Whether you are planning a wedding, a private party, or even renting out a venue for a work event, special events insurance is crucial when it comes to protecting yourself from potential damages and loss. With events tends to come larger groups of people, which can increase the overall risk associated with hosting, deeming it even more necessary to make sure that everything is properly covered.
But what exactly is special events insurance and how does it work? We will be answering this question amongst various others that will provide you all the information needed to be prepared for when a special event of your own needs to be insured.
What is Special Events Insurance?
– Definition and purpose
– How it protects your investment
– Coverage for cancellations, property damage, and injury
Special events insurance is a type of insurance the purpose of which is to protect your investment through covering costs resulting from cancelation, property damage, or injury of a guest at your private event. Many individuals are unaware of the need for special events insurance until right before the event date, so it is important that you are doing your due diligence to educate clients on what your agency has to offer coverage wise.
Event Cancellation vs. Event Liability Insurance
– Differences between the two types of insurance
-Event Cancellation Insurance: Covers costs associated with canceling the event
– Event Liability Insurance: Covers costs related to property damage or injury to a person during the event
While there are various special event policies available for purchase, the two most common coverages are event cancellation and event liability insurance. Event cancellation specifically focuses on protecting your investment in the case of a last-minute change where the event needs to be either cancelled or rescheduled to a later date. Event liability insurance is tailored to cover costs related specifically to property damage or injury to a third party during an event. Both of these coverages are important purchases due to the risks associated with private events falling under these two categories.
Types of Events Covered
– Vary by insurer
– Importance of understanding what specific events are covered under your policy
– Examples of covered events (weddings, corporate events, festivals, etc.)
The types of events covered under special events insurance vary by insurer, so it is important to be aware when looking for specific coverage. While events such as weddings and anniversary parties tend to always be covered under special events insurance no matter the insurer, there are a few that are not covered based on various factors. One insurer may cover an event involving a pool and a 200+ guest list, but another may only cover the same event without a pool or if the guest list is smaller.
Timing of Purchasing Event Insurance
– Ideal timeline for purchasing
– Before or soon after making deposits/payments for cancellation policy. Needs 7-10 days minimum prior to event
– Up to one day before the event for general liability
– Potential limitations to the purchasing timeline
– Research any restrictions or deadlines specific to insurers
The ideal timeline for purchasing special event insurance varies based on the specific policy and coverage you are needing for your kind of event. For example, when dealing with weather related issues that could potentially result in the need for special event cancellation insurance, the latest you could purchase a policy would be 7-10 days prior to the initial date of the event in precaution of last-minute cancelation. When dealing with special event liability insurance, the latest date of purchase can be up to 24 hours before the event, as long as the policy is processed prior to the start of the event. Potential limitations to the purchasing timeline may vary depending on insurer, so making sure you are aware of what restrictions and deadlines are specific to your policy is crucial.
Vendor and Venue Insurance Considerations
– Importance of knowing if vendors/venues have their own liability insurance
– Coverage gaps in vendor/venue insurance
– How having your own special events insurance ensures comprehensive protection
Vendors and Venues will more likely than not have their own liability insurance policies in place once booked for an event, but it is still important to purchase your own separate special events insurance in order to protect yourself financially from potential coverage gaps.
Liquor Liability
– Necessity if alcohol is served at the event
– Differences between general liability and liquor liability
– General liability does not cover damages or injuries caused by alcohol
– Separate liquor liability policy required
– Limitations of liquor liability
– Only covers third-party damages, not personal damages
Liquor Liability, another kind of special events coverage, is an absolute necessity if alcohol is being served at an event. Although general liability covers damages to property or injuries to individuals during an event, if alcohol is being served a separate coverage, liquor liability, must be purchased in order to protect one from the costs of damage or injury. Liquor liability also comes with the limitation of only covering third-party damage and injury as it is intended to also protect the host from potential claims, so it is important to be aware that any first party damage will not be covered under general or liquor liability insurance.
In conclusion, special events insurance serves as comprehensive protection for both hosts and the attendees of an event against potential damage and injury. By investing in special events insurance, you mitigate risks associated with cancellation, injury, and liability, allowing the focus to be on creating memorable experiences rather than potential claims.