NU Online News Service, Dec. 21, 1:40 p.m. EST

Individuals and businesses hosting holiday parties should bewareof "Dram Shop Liability" laws in their state, as those individualsand businesses could be held liable for alcohol-related incidentsinvolving their guests, according to the Insurance InformationInstitute (I.I.I).

Several states have passed Dram Shop Liability laws, which makeit possible to hold anyone who serves alcohol to an intoxicated orunderage person responsible for damage or injury caused by thesesame individuals, the I.I.I. said. Those who serve the alcohol maybe sued, and could also be subject to criminal charges, I.I.I.explained.

Originally intended to apply to bars and other establishmentsselling and serving alcohol, I.I.I. said "social hosts" also havesome exposure to the risk of liability for serving alcohol.

Loretta Worters, I.I.I. vice president said in a statement, "Insome states you can be held legally responsible for your guests'actions after they leave your party. If you are throwing a partywhere alcohol is served, you have a responsibility to make surethat your guests are capable of driving safely. You don't want toallow anyone who has been drinking to drive home and possibly killor injure themselves or others on the road."

Business owners should also check their commercial generalliability policies as well, Ms. Worters said, to see if liquorliability is covered. "[I]f an employee becomes intoxicated andassaults another employee at the party, the incident would likelybe excluded under the CGL policy," she noted.

For those planning to host a holiday party at which alcohol isserved, the I.I.I. recommended the following tips:

o Encourage guests to pick a designated driver who will refrainfrom drinking alcoholic beverages so that he or she can drive otherguests home.

o Consider hiring a professional bartender. Most bartenders aretrained to recognize signs of intoxication and will limitconsumption by partygoers.

o Be a responsible host and or hostess. Limit your own alcoholintake so that you will be better able to judge a person'ssobriety.

o Offer non-alcoholic beverages and always serve food. It isproven that food can help counter the effects of alcohol.

o Do not pressure guests to drink or rush to refill theirglasses when empty. And never serve guests who are visiblyintoxicated.

o Stop serving liquor toward the end of the evening and switchto coffee, tea and soft drinks.

o If guests drink too much or seem too tired to drive home, calla cab, arrange a ride with a sober guest or have them sleep at yourhome.

o Encourage all your guests to wear seatbelts as they drivehome. Studies show that seatbelts save lives.