HOA Liability

Brian:

Check with your insurance company, if it is an HOA event it should be covered by HOA insurance.

This is why I never used HOA funds to fund ANY social event. My suggestion is to instead see if you can have a neighborhood party by having the residents pitch-in either money or food. I am sure you have enough "Grill-masters" ready at a drop of a hat to show their skills. If someone doesn't want to cook, simply request a $10 donation to apply to the overall costs of the event.
I know many here may disagree with NOT using HOA funds for social events. There arguments may be very valid. However, a HOA budget is designed strictly for maintenance, emergencies, insurance, and updgrades. Parties don't fit into this. What the HOA brings in it should spend out if it is a non-profit corporation.
I know using HOA funds would NEVER fly with my HOA. The homeowner's would feel their dues money was being "wasted" especially if your HOA is facing big expenditures/projects. I am sure you've gone to your own company picnic and thought " If they would use this money for raises instead of a picnic, many more people would benefit". Similar to having parties in a HOA environment. The HOA is a corporation/business.
I did give plenty of neighborhood parties when I was president. Don't get me wrong. However, they were "pot-luck" and shared amongst the members interested in such events. It wasn't fair to have other members who didn't want to participate to use their money to support such events. That's what would happen if you do use HOA funds.

Brian:

Your insurance should cover liability on your common areas, an umbrella policy, and D & O (Directors and Officers). These 3 polices would cover all aspects of the HOA. Some insurance companies even have a "Host" inclusion, that if the HOA hosted a party and someone left and hurt themselves the policy would cover it. It is important you speak with your insurance agent making sure you are adequately covered.

Brian:

Paul has a good idea, it should be minimal expense to cover people for this event. I happen to be one who strongly disagrees with Melissa on this point. I think one of the purposes of an HOA is to foster relationships with our neighbors. It gives people an opportunity to see neighbors, have a hotdog, chat, do whatever that normally wouldn't happen. Less than 1% of our budget is set aside for two annual events and it has been well received by our membership. Often times we get so wrapped up in our own lives that we don't converse with our neighbors unless they are right next door or we run into them getting the mail. This gives you that opportunity and quite frankly it isn't that expensive to buy some hamburgers and hotdogs and get an inflatable. We did it for less than $250 last fall and our neighborhood has 167 homes.

The same things goes where I work, there are many people I don't ever see but the semi-annual parties gives us an opportunity to meet them and their families and get to know them better.