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It is undeniable that summer is, for many, the ideal time for a special event. From getting married on the beach with the ocean in the background to hosting an outdoor party in the warm July air, there’s no questioning the appeal of this time of year. In addition, event planning businesses also see a rise in inbound business towards the end of the summer as many businesses and individuals start planning events for the winter holiday season.
A Special Event’s Requirements
When planning an event away from your home or business, the venue may require the person or entity hosting the event to have a Special Events insurance policy as outlined in the rental contract. The contract will indicate the limits of liability that must be carried for General Liability as well as if Liquor Liability is needed. They will usually asked to be named as an Additional Insured as well.
There are some event policies where you can purchase additional coverage for event cancellation which enables you to recover some of the lost expense if the event needs to be cancelled for a variety reasons. This is not true of all Special Events policies but is traditionally found in policies for events such as weddings.
What Makes a Special Events Policy
A Special Events insurance policy has several key exposures that it covers. These are:
- General Liability – If someone is injured or becomes ill at the event and requires medical treatment, the cost would likely come down to the event host. Whether someone falls and is injured or the event-provided food causes food poisoning, the event planners are likely to be held liable.
- Liquor Liability – If the event serves alcohol, this coverage is absolutely necessary. In addition to covering accidents occurring at the event itself, if a patron of the event were to later cause an accident due to their intoxication, the event who served them would be liable for medical bills.
- Property Damage – If the event causes any damage to the venue’s property, the event’s hosts would be held liable for repair or replacement costs.
Special Events Coverage for Weddings
As mentioned above, weddings often have another form of coverage included in their Special Events insurance program: event cancellation coverage. If the event needs to be postponed due to inclement weather, a vendor cancels after having already been paid a deposit, or one of the necessary parties (such as the bride, groom, or minister) is unable to attend, a wedding insurance policy can cover the cost of cancellation or postponement.
Special Events coverage is important because other insurance policies do not always cover the risks that come with a special event. In addition to venues often requiring general and liquor liability policies, personal umbrella insurance often excludes liquor liability coverage, homeowners insurance policies might not have high enough limits for the potential damage costs. As event holders may be held liable for claims of property damage, bodily injury, and medical payments, it’s important for event hosts to have insurance that will cover all potential claims.
About Mavon Insurance
At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (877) 426-2866.