Will the summer season in full swing you may be planning on hosting an event or festival to showcase your business, if that’s the case you definitely need to make sure you have the right insurance. Special Event insurance is a type of insurance that businesses or individuals can purchase to cover liabilities when organizing a specific event. This type of insurance policy serves as protection against several issues that may arise before or during the event.
Why Do You Need Special Event Coverage?
As a business owner, there are several reasons why you would want to host a special event for your staff and/or clients, or to sponsor events like conferences, carnivals, galas, exhibitions, etc. If this need arises, event insurance coverage is essential to ensure that your company is protected against event liability.
No matter how seasoned you are at hosting events, you’ll face a lot of risk before and during an event, many of which will be out of your control. For example,if you own a venue and your clients cancels or postpones their event. There are even worse case scenarios where a client sustains bodily injury due to a slip and fall or their is property damage during an event. This can generate claims against the event planner, host or sponsors. To protect yourself and clients from an expensive lawsuit, you should get liability coverage such as Special Event insurance.
Here are more reasons why you need special event coverage:
- Liquor Liability: If you’re serving alcoholic beverages at your event or you are planning an event with the intent of selling alcohol, you need to be protected against alcohol-related accidents. A guest could have too much to drink and get into a fight that may cause injuries or property damage. A Liquor Liability coverage, which is included in a Special Event policy, will protect the host or planner against any financial losses from a claim.
- Bad Catering Services: Food or snacks are often served at many events, but what if someone has an allergic reaction because your catering didn’t warn the guests of potential allergens? Your guests could file a lawsuit against you, leading to significant damages, both to your reputation and your wallet. But Special Events insurance will keep you protected.
- Equipment Malfunction: Sound systems, projectors or any other type of equipment could break or fall during your event.
- Damages at the Venue: A group of rowdy guests may cause damage to the property at the venue of the event.
- Cancellation or postponement: Factors may arise causing your event to be cancelled or postponed. Guest speakers or live performers may also backout at the last minute.
If you are planning, hosting or sponsoring an event and you don’t have General Liability insurance, then Special Events Insurance is very important. You need to be covered against mishaps that could occur as a result of the event. This insurance ensures you have financial coverage in the event that your event gets cancelled, even after preparations have been made.
What’s Included in Special Events Insurance?
Depending on the specific coverage that suits your needs, each policy offers coverage for different kinds of situations to protect against unforeseen circumstances. There are various types of Special Event coverage, some of which are:
- Cancellation coverage: This event insurance ensures you are compensated for loss or expenses due to the cancellation or postponement of your event. It also offers protection against event cancellation due to natural disasters or bad weather. If your wedding photographer suddenly becomes unreachable prior to your wedding, you may likely receive cover for the deposit you’ve made and unforeseen charges of booking another photographer. If your event was unavoidably rescheduled due to sudden illness of a guest speaker, this insurance cover may help cover financial costs associated with re-booking the venue, and any other arrangements.
- Rental Coverage: This covers the damage or replacement cost of all equipment rented for the event in case you or your guests are found responsible for rental property damage. It may also cover damage to the venue of the event.
- Host Liquor Liability coverage: Some guests or third party may incur bodily injury, property damage or auto accidents as a result of having too much to drink at your event. This coverage may offer Auto insurance or protection against accidents related to the consumption of alcoholic beverages at your event.
- Auto Insurance coverage: Vehicles may have been rented to bring guests or equipment to and from the venue. This coverage may offer protection for all rented vehicles used for the event.
- General Liability coverage: This type of policy covers incidents that may be caused by guests at the event. For example, if a guest’s action causes a waiter to trip, this liability coverage may cover medical expenses resulting from bodily injury.
However, if your insurance policy covers a lesser amount than the total value of the financial loss associated with your special event, the outstanding amount will not be covered. Ensure you check your policy to know what types of situations you’ll get protection for.
Examples of the events that Special Event insurance covers include private functions like weddings, birthday or anniversary celebrations, baby showers and religious functions. Corporate functions such as galas, conferences, and fundraisers may also be qualified. You can contact your insurance agent to know the kind of events that are eligible for special event coverage.
How Much Will a Policy Cost?
The cost of Special Event insurance depends largely on your choice of insurance policy and how much protection you choose. A specific event may have more risks that may require a greater amount of coverage. This may require that you choose one or all of the aforementioned policies, each having their own costs. Regardless of the event insurance cover you decide to invest in; you are likely paying a small percentage of that amount in the form of a premium.
What Other Things Should I Consider before Purchasing Special Event insurance?
Here are useful tips to put into consideration before purchasing your Special Event insurance:
- If you need special event coverage, purchase one immediately you start planning or making deposits for your event.
- Find out beforehand if there is any time restriction on when to purchase an event insurance policy from your insurance agent.
- Find out if you already have coverage on your event through liability insurance, auto insurance, or any other insurance type.
- Find out if your vendors and event venue has liability coverage.
- Find out what will and won’t be covered by the policy.
Your special event may turn out perfectly, just like you’d hoped, however having Special Event insurance will help keep your mind off what could go wrong and give you room to enjoy your special occasion.