What Is Event Insurance? Do You Need It?

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As an event planner and/or event organizer, you are fully aware that no event ever goes 100% according to plan. There are always hiccups and disasters along the way. Moreover, it is part of an event planner’s job to always be ready to adapt and pivot. And the best way to be ready for anything that happens is with event insurance.

It’s crucial for event planners to protect themselves from the possibility of incidents and accidents during an event. Not only can these accidents cause significant financial damages, but some of them might even lead to legal issues. That could translate into even more costs. So be prepared and protected by getting the right event insurance.

What Is Event Insurance?

Event insurance (sometimes called “special event insurance”) is a specialized type of insurance policy that businesses or individuals can purchase to cover potential liabilities when hosting and organizing an event.

Why Should You Get Event Insurance?

This type of coverage is essential for event organizers and event planner businesses. It is also a good idea for any businesses that would want to host an event for their staff, clients, customers, or other parties. Businesses that would like to sponsor events might also benefit from event insurance.

Here are some key benefits from being insured in this way:

Worst-case scenarios: This type of insurance will protect your businesses in accidents. For example, if any of your attendees sustain injuries and worse, fatalities, this type of insurance with liability coverage would protect you from a potentially expensive lawsuit.
Food/beverage issues: It’s common to serve food and drinks during events. There are always possibilities of your guests suffering from food poisoning, allergic reactions, and other issues. It might not be your direct fault as an event organizer, but your guest could file a lawsuit against you. Event insurance will keep you protected.

Liquor liability: If you are serving alcoholic beverages at your event, you need event insurance coverage to protect yourself and/or your business from incidents. For example, if your staff should accidentally serve an alcoholic drink to a minor this type of insurance would protect you. You would also be covered if one of your guests gets too drunk during the event.
Property/equipment damage: This is more common during events than you might thing. Event insurance coverage would protect you from the costs.
Cancellation/postponement: You would be protected if, for example, performers or speakers back out at the last minute or when the venue is suddenly unavailable.

What Is Included in Event Insurance?

Different insurance companies might offer different coverage policies in their packages. Some insurance companies might also allow a customized policy featuring specific coverages that suit your needs.

However, here are some of the most common coverage policies this type of insurance typically includes:

1. Rental Coverage

This policy would protect you from potential damage and/or replacement costs of all equipment you rented for the event. This covers incidents when your guest, your team member, or yourself are found responsible for rental equipment and rental property damage. It may also cover damage to the venue of the event, depending on the insurance company.

2. Cancellation/Postponement Coverage

This covers yourself and your business from expenses or loss due to the cancellation or postponement of your event. You will receive compensation for loss due to event cancellation due to bad weather and potential natural disasters.

This type of coverage can also cover cases when your performers suddenly become unreachable prior to the event. In these cases, you’ll typically have coverage for the deposit you’ve made and also for extra costs of booking another performer.

In worst-case scenarios where your event is postponed or canceled for one reason or another, this insurance coverage may cover the costs of re-booking the venue and other expenses.

3. Auto Insurance Coverage

If you rent any vehicle for the event, for example, for transporting equipment to and from the venue, this insurance coverage can offer protection for these vehicles during the event. For instance, when the vehicle is totaled when delivering your equipment to the venue you will typically be covered.

4. General Liability

This is a common type of policy that covers any incidents that may be caused by any attendees during the event. For example, if a guest’s action causes property damage, this liability coverage may cover the repair/replacement costs.

5. Host Liquor Liability Coverage

As briefly discussed above, event insurance would protect your business when guests or other parties suffer injuries due to intoxication. It may also cover the costs associated with auto accidents and/or property damage.

What Are Some Key Considerations When Purchasing Event Insurance?

The cost of the event insurance varies depending on the insurance company and how much protection you choose according to your needs. The greater the perceived risks of an event, the greater amount of coverage you might need.

However, here are some actionable tips you can use when purchasing your event insurance:

If you’ve decided that you need event insurance coverage, then you should get it as soon as possible after you start making any deposits for your event.
Check whether your business already has coverage with some policies to avoid any overlap. For example, you might have already purchased general liability insurance.
Check whether your event venue and your vendors already have liability coverage that might protect some of your liabilities. This can help you reduce the coverage cost.
Check carefully what will and won’t be covered by the event insurance policy.

Closing Thoughts

While an event insurance policy can protect you and/or your business from various potential liabilities when organizing an event, it’s always better to prevent these liabilities in the first place.

Making sure you are planning and organizing your event perfectly to avoid all the worst-case scenarios is essential in protecting yourself and your business from potential liabilities. This is where a comprehensive event management system can help you in organizing a safe, secure, and successful event.