There is a lot of goodwill during the holidays but unfortunately there are many people that will sue without a second thought. Its important to reduce your holiday party risks. The best host in the world could get in trouble for an illness brought on by undercooked food or a guest becoming even slightly intoxicated. Hiring a caterer or using a restaurant might help but you could still be liable for food poisoning or a roadside accident after a guest exits the party.
The IIABA (Independent Insurance Agents & Brokers of America) has some tips for homeowners and businesses planning on throwing a holiday party for family & friends or employees.