances. In many cases, a plaintiff’s attorney will allege negligence, arguing that you failed to take reasonable steps to prevent foreseeable harm. Courts often apply the “reasonable person” standard — to determine if the host knew or should have known that an injury could have occurred and did enough to prevent the injury.
Negligent hosts could face claims for quickly escalating costs such as:
| Medical bills | Range from hundreds of dollars to over $100,000 |
| Property damage | Depending on what is damaged, this could be hundreds to thousands of dollars |
| Lost wages | Depending on how long the claimant is out of work, this could easily reach tens of thousands of dollars |
| Pain and suffering | This is where the largest cost could come in. Determining a value here depends on the type of injury. |
| Legal fees and court costs | Legal costs can easily go beyond six figures, depending on the type of injury. |
Insurance has limits — your financial obligation might not
Even if your homeowners or renters insurance includes personal liability coverage, the policy clearly states the insurer will pay no more than the limit of coverage. So, if the injured party’s medical bills are $500,000, and the policy limit is $100,000, you would owe $400,000 — the amount of damages above the limit your carrier will pay. In other words, you become personally responsible for the outstanding medical invoices. Umbrella insurance, if you have it, may help bridge this gap if a court awards more than your policy limit.
And if the insurer deems your actions grossly negligent or illegal, such as ignoring clear signs of impairment or allowing underage drinking, they may deny the claim entirely, leaving you to cover all damages and legal costs. Depending on the injuries, legal costs alone can go well beyond six figures. In the case of the East Coast prom party, the defense costs were well above $150,000 due to discovery and experts. I have seen litigation invoices as high as $300,000.
How to minimize your risk as a host
While all these factors can be scary, taking responsible hosting steps can reduce your exposure:
- Know your state’s laws: Legal consequences and responsibilities of hosts vary by state and even by county or city. Understanding your state and local laws before the party starts can help keep guests safe and avoid a lawsuit.
- Review your coverage types and limits: Not all home insurance policies or umbrella policies cover the same things. Read your policy documents thoroughly, and ask your insurance agent if you have any questions about your coverage.
- Monitor alcohol consumption and provide plenty of food: Replenish alcohol availability as needed rather than making all beverages available at once. Making food available and accessible can help slow intoxication.
- Close off dangerous areas of the home: Consider closing off areas like pools, steep staircases and abrupt ledges.
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