Most people are familiar with auto and homeowner’s insurance policies, but many are people are surprised to learn about the wide range of insurance policies that cover a variety scenarios and situations. For example, many couples planning a wedding are taken aback when they’re told that they need to furnish proof of event insurance.
Event insurance is a rare type of coverage that you may never have to purchase, but it’s important to know that it’s available. Even if wedding bells are ringing in the very far off distance, knowing what event insurance is, why it’s required, and what it will cover can prepare you for any event, any time of the year.
There are basically two kinds of event insurance, and your needs will depend upon your role in the event. The first, and possibly most important kind of insurance, is for event organizers who take on the greatest responsibility and risk for hosting an event. The organizer is also taking on a financial liability should anything happen. Although many people don’t plan or even consider the financial risks of an event, risk is a fundamental aspect of organizing any large event conferences, shows, and exhibitions. Unfortunately, things do wrong and the unexpected can happen, often without any fault of the organizers or other participants. However, there’s always someone who bears the weight of any unfortunate accident or situation.
Insurance for event organizers will cover almost any conceivable situation. Liability for the public or attendees is probably the first concern, and in many situations, the need for event insurance is not optional; it’s required. Many employer purchased liability insurance will cover any staff involved in the implementation of the event, and you should always make sure your liability insurance does have provisions for this coverage. Organizers should also be concerned about legal protection, especially if the event is open to the public and poses any kind of safety concerns. Consider this scenario: your company is going to host a large carnival and have different games, small rides, a fireworks display, or events with livestock and pets. These situations have obvious risks and special care should be taken.
Insurance for event organizers should include more than just public liability coverage. It can also cover any difficult scenarios that could happen on the day of the event or on days leading up to the event. Some policies will cover factors that would negatively impact attendance, helping the investors and event planners to recoup a portion of the event investment. Eventualities may also be included to include transport strikes and disruptions, including worst-case scenarios like terrorists threats that cause transportation routes closures and evacuations, or severe weather cancellation. Some policies will also cover things if your keynote speaker can’t attend suddenly and you have to hire a new speaker at the last minute.
Another kind of event insurance is for exhibitors or participant insurance, which is for those who are renting or hiring a space and bringing their own equipment or exhibitions to the event. Similar to organizer event insurance, this insurance will generally provide for public liability coverage. Sometimes this is absolutely needed, so it’s worth checking with organizers about what their insurance will cover (such as asking your wedding event planner what kind of coverage they have). This will often cover damages to exhibitions and to display or demonstration goods, both owned and rented or hired for the event’s duration. Weddings typically fall under this kind of event insurance. Because couples frequently rent a location for a wedding, this policy can be a one-time purchase, nothing you’d need to coverage for extended period of time.
It’s also important to remember that sometimes, if you own a company that will regularly be holding and sponsoring events (such as a talent management company that holds open casting calls that are open to the public), that you may not need to have event insurance for each separate event as it may be included in your business’ general liability insurance coverage.
Contractors that provide goods or services for an event may also find it beneficial to have their own kind of insurance, with some different provisions. This kind of insurance can cover event disruption for many reasons, and also for a public and employer liability coverage.
Just as with anything else in life, you always want to make sure that anything you’re involved in protects you from having to bear the entire burden of any financial liabilities that could potentially fall upon you, so if you’re going to be holding an event, sponsoring it, or have a company that will regularly be hosting events, examine every aspect of your event and that will help you determine what kind of event insurance you need. Just remember though, if it rains on your wedding day, superstition says it’s good luck until it causes the band’s electrical equipment to short out and electrocutes someone.
– Desiree Baughman, InsuranceQuotes.org
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