Untitled Document

Wm. Haycook AUGUST/2001
PONTA, CASTLE & INGRAM AGENCY

This is not a difficult question to answer if my community theatre experience is any indication.
One of the first things I learned about community theatre is that theatre folks have a robust thirst for the spirits. We go to the local establishment after rehearsals. We toast opening night with champagne and drink some more at the afterglow. Alcohol is an ingredient in most of our social events. And who hasn't been regaled by old timer stories reminding us that it isn't a good cast party if it ends before the sun comes up.

While we can all remember and laugh about our experiences, we also need to remember that alcohol and insurance are a serious mix. Does your insurance include any kind of liability protection with respect to your serving alcoholic beverages? Is liquor liability a component you should add to your insurance portfolio? Does your state or municipal government require a license? Is your state a "strict liability" state?

What follows are some generalizations that hopefully will apply without regard to your specific location. However, it is important to remember that liquor liability laws are established and enforced by state and municipal authorities, so it is imperative that you thoroughly investigate those laws and policies that directly impinge upon your particular community theatre situation.

HOST LIQUOR LIABILITY: PCI's nationwide theatre insurance program includes this kind of coverage. Generally speaking, this provides some liability protection as respects your serving of alcohol provided that you do not charge for it and that your state or municipal authorities no not require you to have a license.

You can easily check regarding the license requirements. The trick question involves what is considered "charging for it"? Each state has its own rules, but our experience indicates that you are charging for the alcohol if (1) you attach a separate cost for the drinks (2) the price of your ticket includes drinks (3) you ask for a donation in return for the drinks.

ONE-DAY LIQUOR LICENSE: Many community theatres only serve alcohol once or twice a year at special events. They charge for the drinks and a license is required. In these situations, you should investigate getting a one-day even license from your state liquor control commission. Many times, this requires you to purchase a one-day liquor bond as well. This kind of like buying liquor liability insurance just to cover the special event. Since it is only for one day, the cost is usually reasonable. Many states limit the number of times per year you are allowed to get this kind of limited license.

LIQUOR LIABILITY INSURANCE: If you serve liquor on a regular basis, we strongly advise that you explore adding a liquor liability component to your current insurance package. Whether you can purchase such coverage will depend on the laws of your state. Liquor liability is issued in million dollar increments and whether you need $1,000,000 or more will depend on your particular circumstances. The cost will also vary depending on your particular circumstances.

Alcohol is a perfectly natural and reasonable ingredient of many community theatre functions. Regardless of your particular situation, regardless of your particular insurance circumstances, however, the general rules of conduct apply. You limit access in order to minimize the possibility of someone consuming too much alcohol. You do not serve alcohol to an already intoxicated person. You do not allow an intoxicated person to drive. You never allow underage drinking. In fact, when teenagers attend any theatre function where alcohol is available, we recommend that parents also be present. When it comes to alcohol, responsibilities take precedence over rights every time.