Alcohol Liability

Description:

Alcohol liability control can be an important risk management consideration for any organization or establishment. Municipalities may be responsible for patrons when alcohol is served at events. Forms of alcohol liability and steps for limiting risk are identified.

Author:

ClearRisk Inc.

Alcohol Liability

Municipalities may be responsible for patrons when alcoholic beverages are served at city premises.

Forms of alcohol liability include:

  • Alcohol liability as a server (serving people past the point of intoxication)
  • Occupiers’ alcohol liability
  • Alcohol liability as a sponsor of potentially dangerous activities
  • A municipality can be held liable for injuries to an intoxicated person as a sponsor of an activity.
  • Use of excessive force
  • Employees/volunteers that provide security cannot use unnecessary or excessive force to manage intoxicated persons.
  • Joint and Several alcohol liability

Step 1: Ensure Compliance with Gaming and Liquor Act

The guidelines for how alcohol liability can be reduced and how it is to be handled on municipal property are as follows:

  • Selling or providing alcohol to a person who is, or appears to be, intoxicated is an offence.
  • Drinking, buying, attempting to buy, or otherwise obtaining alcohol is prohibited by law for anyone under the age of 18.
  • Possessing or drinking alcohol in any place other than a home, private place, or a facility that has a license or permit is an offence.
    • It is illegal to drink in a public park, beach, recreation centre lobby, hockey dressing room, fire hall, street, parking lot, etc.
  • Being intoxicated in a public place is an offense. 

Step 2: Create a Municipal Alcohol Policy

Alcohol policies should be used to define when and where alcohol is to be permitted and under what conditions. A balance must be achieved so that the use and enjoyment of alcohol does not result in harm to patrons or others.

Municipal Alcohol Policy

A Municipal Alcohol Policy should include these key elements:

  • A list of locations where alcohol is prohibited
  • A list of locations where alcohol will be permitted (including licensed locations) and where special occasion permits will be required
  • Conditions under which alcohol can be served
    • Include items such as the ratio of bartenders to guests, training of bartenders, food service requirements, hours of operation, security, separation from non-drinking areas, checking for under-age drinkers, designated driver programs, etc.
  • How enforcement will be carried out
    • Define who has this responsibility and give employees/volunteers direction on what to do with violators.
  • Penalties for violations
    • For example, violation for teams engaged in league play can be progressive penalties that lead to suspension of teams that fail to follow the rules.
    • An educational program
    • Advise the public as to what the rules are as well as promote the responsible use of alcohol.
  • Use of Facility Use Agreements – See Article 16 Transferring Liability
  • Additional guidelines for avoiding alcohol liability

A hold harmless and indemnifying agreement should be included holding the municipality harmless and indemnifying the municipality for losses or damages resulting from the negligent use of the facilities or the serving of alcohol.

  • Obtain insurance coverage with higher limits.
  • Obtain appropriate permits.
  • Follow rules and regulations.
  • Provide adequate supervision and security.
  • Recommend termination of the agreement if the facility is operating in an unsafe manner.
  • Be aware of the level of intoxication of all patrons at all times.
  • Do not serve patrons past the point of intoxication.
  • Protect patrons from harm if they are intoxicated (usually involves arranging for patrons to get home safely).
  • Ensure that other people will not be harmed after they leave the premises.

Step 3: Implement a Zero-Tolerance Alcohol Policy

Do not allow employees to consume alcohol or drugs in the course of performing municipal duties.


Related ClearRisk Alcohol Liability Risk Tools:

Alcohol Service - Risk Improvement

Drug and Alcohol Policy - Zero Tolerance Policy Sample



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