Special events come in many forms, including weddings, amusement rides, festivals, auto races, rodeos, Quinceañeras, Mitzvahs, athletic contests, and parades. Regardless of the kind of event you organize, it's vulnerable to many types of losses if a problem arises, such as lawsuits, guest injuries, property damage, and more. Special event insurance can provide the reimbursement you need if you must postpone or reschedule your event due to a covered cause.
Luckily, a local independent insurance agent can help you find the right event liability insurance for vendors, venues, or event organizers. They'll get you matched to the ideal amount of event insurance coverage for the appropriate duration. But first, here's a breakdown of event liability insurance, what it covers, why it's necessary, and more.
Key Takeaways - Special Event Insurance
- Special event insurance, or event liability insurance, is required for many different types of events, including concerts, weddings, parties, parades, and more.
- Event insurance can reimburse an event host or organizer for many potential disasters that can arise from an event, such as lawsuits, injuries to attendees, venue property damage, and more.
- Many venues require proof of event insurance before you'll be allowed to host a function there.
- The average cost of event insurance ranges from $75 to $235, but the cost of your policy will depend on the specifics of your event.
- Working with an independent insurance agent is strongly recommended, as they can tailor coverage to your specific event and its unique exposures.
What Is Special Event Insurance?
Also known as event liability insurance, event cancellation insurance, liability insurance for events, or simply event insurance, this coverage is designed to protect against losses that can occur if a function must be postponed or canceled.
Event cancellation coverage can reimburse you for deposits you made for an event if you have to cancel or postpone it, such as fees to hold a venue or book a photographer. Functions must have been canceled or postponed due to a covered cause, such as extreme weather, for special event insurance to reimburse you.
A special event can be defined as a specific type of gathering with various potential exposures, such as bodily injury or an accident involving an attendee. Special events come with various risks that can be addressed by event insurance, such as the following:
- Automobile liability
- Liquor liability
- Aircraft liability
- Bodily injury liability
- Spectator liability
- Products liability
- General premises liability and public liability
- Animal liability
- Liability for rented or loaned property
- Damage to owned property
- Medical malpractice if you have a first aid station
Standard personal or commercial policies will not cover all of these exposures. In most cases, you'll need event liability insurance specifically tailored to cover your gathering. An independent insurance agent can help you compare quotes from multiple companies to find the private event insurance that's right for you at a price that works within your budget.
What Types of Functions Are Covered?
Event liability insurance can cover several kinds of events. Many types of functions only last for one day, thus requiring just a single-day event insurance policy. However, you can buy special event insurance regardless of the duration of your event.
Special event insurance can reimburse you for many expenses that occur at any of the following types of functions:
- Weddings
- Anniversary parties
- Mitzvahs
- Corporate events
- Debutante parties
- Quinceañeras
- Engagement parties
- Auto races
- Business meetings
- Festivals
- Non-profit functions
- Rodeos
- Retirement parties
- Parades
Short-term event insurance can be extremely beneficial if you host or organize any of these functions. In the event of an event cancellation or postponement, special event insurance can help you recoup losses from any of your otherwise non-refundable deposits, such as for a caterer, photographer, or florist.
What Types of Functions Are Not Covered?
Special event insurance may not apply to every type of function. It can be more difficult to find event cancellation coverage for the following types of functions:
- Sporting events
- Gun shows
- Bachelor and bachelorette parties
- Large events with more than 500 attendees
- Animal shows
- Color runs
- Events held at remote locations
If you'll be organizing or hosting any of these events, be sure to ask an independent insurance agent if specialized coverage is available.
What Does Event Liability Insurance Cover?
Special event coverage provides protection against losses related to events that must be rescheduled, postponed, or canceled due to various causes, such as extreme weather events.
These policies can reimburse you for lost deposits and other costs related to hosting and organizing these events. Your policy can reimburse you for losses extending up to its coverage limits after you've paid your deductible.
An event cancellation policy can reimburse you for any of the following expenses:
- Lost or stolen special gifts
- Lost or damaged attire, such as wedding rings
- Damaged files, such as photos or videos
- Vendor no-shows
The liability coverage portion of event liability insurance can reimburse you for lawsuit and legal defense costs if you're sued for bodily injuries or personal property damage to attendees that occurs because of your event. Events that serve alcohol have a greater need for this coverage, as intoxicated guests are often more likely to cause harm to others.
You'll need to be sure your policy includes liquor liability coverage or alcohol liability insurance for events if you'll be serving alcohol. Special event insurance coverage can also pay for property damage to the venue caused by event attendees or your company and its staff.
In many cases, the venue in which you plan to host your event will require you to secure a policy before you're able to make a reservation. The owner of the venue in which you host your event may want to be named as an additional insured on the event insurance policy.
Who Needs Event Liability Insurance?
Many venues, vendors, and event organizers can benefit from special event insurance or corporate event insurance. You might need a policy if you are any of the following:
- Wedding planner
- Corporate event host
- Festival or concert organizer
- Nonprofit that hosts fundraisers
- Trade show or conference organizer
- Private party organizer at rented venues
An independent insurance agent can help you get set up with the right type of special event insurance for your unique business or function, such as wedding liability insurance, concert insurance, fundraiser liability insurance, or party insurance coverage.
When Should I Buy Special Event Insurance?
Plan to buy your special event insurance policy right away once you've made any deposits for your upcoming function. Problems can arise at any time before your event occurs.
Vendor and venue renters may need to purchase special event insurance before they're even allowed to book. In most cases, it's required to obtain event liability coverage at least the day before your event and an event cancellation insurance policy at least 14 days before your function is scheduled, although coverage is usually available to buy up to two years in advance.
How Much Does Event Liability Insurance Cost?
The cost of special event insurance often ranges from $75 to $235 for a policy with $500,000 in liability coverage. However, the longer the event, the more activities you plan, and the greater the overall risks associated with the function, the higher the price for special event insurance will be.
Event cancellation insurance can be found for as little as $130, but it can be much more expensive depending on the nature of your function. The cost of your special event insurance can be based on the following factors:
- The type, length, and location of the event
- The type of activities planned
- The number of participants expected
- The provisions for crowd control
- Whether liquor will be served or sold
- The presence of amusement rides and other risky activities
- Whether vehicles or other motorized equipment will be involved
- Whether food will be provided or sold
- The presence of outside vendors
- The venue's coverage requirements
Work with a local independent insurance agent to find affordable event insurance near you.
Special Event Liability Insurance for Weddings and Concerts
Weddings and concerts are among the most common special events that need coverage. Private church weddings don't typically require special event insurance due to the low presence of various risk factors. However, special event insurance is often necessary for more elaborate weddings, such as those held outdoors.
Concerts can vary from small, one-time events to large, elaborate affairs involving thousands of spectators and risky elements like fireworks. Large events can also involve issues related to crowd control.
Having event liability insurance for concerts can protect you against many potential losses and liability claims. An independent insurance agent can help you find the right kind of event insurance for a concert or wedding.
Venue Requirements for Event Liability Insurance
Venues often require proof of insurance before you can host or organize an event. This helps the venue be assured that your business will be able to pay for any damage, lawsuits, or other losses that may occur.
You might be required to add the venue as an additional insured on your event insurance policy. An independent insurance agent can help you obtain a certificate of insurance (COI) for events and help your business comply with event venue insurance requirements.
How to Get Event Liability Insurance
You can buy event liability insurance from many different insurance companies, brokers, or online event insurance providers. An independent insurance agent can help you compare event liability coverage options and event insurance quotes from several carriers in your area to find the right policy. They'll help walk you through the entire process and equip you with the ideal amount of coverage for your special event.
Your agent knows how to match the right policy to the type of event you're hosting or organizing. They can review event insurance exclusions with you and help you understand the policy's coverage limits. Even better, your agent can help you save money on your premiums by bundling your policy with another type of coverage through the same carrier or by finding other discounts to help you get cheap event liability insurance.
An Independent Insurance Agent Can Help You Find Event Liability Insurance
Special events come in all shapes and sizes, but one thing they have in common is the risk of injuries or property damage. A special event insurance policy is a must-have to protect you from the cost of lost deposits, lawsuits, and other risks that can occur at your event or if your function is canceled or rescheduled.
An independent insurance agent can shop and compare event insurance quotes for you and provide you with results that offer the best overall blend of coverage and cost. They'll help you protect your event with the right insurance. And down the road, your agent will still be there to help you file claims or get additional coverage as necessary.
FAQs About Special Event Insurance
What is event client liability insurance?
Special event insurance may also sometimes be referred to as event client liability insurance. These policies can provide reimbursement for lost deposits if you have to cancel or postpone an event, as well as cover lawsuit costs if you're sued for an incident that occurs at your event.
What's not covered by event liability insurance?
Event liability insurance comes with various exclusions, which can sometimes include non-refundable deposits or cancellation fees. Make sure to review your specific policy to be certain of what's not covered.
Does event insurance cover cancellations due to pandemics?
Many event insurance policies do not cover event cancellations, postponements, or reschedules due to pandemics, epidemics, or other outbreaks of infectious disease. Both actual and perceived outbreak threats are typically not covered.
What is the difference between event insurance and event liability insurance?
There's no difference between these two types of coverage. You may hear special event insurance referred to by many different names, including event insurance or event liability insurance. Still, certain policies may have more specific names, such as wedding insurance or concert insurance.
Is event liability insurance required by law?
No, event liability insurance isn't legally required, but many venues require businesses to have coverage.
Does event liability insurance cover cancellation?
Yes, many event liability insurance policies can cover event cancellations. Ask an independent insurance agent to help you find a policy that includes cancellation coverage.
How soon before an event should I buy liability insurance?
Right away, once you've made any deposits for your upcoming function. Problems can arise at any time before your event occurs.
Can I get event liability insurance for a one-day event?
Yes, event liability insurance is available for single-day events. An independent insurance agent can help you find coverage.
Does it cover vendors or only organizers?
Event insurance can cover vendors, event organizers, and venues.
Sources
https://www.allstate.com/event-insurance
https://www.geico.com/event-insurance/
