Hosting a special event comes with certain responsibilities. One of the most important tasks that may fall on your shoulders is the purchase of insurance for your special event. What is special event insurance? It essentially acts as a safeguard to protect your investments when operating an event that could potentially cause property damage or bodily injury. Without a special event insurance policy, you leave yourself open to a number of risks and liabilities.
What Does Special Event Insurance Cover?
Special event insurance, often referred to as one-day event insurance, is a type of insurance policy that can help cover your costs if you are found responsible for property damage or an injury during your event, or if you need to unexpectedly cancel the event. Most special event insurance policies cover only private events, while some also provide coverage for public gatherings. In addition, if an officiant or primary vendor fails to show up to the event, you may be able to recover some of your losses.
What Events Are Covered by Special Event Insurance?
Special event insurance covers all types of events and functions, such as weddings, birthday parties, anniversary parties, religious celebrations, baby showers, and quinceaneras. Other celebrations that may be covered include house warming parties, class reunions, retirement parties, sweet sixteen bashes, private achievement celebrations, and engagement parties.
Some public events, such as sporting events and dance recitals, may not be covered under this type of insurance. Certain business functions may or may not be eligible, such as private corporate parties or fundraisers. If you are unsure if your special event would be covered under a special event insurance policy, speak to an insurance broker.
What Risks Are Associated with Special Events?
Acquiring a special event insurance policy allows you to better manage the risks and liabilities associated with running a special event. No matter how well you plan for an event, there is always a chance that an accident could occur. A guest could slip and fall, leading to a broken leg. A featured performer could fail to show up. Inclement weather could prevent the event from happening. Theft and fraud are also common concerns.
While having the right type of insurance does not prevent these types of incidents from happening, it can prevent financial ruin caused by an unexpected accident or occurrence. Special event insurance can also offer event planners peace of mind.
What Policies Are Included in Special Event Insurance?
Special event insurance is typically made up of several important policies designed to offer broad coverage. General liability insurance is one of the most common policies found under special event insurance. Also referred to as commercial liability insurance, this type of policy protects against claims of property damage or bodily injury that could arise during the event. It may also cover third-party lawsuits that derive from anyone with the exception of the insured party’s own workers and employees that may work the special event.
Inland Marine Insurance
Inland marine insurance is another type of special event insurance that covers your property while it is in transit. For example, if you are transporting speakers, cameras, lighting, or other equipment, inland marine insurance would provide protection in the event that your items are lost, stolen, or broken. All types of equipment are covered, ranging from microphones and props to computers and other electronics. Your policy may also cover rented equipment.
Commercial Auto Insurance
In addition to inland marine insurance, your event should have commercial auto insurance in place. This type of policy covers hired, owned, or borrowed vehicles that may be used for your special event. With commercial auto insurance, you can maintain coverage in the event of a theft or damage to the vehicle, as well as property damage or bodily injury that occurs due to a vehicle-related accident.
Workers’ Compensation Insurance
Also make sure that you have workers’ compensation insurance in place for your special event. This program is mandated by the state and involves making payments which are required by law. While workers’ compensation benefits can range from state-to-state, most programs will cover the medical costs resulting from an illness or injury, as well as any replacement income and possibly compensation if an injury if found to be permanent.
Learn More About Special Event Insurance
Having special event insurance is a smart way to protect your interests when hosting a special event. You never know what could happen and it is better to be safe than sorry. In some instances, the venue in which you are holding the event may require that you have certain insurance policies before you can book a space. Special event insurance is one of the easiest ways to stay protected from the unknown. For more information about special event insurance or to learn how to acquire a policy, contact the entertainment insurance brokers at MFE Insurance.