Part 4: Giving Season, Gifting Risk: Why Charitable Holiday Events Need Insurance Too

As the holidays approach, many businesses shift their focus to giving back—sponsoring toy drives, hosting charity galas, or volunteering time and space for community events. It’s a feel-good season—but one that comes with hidden liability.

Even the most well-intentioned events can create major exposure if someone gets injured, property is damaged, or alcohol is involved. Whether you’re organizing an event or just participating, it’s critical to make sure your insurance is ready for the season of giving.

How Holiday Events Create Unexpected Risk

🎄 Pop-up fundraisers and public events From coat drives in parking lots to community dinners in rented halls, any event open to the public can increase your general liability exposure. Slippery floors, crowded spaces, or improperly secured equipment could all lead to injuries—and lawsuits.

🍷 Serving alcohol If alcohol is served—even at a private fundraiser—you may need liquor liability coverage. A single incident involving an intoxicated guest can expose your business to legal and financial consequences.

🧸 Employee volunteers When your team volunteers as part of a work event, are they covered under your workers’ comp policy if someone gets hurt? What if they use their personal vehicle to transport items?

Common Scenarios We’ve Seen at BudRisk

• A restaurant hosts a holiday mixer and a guest slips on wet tile near the bar.

• A real estate office sponsors a toy drive and a volunteer gets injured while lifting boxes.

• A cannabis dispensary holds a holiday raffle and a dispute arises over prize handling or crowd control.

• A construction firm rents a space for a year-end charitable event—only to discover the venue’s insurance doesn’t extend to outside hosts.

Types of Coverage to Consider

🎟 Special Event Insurance: Covers one-time events for things like bodily injury, property damage, or cancellation. Often required by venues.

🍾 Liquor Liability Insurance: Essential if alcohol is served or sold—even if it's a free open bar.

🚗 Hired and Non-Owned Auto Coverage: Important if employees use personal vehicles for errands related to the event.

🧑🤝🧑 Volunteer Accident Insurance: Covers injuries to volunteers without relying on workers’ comp.

Checklist Before You Host or Sponsor Anything

✅ Confirm your event is covered under your general liability policy—or get a special event endorsement ✅ If a venue or third party is involved, request certificates of insurance ✅ If alcohol is being served, check if liquor liability is needed ✅ Document who’s involved and their roles (staff vs. volunteers vs. vendors)

‘Tis the Season… to Double-Check Your Coverage

Community involvement is great for morale and brand reputation—but don’t let goodwill turn into a claim. Before you donate space, money, or manpower, talk to your BudRisk advisor. We’ll help make sure your generosity is backed by the right protection.

Let’s make this holiday season safe, successful, and stress-free.

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