Spring is in the air and wedding season is upon us!
The warmer months see the return of weddings and other special events like family and school reunions, holiday celebrations and corporate events. When planning these events, especially those on a smaller scale, many people will question if they really need special event insurance.
However, it is important to consider what would happen if someone were injured while attending your event or if it were to be postponed due to circumstances outside of your control.
If these scenarios were to become reality, you risk being out a lot of money. Event insurance can help you recover costs and reduce the financial impact of something like a lawsuit.
Why should I have event insurance?
You have an idea in your mind about what your event day is going to look like, and it usually doesn’t involve the following scenarios:
- Someone falls on a slippery dance floor and breaks their ankle.
- Planned construction at your venue won’t be completed in time and leads to your event being postponed.
- Your photographer’s camera equipment, including all the photos they just took at your event, is stolen.
- A guest drinks too much alcohol and gets in a car accident on the way home.
It’s difficult to think about all the things that can potentially go wrong and cost you money, but these worst-case scenarios do happen – which is why it’s important to be prepared.
When evaluating whether you need event insurance consider this question: Would you be able to cover the legal costs if you are sued or if the event is cancelled and/or postponed?
If the answer is no, then you should build event insurance into your party planning budget.
What type of events require insurance?
Here are just a few events where insurance for special events is important:
- Wedding receptions
- Family or school reunions
- Luncheons and banquets
- Fundraisers or charity events
- Golf tournaments
- Concerts
- Parades
- Holiday parties
- Corporate events and large meetings
If you plan on serving alcohol, then event insurance is even more important. As the host, you could potentially be held responsible if people get hurt or the venue property is damaged.
What type of event coverages should I get?
There are specific types of event coverage that you can purchase when it comes to planning something like a wedding, baby shower or family reunion. They are:
- Event liability coverage protects you if you’re found liable for property damage or injuries that happen during your event and includes legal expenses if you’re sued. Some venues may require that you purchase this coverage as part of the rental agreement.
- Event cancellation coverage will reimburse you for non-refundable deposits and other fees if you must cancel or postpone your event for a reason beyond your control. Say your caterer suddenly goes out of business or your venue experiences a fire – this coverage can help cover some of the potential cancellation costs.
- Liquor liability provides coverage if there is a liquor-related incident and you are sued. Make sure that you have applied for a liquor license in advance of the event.
When planning your event, be sure to carefully review each of the vendor contracts before signing anything. If you’re unsure about whether something is covered under event insurance, talk to your broker.
When should I get event insurance?
The sooner the better. If COVID-19 has taught us anything, it’s that things can change quickly.
You should purchase event insurance before you make any deposits or purchases. Depending on the venue or vendor, you may have to provide proof of insurance by a date stipulated in the contract.
Make sure to talk to your venue about their specific requirements so that you understand what will and won’t be covered. Don’t forget to connect with your insurance broker, who can help you decide on a policy that fits your budget and ensure you’re covered if something goes wrong.