Updated: Jun 15, 2021
Every great event planner (and event host) needs to be able to stay calm, cool, and collected in the high-pressure situation of running an event.
No matter how much planning, preparation, and risk management you do leading up to an event, you can not control inevitable accidents and unforeseeable circumstances (like your event being canceled due to a global pandemic!). What you can do is be best prepared to handle the curveballs and minimize negative financial implications.
When you get a bunch of people in a space, you run the chance of being faced with liability risks that come with potential damage to property, bodily injury, and more.
Event insurance can help protect individuals and businesses from liability and is NOT expensive, in fact, it is one of the least expensive line items in the budget. However, over 80% of event hosts do not carry this coverage.
Perhaps this is because of confusion and/or lack of awareness. So, I’ve broken it down for you!
What Is Event Insurance?
Event Insurance is a short-term general liability policy designed to protect the event holder from most claims of guest or spectator injury or property damage arising from the event. The policy is only in place through-out the duration of your event.
How does event insurance work?
Event insurance works to protect the event organizer (host) from claims made against them due to injury to guests or damage to the venue. Event insurance can even cover the cost of the event in the chance that it gets canceled due to circumstances outside of your control.
Two Types of Coverage:
Event Cancellation Coverage
Event cancellation coverage may help reimburse you for lost deposits and other fees — up to your coverage limit — should something unexpected force you to delay or cancel your function (COVID?!).
This coverage applies not only to the venue, it also can apply to your vendors as well. Suppose your photographer cancels at the last minute, you'll likely be covered for the cost of the lost deposit and potentially any unexpected charges from having to book another photographer at the last minute.
Event Liability Coverage
Event liability coverage may help protect you if you're found responsible for property damage or an injury caused during your event, and is in the fine print of most venue contracts. If the AV team you hired damages a wall with their gear, for example, this coverage may help pay for repairs. Some policies also cover incidents caused by your guests. So, if someone leaves a bag in the aisle, and another attendee or venue staff trips as they walk by, event liability coverage may help pay for medical expenses resulting from the injury.
Why is event insurance important?
The last thing you need to be worrying about on event day is being sued or held liable for injury or damage. Without event insurance, these claims could otherwise cause you or your business a huge financial hardship. If a guest slips and falls while attending your event, they likely won’t hesitate to put the financial responsibility on you. Without Event Liability Insurance, you could have to pay their medical expenses out of your own pocket. Likewise, if there is accidental damage to the property, the venue will not hesitate to hold you financially responsible.
How much does it cost for event insurance?
The cost of event insurance is dependent on the type and size of the event. You should expect to spend at least a couple hundred dollars on event insurance for each day of the event.
When should I purchase event insurance?
It's a good idea to purchase special event insurance as soon as you start making deposits or purchases for your event. There may also be restrictions on when you can purchase coverage — often no later than two weeks before your event but no sooner than two years prior.
What else should I know?
Make sure that your venue and vendors have their own liability insurance.
Find out what coverage you may have already through home, auto, or liability insurance as well as credit cards.
Be crystal clear on what is, and is not covered by the policy.
Choose an insurer that is licensed in your state.
A coverage limit will apply.
Keep in mind that while event liability coverage may help protect equipment that you rent from your venue, it likely will not pay for damage to equipment rented from a third-party company that's not associated with the venue.
The unforeseen can happen despite the best possible planning. Having insurance in your back pockets means that you are prepared and protected—no matter the unwanted circumstances impacting your business and events.
Hopefully, you will never have to make a claim, but with your insurance in order, you can focus without worry on the fun stuff - creating an unforgettable experience for your guests!
Have an event in the pipeline and don’t know where to begin with protecting yourself on event-day? Book your complimentary strategy call with me here to get the step-by-step.