Any thriving business knows the perks of leveraging events to promote its services and products. In this digital age, special events like conferences, seminars, and fairs offer businesses the opportunity to connect with their customers and prospects in a more engaged and personalized way. However, by hosting such an event, a business opens itself up to several risks and variables outside of its control, the kind that may come back to the company in the form of a lawsuit.

If your company hosts special events or your business wants to hold an event to promote your products and services, you may want to consider getting special event insurance. When you host a special event, you can face liability risks, as accidents at the event can lead to property damages, bodily injury, and more. Fortunately, special event insurance can protect individuals and businesses from liability.

What Is Special Event Insurance?

Special event insurance is a form of liability coverage that can protect a company when third-parties get injured in case of bodily injury or property damage during a special event hosted by the business. Based on your policy, in addition to property damage and bodily injury, special event insurance may also protect your investment in producing the event, should an extraordinary situation arise. Examples of situations that special event insurance may provide coverage for include:

  • A guest slips and breaks their arm at your conference
  • An employee damages the venue at which you are hosting your event
  • An attendee consumes too much alcohol at your event and injures people on their drive home
  • A guest accidentally sets fire to a portion of the property
  • You need to cancel the event due to an unforeseen circumstance out of your control

Should You Buy Special Event Insurance?

Any astute business owner should consider purchasing special event insurance. A few dollars now could mean the difference between potential thousands, if not millions, in losses. It is always best to protect yourself in the event of an unexpected accident. As a business owner, you’re already familiar with the number of risks that constantly exist outside your control.

This risk can increase exponentially during special events, especially depending on the event’s size, scope, and nature. Special event insurance may come at a cost, but it is often a small price to pay to protect your business. When planning a special event, consider all the variables that are outside your control. These may include:

  • Last-minute vendor or venue cancellation
  • Bodily harm to your guests at the event
  • Bodily harm caused by your guests at the event
  • Property damage to the venue caused by your guests
  • Property damage to the venue caused by your employees

In many cases, the choice to purchase special event insurance may not be up to you. Depending on the size of your event, many venues will require you to purchase special event insurance.

When Should I Purchase Special Event Insurance?

You must purchase special event insurance before the event. In many cases, it is best to purchase coverage as soon as you can. Depending on your event’s nature, investing in the right type of special event insurance is critical in protecting your business from financial risk.

What Is Covered by Special Event Insurance?

The amount of coverage offered will differ based on your policy. However, there are several facets of special event insurance that you’ll want to consider in light of your event to determine the key components your special event insurance policy needs to adequately protect your business and your investment.

1.      Rental Coverage

This portion of the policy protects against any damage to items or equipment rented for your event. Suppose your business is hosting an event and get a few high-quality speakers on rent. At the event, one of your attendees damages your rental speakers. Your rental coverage would protect your investment and cover the cost of any damage to rental properties, including your speakers.

2.      Third-Party Property Coverage

This type of coverage covers the physical location where the special event takes place. Typically, you can only use third-party property coverage on properties that are not owned by you or your business. For example, you’re hosting a VIP dinner for your top clients and rented a nice restaurant. However, at the event, one of your attendees causes damage to the property by breaking a very delicate mirror. The repair costs to replace this mirror will be covered by third-party property coverage.

3.      Liquor Liability Coverage

One situation in which you should definitely purchase special event insurance is if you decide to serve and sell alcohol at your business event. For example, your company hosts an annual dinner for your valued customers. As a part of the evening’s itinerary, you included a happy hour cash bar where your guests can purchase alcoholic drinks.

One of the guests has one too many drinks, becomes severely inebriated, and starts a fight with one of your employees, resulting in bodily harm to both your guest and employee. You could be held liable for the outcome of this situation solely because it occurred during the event your business hosted.

4.      Cancellation Coverage

This type of coverage protects your investment in a special event in the case of any unexpected cancellations. This can include natural disasters, rain, sickness, or anything else that may force you to cancel your event.

5.      Umbrella Liability

Some venues may require a higher amount of coverage than the limits traditionally offered. You can opt-in to purchase umbrella liability to increase the coverage of your special event insurance.

6.      Vendors Coverage

This type of coverage covers any damage to the property at the venue by any contracted vendors. For example, you hired a lighting specialist to illuminate the conference room of your event. During the event, one of the lights topples over and makes a hole in the hotel’s wall where you are hosting the event. Vendors coverage would cover the cost of repairing the hole in the wall caused by one of your contracted vendors.

Conclusion

Special event insurance can protect you and your business if someone is injured or property is damaged during your event. Accidents at events can happen easily, no matter how many precautions you take. Coverage from special event insurance can provide you with the protection and true peace of mind you need.

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