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