Special Event Insurance for Small Business

As a business owner, there will likely be a time when you host or organize a special event for employees and/or clients. In doing so, you want to ensure that you and your company are protected against anything that can go wrong during the event. The size of an event can range from small to large and given the scale, you will want to make different preparations to ensure that your event runs smoothly.

When hosting or organizing a special event, you will want to make preparations for live performances, catering, vendors, alcohol services, keynote speakers, so on and so forth. For each of these different aspects, you want a specific type of coverage. Special Events Insurance provides you with the peace of mind in knowing that you and your business are protected and can enjoy the event.

Read on to understand if this insurance is right for you.

What Special Events Insurance Is All About:

What Is Special Events Insurance Coverage?

Special Events Insurance is a type of insurance that provides coverage for the different types of issues that can arise throughout the course of a special event. If you plan to have alcohol at your event, you will want to ensure that you are protected against the many consequences that can occur when people drink. Insurance means that you and your business are covered in the event a guest drinks too much and drives home, causing themselves or someone else bodily injury and/ or damages to vehicles.

If you have hired a caterer or live performer, you will want to make sure you are covered in the event of cancellation and able to find an alternative. Similarly, if the location itself suddenly does not work out, you will need to find another spot for your event and want financial protection for last minute changes. This insurance protects against anything that can go wrong with services and equipment.

What Does Special Events Insurance Cover?

Getting Into the Details…

Rental Coverage

Covers any equipment rented from the venue or rental house. Covers damage to the equipment or replacement cost if a total loss. Example: If the insured rents equipment like speakers, chairs etc. and a guest breaks it the insurance covers the replacement.

Third Party Property Coverage

Protection for the location which is rented for the special event. Example: If a guest spills a drink and damages the floor, the costs associated with fixing the floor will be covered.

Personal Injury Coverage

Protection against claims of slander and libels, false arrest, malicious prosecution, wrongful eviction/wrongful entry, oral or written slander. Example: If allegations against your name or business accrue, the insurance will cover.

Employers Liability Coverage

Protection against bodily injury to employees. Example: If your employee hurts themselves while at the event, you are covered for the costs associated with their medical and surgical treatment.

Vendors Coverage

Covers damage to property of the venue by the contractor. Example: If a contractor like a band damages the floor while setting up their equipment, the cost associated with fixing it will be covered.

Host Liquor Liability

Protection in case of alcohol-related accidents. Example: If a drunk patron fighting, intoxicated customers getting into accidents, inebriated guests destroying properties after the event, host liquor liability covers you.

Cancellation Coverage

Protection in case of the need of cancellation. Example: In the occasion of bad weather or a natural disaster forces and you need to cancel or postpone your event, a special event insurance policy can provide financial protection.

General Liability Coverage

Contractors such as performers, actors etc. covered under General Liability for losses due to bodily injury or own property damage caused by the contractor.__ Example:__ If a contractor hurts themselves or someone else, damages their own property damages, you will be covered for any costs associated.

Umbrella Liability

Additional Coverage Above the standard 1,000/2,000k. Example: Certain venues require a hire coverage limit, umbrella/excess policies allow you to increase the limits to meet the venue requirements.

Hired & Non-Owned Auto

Covers rented vehicles used for the event as well as coverage for vehicles being used to unload equipment. Example: If you are unloading equipment (furniture, sound equipment, etc.) via a building loading dock and damage is done to the dock or equipment this will cover the damage.

Who Is Covered by Special Events Insurance?

Your Business and Employees

If your business is going to host a special event, you know that there is increased risk of bodily injury and property damage. Your business and its employees will be covered for this liability.
Your Other Insurances

Special event policy will be primary, so if something does go wrong no matter how much you plan for it not to, this policy will provide coverage first which will keep your other insurance premiums down.

Do I Need Special Events Insurance?

If you are the host or organizer of an event, investing in Special Events Insurance is critical. The larger the event, the more important obtaining this insurance becomes. You want to ensure that everything going into an event is protected and that if something comes up, you can find a solution quickly and efficiently. Without protection, you may find yourself stuck facing a last-minute obstacle and tasked with going over budget making alternative arrangements.

You want to ensure that things run smoothly for your employees and clients during an event. Additionally, you also want to protect yourself and your business against anything that occurs during the event itself. Someone may drink too much and get into a fight. The caterer might not have warned guests of allergens in the food. Equipment may malfunction and halt important presentations. In every situation, this insurance will come in handy.

This insurance will come in handy if:

You are the host or organizer of a special event and want to protect yourself and your business against unwanted outcomes
You are the host or organizer of a special event and want to protect your guests and your clients against unwanted outcomes
You are the host or organizer of a special event and want to protect the location of your event against damages
You want to ensure your business assets are protected for now and for the future
You want coverage that covers the specific aspects of your individual event including alcohol and food services, live performances, equipment and more.

What Are the “Limits” on an Special Events Insurance Policy?

A special event policy covers specific types of protections in addition to what your General Liability Insurance covers. Each of these protections will have coverage upwards of a given amount. If your policy provides coverage upwards of $1 million, then this will be the limit. As the types of coverage needed for Special Events vary greatly, each will have a different amount. If you choose a policy that does not cover the full value, then you will be protected upwards of a given amount.

In addition to that...

Special Events Insurance can provide your business with the coverage needed to host or organize a successful special event. In doing so, you can focus more on enjoying the event itself than worrying about something going wrong.

You'll Know It's the Right Policy If...

It covers damages to the location where your special event is being hosted
It offers protection for the equipment you use during the event
It protects your business in the event that a guest or anyone else hurts themselves at your event
It offers protection for your business in the event that a guest drinks too much and causes a car accident

What Does Special Events Insurance Not Cover?

Additional Costs

If your policy covers an amount less than the total value of the financial losses associated with Special Events, the remaining amount will not be covered.

How Much Does Special Events Insurance Cost?

The costs associated with Special Events Insurance vary in accordance with the specific policy you have chosen. Each policy is created based on the specific aspects of your event. The scale of the event will be a determinant of the types of services necessary to be contracted. Each type of contractor on site will need a specific type of coverage. Special Events can range from a small private employee or client appreciation party to a corporate funded festival. Some events may have food while others don’t. Events with alcohol have specific liabilities that may require a greater amount of coverage.

Overall, the cost will be contingent upon the type of the insurance policy you choose and how much protection it affords. You may choose a policy that includes one, several or all of the aforementioned protections, each of which have their own costs. Regardless of the protections, you invest in; you will likely find yourself paying a small percentage of that amount in the form of a premium.

Frequently Asked Questions

What does “Named Insured” mean?

Named Insured is the person or entity listed on the policy who will be given the insurance coverage. The named insured will be listed on any claim check that is awarded should there be one. It is usually the person or entity that needs to have the insurance coverage and is often the one paying for it.

Do event planners need insurance?

Event planners absolutely need insurance. An event planner is giving advice and planning things for people or businesses that depend on them. If something goes wrong, the event planner can be sued for their liability, both general and professional.

Do I need Public Liability Insurance for an event?

Not only do most venues require you to have Liability insurance if you are having a public or private event, but it is a critical insurance policy to have. Due to the number of people attending your event, the risk that something unfortunate and unforeseen will happen is higher than normal. Even more so if you are serving or allowing alcohol at your event.

Do you need more coverage?

Directors & Officers (D&O)

The directors and officers of a privately-held company are at risk from suits by a variety of different people, such as customers, competitors, suppliers and government agencies. However, the greatest number of lawsuits against directors and officers come from the employees of a company itself. D&O Insurance covers your management team, should things go south.

Employment Practices Liability

EPLI is a liability insurance that covers wrongful acts, such as wrongful termination, discrimination, sexual harassment and retaliation. This insurance may also protect your business from other employee-related claims, such as deprivation of a career opportunity, defamation, invasion of privacy, failure to promote, and negligent evaluation.

Inland Marine

This insurance protects goods in transit on land, as well as the property of others that is on your premises or being transported from your premises. An Inland Marine policy is crucial if your business ships goods of any kind on land.

Product Liability

This insurance covers a business should they need to recall one of their products. Product Recall Insurance will cover the cost of getting a defective product back under the control of the manufacturer or merchandiser that would be held responsible for bodily injury or property damage due to the existence of the product.

Cyber Liability

This insurance covers a company in the event of a data breach in which sensitive customer information is leaked. These policies cover expenses, such as notification costs, credit monitoring, fines and penalties, defense costs, and loss resulting from identify theft.

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