Client appreciation events, networking receptions, and company celebrations are great opportunities for Ontario businesses to strengthen relationships and showcase their success. Whether you’re hosting a cocktail party at a downtown venue, a golf tournament, or a holiday dinner, these events can boost morale and foster goodwill. But behind the scenes, they also bring something many companies overlook—legal and insurance risks.
Accidents can happen anywhere. If a guest slips on a wet floor, trips over an extension cord, or becomes ill from food or drink, your business could face liability for their injuries. Understanding your legal responsibilities and ensuring you have the right insurance in place can help prevent what should be a positive event from turning into a legal problem.
Your Duty of Care as an Event Host
Under Ontario law, businesses that host events owe their guests what’s known as a “duty of care.” This means taking reasonable steps to ensure the premises and activities are safe. The Occupiers’ Liability Act makes it clear that those who control a property—whether they own, lease, or rent it—must keep it reasonably safe for anyone who enters.
If your company is hosting an event at your own office or at a rented venue, you are considered the occupier for the duration of that event. That means you have to think about hazards like uneven flooring, poor lighting, or slippery entrances, as well as ensuring that food and drinks are handled safely. You also have to consider alcohol service, crowd management, and even the condition of any rented equipment or furniture.
Failing to take these precautions could expose your company to a premises liability claim if someone is injured.
Reviewing Your Insurance Coverage
Many businesses assume their existing commercial general liability (CGL) policy automatically covers events. While this insurance does provide protection for certain third-party injuries and property damage, it’s not always comprehensive. Some policies exclude off-site activities or specific types of events.
Before hosting, it’s wise to contact your insurance broker or advisor to review the details of your policy. Make sure that coverage applies to the location and nature of your event, that the limits are adequate, and that there aren’t exclusions for activities like alcohol service or entertainment. If your policy falls short, you may want to purchase special event insurance—a short-term policy designed specifically to cover the risks associated with hosting gatherings.
Alcohol and Host Liability
Serving alcohol can add a layer of complexity. In Ontario, even if your business isn’t in the hospitality industry, you can still be held responsible under host liability principles if a guest becomes intoxicated and injures themselves or someone else. Courts have recognized that social hosts and commercial hosts alike can share in the responsibility when over-service contributes to harm.
To protect your business, it’s important to ensure that alcohol is served responsibly. Hiring licensed bartenders, offering plenty of food and non-alcoholic beverages, and arranging for taxis or ride-share options can go a long way in reducing risk. From an insurance standpoint, ask your provider whether your policy includes host liquor liability coverage. If it doesn’t, this is another area where temporary event coverage can be valuable.
Managing Vendors and Venues
When working with event venues or outside vendors—such as caterers, decorators, or entertainment—it’s essential to review their contracts carefully. Many venues carry their own insurance, but you should always confirm that they do and that your business is named as an additional insured on their policy. This can protect you if an incident arises from their actions or negligence.
Contracts should also include clear indemnification clauses, outlining which party is responsible if something goes wrong. These documents may not seem exciting, but they can save your company significant stress and expense in the event of a dispute.
Planning for Safety and Emergencies
Even smaller gatherings benefit from a basic safety plan. Designating staff to keep an eye out for potential hazards, confirming the location of emergency exits, and keeping first aid supplies on hand are simple yet effective ways to demonstrate that your company took reasonable steps to protect guests. Documentation of these efforts can also be valuable evidence if a claim ever arises.
When to Speak With a Lawyer
No matter how well you plan, unexpected accidents can still occur. Consulting with an injury lawyer before hosting your event can help your company understand its legal exposure and ensure the right protections are in place. And if an incident does happen, an experienced lawyer can guide you through the insurance process and any potential claims that follow.
ABOUT THE AUTHOR
Casey Dorey is an associate lawyer at Bergeron Clifford LLP. He works primarily in Kingston but travels across Eastern Ontario.
Casey obtained his LL.B from the University of Leicester, United Kingdom, with First Class Honours. While in law school, Casey was a Moot Court champion and represented the school externally in London, England. He was also awarded the Canadian Spring Scholarship.
He has appeared before the Ontario Superior Court of Justice, Small Claims Court, Criminal Injuries Compensation Board, and the Social Security Tribunal.
