Is Special Events Insurance Necessary for Home-Based Events?

Is Special Events Insurance Necessary for Home-Based Events?Special events insurance is a type of liability coverage that can apply to claims by third-parties for bodily injury or property damage sustained during an event held by the policyholder. Accidents can occur at any type of event regardless of how many safety measures are put in place beforehand in order to keep guests and property safe. When something does go wrong at an event, it is typically the host who is – at the very least – partially liable for any injuries sustained by guests and/or damage to others’ property. If it can be proven that the host was negligent in any way, they can be held fully liable for injuries and damages.

Most often, special events insurance is used by businesses or non-profit organizations to provide liability coverage for things like employee appreciation banquets, networking luncheons, charity fundraisers and local community events. Many times these events are not even benefitting the host financially, which makes it especially devastating when an unexpected financial loss occurs. Special events insurance is also regularly used for more more personal events such as birthday parties, weddings, family reunions or other celebrations where a large venue is needed. Some venues even require event hosts to provide proof of special events insurance before they will allow the event to be held there.

When planning a home-based event, hosts tend to overlook special events insurance, as it’s not typically associated with personal lines insurance. The general attitude towards liability at home is that the homeowners or renters insurance policy will take care of any injuries to guests or damages to others’ property. While this is very true, the policy limits of a home or renters insurance policy may not be high enough to cover the full judgement against the host. For example, if the host’s homeowners policy has a maximum liability limit of $250,000 but an injured guest wins a judgment of $500,000, the host would be responsible for coming up with the difference.

Special events insurance can be used in place of homeowners insurance for injuries or damages sustained during a covered event at the home. It can be written with higher policy limits, and if an claim were to be made against the host, it wouldn’t have to affect their homeowners policy. When having an event at home, the last thing thing any host wants to deal with is an insurance claim. Luckily, special events insurance offers hosts a “safety net” so that their party doesn’t turn into a liability disaster and they can party with a little peace of mind.

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