Event Insurance

Hosting events such as festivals, conferences, and celebrations open a business up to a lot of liabilities and risks. Coverages for events include property insurance, general liability insurance, employer's liability insurance, and cancellation insurance. Policies cost less if they are purchased far in advance, and premiums depend on the time of year, the type of event, and the level of environmental risk in the area.

Property Insurance

A property insurance policy protects equipment at events whether it is owned, borrowed, or hired for the event. The policy generally covers property while in transit to and from the event as well as during the event. Damaged, destroyed or lost property is replaced on a "new-for-old" basis. 

Special Event General Liability Insurance

A general liability insurance policy provides broad protection when an event holder or concessionaire must defend against lawsuits or pay damages for bodily injury or property damage. The policy can also include host liquor liability. Costs vary depending on the event and location. 

• An additional insured endorsement to the policy protects the venue and sponsors. Venues usually require that all parties using the site name them as an additional insured on a general liability policy.
• A third-party property damage liability policy pays for damage, destruction, or loss of property belonging to others while it is in the care of the policyholder.
• Automobile liability pays for damages resulting from the ownership, maintenance, or use of any auto covered by the policy. This is used whenever the event owner or employee uses a vehicle for business reasons. If cars aren't generally used for the business but will be for an event, consider this type of coverage.
• Liquor liability is necessary if alcoholic beverages are being sold at an event or if a liquor license is required to distribute them. This coverage is used in the case of:
  • Causing or contributing to the intoxication of a person
  • Furnishing alcoholic beverages to a person under legal drinking age or under the influence of alcohol
  • Violating any statute, ordinance, or regulation relating to the sale, gift distribution or use of alcoholic beverages. 
• Most state laws require Workers' compensation coverage. It pays for medical, disability, or death benefits for an employee who becomes ill or injured in the workplace. Many times, independent contractors are considered employees under workers' compensation law, and so this coverage applies to hired help as well. 
• Employer's liability insurance, which is generally included in workers' compensation policies, protects a business against lawsuits concerning injuries or illnesses attributed to employer negligence.

Cancellation Insurance

Cancellation policies prevent financial consequences in case of an event's cancellation. This also applies when the event is not entirely canceled due to unforeseen circumstances like bad weather. Perils that are beyond the control of the event's host, such as a speaker dropping out, strikes or disease outbreak, are covered here.