Third Party Vendors

Short Description

Third party vendors are for profit business who are licensed and insured and not associated with the chapter in any way that are responsible for identification checks and distribution of beer and alcohol. Third party vendors can also be used for Security purposes.

Target Audience

Risk Management Advisor
Risk Management Chairman
Social Chairman

Borradaile Challenge or Area of Focus

Risk Management

Third Party Vendors Must

  • Be properly licensed by the appropriate local and state authority. This may involve both a liquor license and a temporary license to sell on the premises where the function is to be held.
  • Be properly insured with a minimum of $1,000,000 of general liability insurance, evidenced by a properly completed Certificate of Insurance prepared by the insurance provider.
    • The above “Certificate of Insurance” must also show evidence that the vendor has, as part of his insurance coverage, “off premise liquor liability coverage and non-owned and hired auto coverage.”
    • The Additional Insured included on the Certificate of Insurance MUST as a minimum, include:
      • The______Chapter of Phi Kappa Tau
      • The name of your house corporation
      • The Phi Kappa Tau Fraternity, Inc.
      • The Phi Kappa Tau Foundation
  • Agree in writing to cash sales only, collected by the vendor, during the function.
  • Assume in writing all the responsibilities that any other purveyor of alcoholic beverages would assume in the normal course of business, including but not limited to:
    • Checking identification cards upon entry
    • Not serving minors
    • Not serving individuals that appear to be intoxicated
    • Maintaining absolute control of ALL alcoholic containers present
    • Collecting all remaining alcohol at the end of a function (no excess alcohol—opened or unopened—is to be given, sold or furnished to the chapter). Vendor MUST remove all alcohol from the premises
    • Require alcohol not be served one hour before closing.

Things to Keep in Mind

  • Never agree to sign a contract that has a “guarantee” (i.e. your chapter guarantees $500 in bar sales or you make up the difference with chapter funds)
  • The venue must be empty when you come and they should not allow anyone into the building except people who appear on the chapter’s guest list.
  • All risk management policies must be followed, and the chapter must have members that agree to remain substance free for the evening.
  • Though having an event at a 3rd Party Vendor greatly reduces your liability, it does not relieve you of liability. As always your insurance covers you only when you are following policies.

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