As a special event organizer, you can be at risk of third-party liability claims. One way to protect yourself against risks, is to carry special event insurance.
What Is Special Event Insurance?
Besides injuries or property damage, cancelling an event such as a wedding can result in the loss of deposits and other costs incurred in planning. Special event insurance is a policy that provides financial protection in case you cancel or postpone a special event due to unavoidable circumstances.
What Does Special Event Insurance Cover?
Special event insurance typically provides two types of coverage as follows:
• Event liability coverage – Special event insurance covers third-party liability claims stemming from your event. For instance, if your catering team accidentally starts a fire, the special event policy can cover the damages caused. Take note that this policy can also cover bodily injuries on guests, although this depends on your arrangement with your insurer.
• Event cancellation coverage – This policy covers the losses resulting when you cancel your event or certain service providers cancel their services. For instance, if the master of ceremonies falls sick on your wedding day, you will have to incur more money to hire another one at the last minute. Since you probably won’t recover the deposit paid to the first service provider, the insurance policy will reimburse you for the loss.
Insurers usually limit special event insurance coverage to private events, including weddings, baby showers, religious celebrations, birthday parties, and anniversary parties. In other words, this policy will not pay for public events such as sporting events, exhibitions, and dance recitals. Additionally, certain corporate events such as fundraisers and private business parties may or may not be covered.
Before purchasing special event coverage, be sure to find out details such as:
• The existing coverage you have that may be helpful for your special event. For instance, if your car crashes on your wedding day, your auto insurance may provide coverage.
• Licensed insurance companies providing special event coverage.
• Whether your service providers have liability insurance or not.
• Policy inclusions and exclusions.