Liability insurance may be required to mitigate your financial risk and protect yourself from high out-of-pocket costs related to medical payments and legal fees if one or more of the guests at your special event were to claim you were liable for personal injury or property damage. Learn more below about whether or not you should purchase a liability insurance policy specifically for your special event.
What Is Liability Insurance For A Special Event?
Liability insurance protects you from lawsuits and other claims that you were liable for damages. Many insurance providers offer a type of liability insurance that is known as special event insurance. This coverage protects you or your business from claims by third parties in regard to personal injury or the damage of property. The most common types of special events that may require liability insurance include:
- Corporate events
Since special event insurance only covers the event, it is very affordable to obtain. It is often necessary to purchase before an event takes place, especially when renting a venue for the special event. Without liability insurance, there are many accidents that can take place for which you may become obligated to cover the costs if someone were to claim you were liable. This includes:
- Slips and falls
- Physical altercations
- A stage collapse
- Auto accidents
- Property damage
Any such claims could lead to expensive costs. Special event insurance covers much of the costs associated with these sorts of claims.
When Is Liability Insurance Required For A Special Event?
Liability insurance can protect both you and the venue site. Subsequently, many venues require you to obtain a policy before booking your special event. Without a liability insurance policy, you may not be able to book the venue of your choice for your special event.
Liability insurance is a good idea particularly if you do not already have a general liability insurance policy that covers your special event. You may still need to purchase special event insurance if you already have a general liability policy, depending on the extent of the coverage.
One of the most common reasons liability insurance is necessary is because the host intends to serve alcohol at the special event. In this case, a policy known as “liquor liability insurance” may be available that specifically protects you from claims made related to the sale or consumption of alcohol at your event.
Are There Any Exclusions WIth Liability Insurance For A Special Event?
Special event insurance is often limited to the event and the specific date on which the event takes place. This reduces the length of coverage for the policyholders but also drives the price down substantially and makes the coverage highly affordable. Certain exclusions may apply based on the type of event. For example, a fourth of July party may exclude accidents related to pyrotechnics (fireworks). Other exclusions may include bungee jumping, firearms, aerial maneuvers and amusement devices. Sporting events may have additional exclusions as well.
In many cases, the venue host may ask that you provide them with a certificate of liability insurance. You may also need to include the venue host as an additional insured as well. Be sure to discuss your insurance needs with the venue host before obtaining a policy.
How Can I Obtain A Liability Insurance Policy For A Special Event?
The first step to obtaining a liability insurance policy for your special event is to contact an insurance provider that offers special event insurance. You may be asked to fill out an application for the insurance policy.
This includes a series of questions related to your business, the event you plan to host, the location of the event and owner of the venue, the number of expected attendees, whether or not you intend to serve alcohol, types of entertainment, additional insureds and more.
These questions allow the insurance provider to personalize your policy according to your specific special event insurance needs. After filling out the application, the insurance provider can provide you with a quote according to the extent of coverage you need to protect you and additional insureds properly.
Consult With MFE Insurance To Obtain A Liability Insurance Policy
MFE Insurance offers special event coverage to ensure you are protected from claims of liability at your special event. If you would like to learn more about liability insurance for a special event or are in need of a policy, contact the team at MFE Insurance to start the process today. Our specialists are happy to answer any questions or address any concerns you have related to liability insurance for a special event, ensuring you get the coverage you need to adequately protect yourself and your business.