Complete Guide to Event Insurance
You’ve decided to plan an event, a birthday, or maybe a company-wide celebration! But now you’re realizing that there’s a lot more that goes into event planning than you thought. You’ve picked an amazing event space. But the food, music, and linens are just the tip of the iceberg. Then you find out that your event requires insurance?
It might seem like an extravagant requirement, but it’s really a practical consideration that can come in handy for your event. After tons of careful preparation and care, we know you don’t want a random mishap to ruin your party. With event insurance, you can prevent any potential damage that could ruin the party or your pocketbook.
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Accidental damage to the venue
- A guest is injured
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Storms are another natural disaster that forces you to cancel the event
What is Event Insurance?
Event insurance is general liability insurance that covers your event, although you can choose more specific plans based on your needs. General insurance is the most basic of coverage which will include all of the things out of your control, like venue, food, etc.
Generally, most venues require event insurance coverage of $1,000,000, but you will need to check with them, of course, on what their minimum event coverage is.
So you know you absolutely need general liability insurance for your event. It’s necessary and helps cover all the basics. Now we can dive into the special coverage which some events or event venues might require.
Types of Event Insurance
There are a ton of different options for event coverage, but don’t worry! We’ve got you covered (pun intended). We’ll cover each of the following event insurance policies to help you find the perfect one for your event:
- Waiver of subrogation
- Damage Waiver
- Professional liability
- Liquor liability
- Event cancellation
- Workers’ comp
- Third-Party Damage
- Hired Auto Liability
- Terrorism Insurance
Waiver of Subrogation
A waiver of subrogation may be required from you by a venue or a vendor. A waiver of subrogation is to ensure that a vendor isn’t held responsible or requested for compensation by an insurance company, even if they were negligent. These are pretty commonly requested from vendors.
Damage Waiver
A damage waiver may or may not be required of you from a third-party vendor. This is similar to the waiver of subrogation but switched. This waiver ensures that any damage that you cause to their products, whether that be chairs, etc, will be covered by you.
This is to ensure, again, that the third-party is not found liable for any damage. Damage waivers are sometimes optional, especially if you provide proof to the vendor of your third-party insurance, which we will discuss more later in this post!
Professional Liability Insurance
Professional liability insurance is another way of cushioning against possible claims of negligence. If you’re a wedding or party planner/coordinator and your client accuses you of not doing your job properly and losing them money because of that, you could possibly be sued. In that case, having professional liability insurance would be very important in settling the legal fees associated with this.
Liquor Liability Insurance
If you are planning on serving any alcohol or having a bar, liquor liability insurance is a must. This policy will cover anything that has to do with the drinks or the bartenders. The liquor liability policy will provide coverage for a myriad of problems that can come with having a bar at your event, from unknowingly serving a minor to someone drinking far too much and driving home.
Event Cancellation Insurance
This is another really important policy we encourage you to invest in. If the party has to be canceled due to some major and unforeseen circumstances, you will be able to recoup your money rather than losing it all. Be sure to check your coverage and see what circumstances it covers. Most wedding insurance policies cover everything from having to reschedule a DJ or wedding photographer, to having to reschedule the entire event.
Workers Compensation Insurance
Guess what? If you are employing anyone, whether part or full-time, to help you with the event, then you are legally required to buy workers’ compensation for them. If something happened to your employee, even a small slip, it could leave your business vulnerable to lawsuits. In case of any injuries, this policy will protect both the employer and the employee. The medical expenses from any on-the-job injuries will be paid by this policy rather than the employee themselves or by you. Check your policy to ascertain what situations and types of injuries are covered.
Third-Party Damage Insurance
We get it, parties can get wild. That’s why it could be important to get third-party damage insurance, to ensure that any damages made to the venue during your event are covered. From spills to broken chairs, this policy will ensure that you stay in good standing with the event venue and don’t have to pay a ton out of pocket because your guests had too much to drink.
Hired Auto Liability Insurance
If you’re using your own car for business reasons, like planning an event, then you’re typical auto insurance probably won’t cover mishaps associated with it. Or if you’re renting a vehicle for business purposes, the same goes. You will for sure want to look into hired auto liability insurance.
Terrorism Insurance
Okay, this sounds extreme, we know. But stay with us. In the unlikely event that such a terrible event might happen, it is good to know that this insurance policy exists, especially if you’re planning a party in a larger city with more people and activity. Terrorism insurance typically falls into three categories, below:
Limited Terrorism – This policy covers the forced cancellation of an event in a specific area that’s being affected; is often restricted to 50 miles and 50 days of a terrorism event.
Full Terrorism – This policy covers the full extent of a terrorism act and how it might affect your event.
Political Violence and Terrorism – This is a different type of policy that most often includes that following coverage:
- Terrorism
- Civil commotion
- Riot
- War
- Insurrection
- Strikes
- Malicious damage
This is a pretty worthwhile coverage, particularly in big cities or in tumultuous times. Then, your event will be covered, even in case of a riot or other political distress.
Special Event Coverage
Special event coverage is a super helpful policy that blankets an event. It’s also known as a one-day event coverage because it covers many various potential claims for a one-day event. Unfortunately, this type of coverage is typically only available for special parties like weddings or banquets.
Although many public events are not eligible for special event coverage, it might not hurt to at least ask. This type of coverage often includes both alcohol liability and general liability insurance and so it’s a great package deal!
What Events Does Special Event Insurance Cover?
Typically, special event coverage will apply to the following events:
- Weddings
- Anniversary parties
- Baby showers
- Birthday parties
- Religious celebrations
- Annual Staff Parties
What Types of Events Are Not Covered By Special Event Insurance?
Most public events like recitals, exhibits, and other events will not apply for this type of insurance. Whether your company party is able to get special event coverage will need to be a question for your insurance provider, since some may indeed apply.
How Much Does Event Insurance Cost?
Your event insurance price tag will hinge on a lot of different factors. The size and location of your party and the types of insurance above that you choose will all play a role in the overall cost of your insurance.
Usually, you can get a one-day insurance policy anywhere from $100-$200. When you consider just how much you have on the line, from employees to food to the rental chairs, getting event insurance is a super important t0-do.
When Should I Invest in Event Insurance?
So you’re convinced that event insurance is the way and you know exactly what you need for your event! Congrats! You are one step ahead than you were before reading this post. Now, you’ll want to find a good event insurance provider and start talking with an agent. Typically, once you start booking the event venue and the third parties, you will want to buy your insurance, but your agent will know the best time. Event insurance should always be bought prior to two weeks of the event but not as far as two years out from the event.
We hope your event goes just as smoothly as you planned. But just in case, now you’ll be covered no matter what happens at your party.
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