Insurances provide protection from financial loss. There are various kinds of insurance covering different situations, including special events. While most event planners don’t have this topic at the top of their priorities list, it is actually a useful tool in avoiding headaches from unforeseen developments in the events they organize.
Understanding Special Event Insurance
Special event insurance is typically used by companies to protect themselves from liability claims and lawsuits from events that they sponsor. However, individual event sponsors like in weddings and other personal affairs can also use it to cover costs of an unexpected cancellation of the event. It can also be used when the event sponsor is found responsible for damage to property or personal injuries incurred during the execution of the event.
Special Event Insurance Coverage
Event cancellation, as the term indicates, is when the sponsor suddenly backs out from an even he or she initiated. This type of circumstance can be covered by special event insurance by reimbursing deposits and other fees incurred during the planning of the event.
It may also serve as protection for event sponsors when vendors, like photographers and caterers, suddenly close their business or fail to deliver goods and services as promised. Special events insurance can also be used during instances like a wedding officiant breaking his leg or falling ill by covering expenses for rescheduling the event including rebooking of venue, catering, and other vendors.
Event liability covers situations that are considered hazardous to people or properties like equipment and the venue itself. This includes property damage or personal injury incurred during the event preparation and execution, such as damages to walls for when your hired band was performing as well as any incident caused by your guests like breaking glasses. People who were hurt during the event may also file for claims, which can be covered by a special events insurance.
Application
Not all special event insurances are the same, so be sure to read and understand the policy coverage thoroughly. There are some instances when this kind of insurance is not applicable, including:
- Use of pyrotechnics or fireworks
- Ski jumping and other aerial maneuvers
- Amusement park equipment
- Dangerous stunts like bungee jumping
- Use of trampolines
- Use of firearms
- Rodeos and other risky event features
The Importance of Special Event Insurance
Special event insurance may not be a priority for most event planners, but it remains as a useful tool to protect against occurrences that cannot be predicted. In fact, established companies don’t sponsor events without it.
To help you understand the importance of special events insurance further, we have compiled several reasons why you should get one:
- Added Protection Against Claims and Lawsuits
Most venues won’t let you use their facility without some sort of protection. In the absence of a general liability insurance, venue owners will require you to have some kind protection to prevent messy lawsuits and claim trials that may come about.
- Liquor Liability Insurance
Events like birthday and wedding parties are more likely to have alcohol available for guests, which, as most people know very well, can be a cause of mishaps in any kind of gathering. Event planners who plan to sell liquor during an event should be wise enough to include liquor liability insurance in their checklists for their own protection.
- Cancellation Insurance
As mentioned earlier, special event insurance policies may also cover cancellation of ordered goods and services. This particular policy isn’t covered by general liability insurance and is uniquely tailored for special events as it covers reimbursement for revenue losses and lost deposits for when you are forced to cancel or postpone your event.
