Event insurance helps shield you from liability just in case somebody injures themselves or damages the venue’s property. Most insurers conjointly supply cancellation coverage, particularly for weddings, that reimburses you for any non-refundable lost deposits if you want to cancel or reschedule the event.
What is Considered a Special Event?
Special Event Insurance is a policy that covers your business assets when you host activities that fall are not considered under general liability coverage. This might include a work Christmas party or fundraiser where alcohol is served. Special Event insurance is a specialty policy designed to indemnify the named insured and/or host/receiver from sure forms of claims arising from accidents throughout the event. Subject to the precise coverage terms, conditions and exclusions, it offers protection for the host/receiver for harm. Damages caused by a guest or seller, bodily injury to guests, and alcohol-related accidents.
Event Endorsements
Endorsements specify the details of the event and they help the insurer understand the intent of the event and classify the risk accordingly. You may need all or some of the following depending on the event:
Waiver of Subrogation.
Liquor Liability Insurance.
Hired Auto Liability Insurance.
Terrorism Insurance.
Special Event Coverage.
Cancellation Insurance.
Waiver of Subrogation
The venue often requires a waiver of subrogation in the event that you, the insured, file a claim. The endorsement releases your right (and your insurance carrier’s) as the insured to subrogate losses to the those listed on the endorsement.
Liquor Liability Insurance
This is needed if there is ANY alcohol at the event. It does not matter if the alcohol is purchased or brought by your guests or members. As a host you are still responsible for allowing someone to leave your event intoxicated EVEN if they brought their own alcohol. It is often an affordable coverage and can save yourself the misery throughout the event of a claim.
Hired and Non-owned Auto
Hired Auto covers you or your employees when driving a rental car.
Non-owned Auto covers when you allow you or your employees to drive on behalf of the event in a vehicle that is not covered under the events commercial auto policy. This policy will implement coverage after the personal auto policy’s limit is reached.
Terrorism Insurance
Terrorism is defined as violent criminal acts caused by individuals or groups of people based upon racial, religious, political, social and environmental beliefs. This is a coverage that is insistently growing due to the increasing number of mass-shootings and public hate.
Cancellation Insurance
Event cancellation insurance needs to be on every checklist. When planning a one-day event, conference or trade show you want to be covered should you be faced with a cancellation. The pandemic caused numerous events to be cancelled but there are other unexpected risks; hurricanes, air traffic controller strikes, or the venue is closed due to infrastructure failure.
No one could have expected the devastating consequences the COVID-19 pandemic enforced upon the event industry. We now know that one of the most important questions for event insurance is – Does my policy cover cancellations, and does that include biological causes and epidemics? The answer is not a simple one — because event policies typically do not cover cancellation unless you specifically indicate coverage to cover epidemics and biological causes.
When planning your event, here’s some questions that you need to consider to make sure you are purchasing proper coverages:
- Does my venue require a minimum coverage?
Typically, the venue will require a minimum amount of insurance required to rent their space. - What if I have to cancel the event?
You will need to buy an additional layer of coverage for event cancellation. This protects you from costs incurred and deposits lost if you have to call off your event because of something beyond your control. *Tip -This does not include low ticket sales! - What is typically excluded from an event policy?
Biological events are often excluded from coverage which left events cancelled due to the coronavirus losing some or all of their money, even if they purchased cancellation coverage. Depending upon your location and time of year, you might want to consider bad weather or other hazards that would require you to cancel your event. - Ask what else could be excluded in a policy?
-A mass shooting might be excluded from the policy without the terrorism endorsement.
-labor disputes
-or some other catastrophe. - Think twice about turning down extra insurance, but also avoid over-insuring.
Being protected sets your mind at ease, but you can’t protect yourself from everything. By the time you get through all the possible coverages and then ask about meteor strikes, you might take a step back and ask — what am I trying to cover, what is the real risk and what is at stake? Only you and your team are in a position to say what is worth insuring in your particular case.
