Answers to the Five Most Asked Questions About Event Insurance
In partnership with Event Helper
What is event insurance?
Today many venues are requiring their event organizers to purchase Event Liability Insurance. By requiring this, they are doing their event organizers a huge favor. Event Liability Insurance is intended to protect the event organizer (venue renter) from having to pay out of their own pocket for most claims of injury to guests or property damage due to their event. Event Liability is the most common type of Event Insurance.
Another type of Event Insurance is Event Cancellation/Postponement Insurance. It could pay the organizer back for non-refundable expenses if they are forced to cancel or postpone the event due to reasons unknown prior to purchase or beyond their control like hurricanes, fire, unexpected illness. They could even get the venue’s non-refundable deposit reimbursed.
How does event insurance work?
If you’re a venue renting out your gorgeous space for events, or an event planner helping a couple plan their big day, you may want to consider assisting your clients in obtaining coverage. This can help if one of their guests slips and falls or someone drags a table across the venue's beautiful hardwood floors. For venues, the best practice is to talk to your insurance agent for your business insurance to see what kind of insurance you should require from your renters or any vendor coming on to your property to maximize your protection.
Your venue’s insurance is there to protect you if you, the venue, are negligent and cause injury or damage. If you allow an event at your venue but fail to properly light the pathways and someone slips and falls, that would be considered your liability and should be covered by your insurance. But, if the event organizer chooses to turn off all the lights to surprise their guests causing someone to trip, that would be considered their liability and should be covered by their insurance. If the claim is significant enough, this could create a large financial burden for the event organizers if they don’t have Event Liability Insurance.
How does this benefit the venue?
Your venue insurance likely will not pay on a claim for injury or damage caused by an event organizer or a vendor on your property. And every time you file a claim on your own insurance, you run the risk of premium increases or even cancellation. If the event organizer causes damage or guest injury, their insurance should provide coverage. If a vendor hired by the event organizer causes damage, that vendor’s insurance should provide coverage.
Another benefit is that you could be entitled to defense under the Event Liability policy if you’re included in a lawsuit for a claim arising out of the organizer or vendor’s actions. Talk to your insurance agent, but you’ll probably want to be named as an Additional Insured on Event Liability policies to protect yourself from the event organizers or vendor’s actions and be entitled to defense. Common Additional Insureds are the owner, landlord, manager, or tenant of a venue.
How much does it cost for event insurance?
The total cost for Event Liability Insurance can start at $66 for a small wedding. The cost will go up from there depending on the type and size of the event. A trade show expecting 250 people will cost around $125. A 70’s music concert expecting 2500 people will cost around $400.
Does event insurance cover my vendors?
No. If the event organizer has Event Liability Insurance, the policy will not extend to covering the negligence of vendors, independent contractors, or any other business. It’s important that each vendor or business carries their own General Liability coverage for their own operation. For vendors, exhibitors, or service providers who don’t already have Business Operators Policy, Event Liability Insurance is a great option to provide them with short term coverage.
If you have any questions, please visit our website www.theeventhelper.com or give us a call at (855) 493-8368.