Special event insurance protects businesses and individuals when they host activities that fall outside of the scope of the general liability insurance coverage. It is a specialty insurance policy designed to indemnify the policyholder and/or host from certain claims associated with accidents or other issues that might occur during an event. Policies vary based on specific needs, but generally, special event insurance offers protection for the host against damage to the facility, bodily injury, alcohol-related incidents, and issues caused by weather.
A range of events may be covered under a special event insurance policy. Generally, special events are defined as short-term activities hosted by business owners outside of normal operations or by individuals. Both public and private events may be covered. Examples of special events include:
• Conferences
• Dinners and parties
• Concerts
• Auctions
• Festivals
• Weddings
• Marathons/5ks
• Sporting events
• Trade shows
Special event insurance can be purchased by anyone who is hosting or participating in an event. This includes:
• Business owners
• Event hosts
• Exhibitors
• Concessionaires
• Vendors
Anyone who is vulnerable to lawsuits or responsibility for costs associated with bodily injury or property damage should protect themselves with comprehensive event insurance.
If you are serving, selling, manufacturing, or distributing liquor, beer, or wine at your events, you need liquor liability insurance. Liquor liability insurance covers legal fees, medical costs, settlements, and property damage caused by an intoxicated person who was sold or served alcohol by the policyholder. It is very important for anyone holding an event at which alcohol will be served to protect themselves with insurance coverage.
Standard general liability policies often exclude liquor-related claims. However, some will include host liquor liability. Host liquor applies when the host of an event serves alcohol without charge. It provides coverage for event holders should an alcohol-related incident occur. Host liquor coverage is excluded if the policyholder is selling or distributing alcohol, in which case additional liquor liability insurance coverage is necessary.
The per occurrence limit is the maximum amount the insurance company will pay per incident, regardless of the number of claimants. The policy will not pay for damages exceeding this limit for one specific claim. A standard general liability policy may have a $1,000,000 per occurrence coverage limit.
The aggregate is the total amount, regardless of the number of incidents, that the insurance company will pay out for all claims during the full term of your policy. The aggregate limit is usually double the per occurrence limit, but each policy is different. An underwriter can help tailor an event insurance policy to your specific needs that will safeguard you from the claims for which you are most at risk.
Unfortunately, it is difficult to predict with complete certainty whether it is going to rain or not. Events that take place outside should be protected by rain insurance within their policy. A subset of event cancellation insurance, rain insurance covers events in case of rain. The event does not need to be canceled in order for the policy to be paid out; it simply has to rain the amount you are insured against. Therefore, rain insurance is a great way to protect against losses associated with walk-up revenue, which may affect vendors like food trucks, for example.
Accident waivers help to reduce or eliminate potential liability for the policyholder in case of injuries associated with an accident. It is important to have event participants sign a waiver to protect yourself from fees and/or damages caused by a claim that may exceed your policy limit.
It is a good idea to purchase a special event insurance policy as soon as you begin to put down deposits. Insurance must be purchased at least 24 hours prior to the event. Vendors, such as caterers and photographers, often require a significant non-refundable deposit up-front. It is important to start protecting your investments as soon as you have paid them. Some event insurance products, such as cancellation insurance, must be purchased at least 15 days prior to the anticipated event.
Event vendors are people or companies that sell, demonstrate, or display products or provide services within an overarching event. Usually, vendors are not included under event liability policies. Depending on your insurance provider, however, you may be able to add them as additional insureds.
If you are interested in special event insurance, contact Osprey today. Our underwriters can provide you with the insurance coverage you need to protect your investments and ensure your events run as smoothly as possible. Give us a call at 888-9OSPREY (888-967-7739) or visit our Insurance Shop to get started.