Watching television shows like the Real Housewives and My Sweet Sixteen can make us envious of parties and fun events. Whether it be a birthday party, concert, sporting event, or business function we like to make sure it is enjoyable by all of our guests. Whenever there is an increased number of people at an event that you are hosting, or are responsible for, it is critical that you purchase Special Event Insurance. Special Event Liability is a policy that will protect you from lawsuits stemming from bodily injury or property damage in conjunction with your event.
Anyone who is hosting an event that is outside of their normal day-to-day operations should have a Special Event Insurance policy. Also, most venues will require that you provide them with proof of insurance for the event. Often, specific events are excluded within your homeowners or General Liability policy. Even if it is not, would you want to have your claims history impacted by a claim that results from a one-day event? Surely not.
In addition to the exclusions and claims impact on your other insurance policies, some reasons to have an Event Insurance Policy include but are not limited to:
Wedding insurance policies are slightly different from a regular Special Event insurance policy in that there are specific wedding coverages available. This includes cancellation or postponement, Liquor Liability insurance, and possibly theft of gifts. If you are having or hosting a wedding, either policy will work, just be aware of your risks and needs before you decide.
The limits of your Special Event policy will depend on the amount of risk associated with it. For example, an event involving children will have a little higher risk than a company picnic for just employees. Standard limits start at $1,000,000 per occurrence and can go up from there if needed. As always, it is essential to read your policy, so you know the exclusions and inclusions. Some exclusions you should be aware of may include: Certain Participants - Sometimes independent contractors, vendors, and employees are excluded and would have to have their own insurance, or be covered elsewhere. Abuse - If you are having an event involving children, be aware that there will not be any abuse and molestation coverage and it is advised that you purchase a separate policy for this. Liquor Liability - This will be excluded under the General Liability portion of the Event policy but can usually be purchased as an add-on.
While each insurance company is going to have different coverage options and prices, you can plan on paying an average price of $200. Of course, coverage limits, claims history, the number of guests and location will all impact this price. Talk with your independent agent to ensure that you are getting the proper insurance coverage for a reasonable price.