When you’re planning an event or you intend to host your friends to a housewarming, ending up in a courtroom because of your event or housewarming is probably never on your mind.
But considering how the entire world has turned, the probability of getting sued should be on your mind whenever you’re throwing a party or hosting any event.
Regardless of the type of party you’re throwing, either a wedding, housewarming, birthday, or even a tradeshow, odds are you may need special event insurance to protect you against liabilities.
So what exactly is a special event insurance and what does it entails?
A special event insurance is a short-term policy that protects your business against an events that it arranges.
It doesn’t matter if you’re an event planner, an individual, a marketing outfit or even a family that is celebrating an extravagant wedding, a special event policy can protect you when you’re sued as a result of the damages caused by the party, or as a result of the accidents or injuries that occurred at the event.
Understanding How Special Event Insurance Works
To have a crystal clear picture of how special event insurance works, consider this scenario.
For instance, a pet support company holds a big fund-raising event. So they hire a caterer and rents out a ballroom, carry out an auction and even organizes a special dinner part for some of their most respected possible donors.
So who will be responsible if one of our guests who is a smoker starts a fire by mistake? Or the caterer you hire started a fire suddenly?
Worst still one of your guests could be involved in a car accident and if someone damages an item or even a structure in the ballroom, who will be responsible for the cost?
If your company or you as an individual has ever organized a major event, you can easily tell that a lot of things can go the wrong way. And when things happen like that, the host of the event is usually held responsible.
However, when you have a special event insurance, you wouldn’t have to bother about what can go wrong. Rather, you’ll focus your attention on ensuring that your event is successful. Your policy will protect you against liabilities so you wouldn’t have to bother about the cost.
As it is today, a lot of event venues requests that hosts have a special event insurance to protect them against possible liabilities.
Can a special event insurance protect you against all forms of liabilities or are some exempted? Let’s see what a special event insurance actually cover.
What Can A Special Event Insurance Protect You Against?
- Based on the type of event you organized, you can get protection against the following:
- Liquor liability
- Cancelation insurance, protects you against fees and other charges you’re required to pay because the event can no longer hold as a result of an accident or weather
- Lawsuit protection for accidents related to slip and fall which is a result of employees or attendees actions
- General liabilities
However, many special event insurance only protect against the precise loss occurrences or risks that are stated in the policy. So make sure you find out what is covered and what is not before you make up your mind to buy a policy.
What About Liquor Liability Insurance?
If you intend to serve or sell alcohol, odds are you’ll need a liquor liability insurance policy. This policy covers you from lawsuits when some or even one of your guests or employees drinks excessively and was involved in any of the following:
- Caused an injury to someone
- Is caught up in an accident
- Damages property
Are you aware that you might be held responsible if one or more of your guests drinks excessively and was involved in a car accident after leaving your event? Well now you do!
Social host laws exists in some states. This law held an event hosts, the servers as well as the event planners liable for the actions of their guests even after the end of the event and they have left.
Likewise in some states where it is not clearly defined in their laws, an injured individual or group has the right to sue you or your business due to the outcome of our event or the actions of your guests.
For instance,, you may be a wedding planner. The caterers you hired performed their duties as expected and served champagne and other drinks as you want all evening. Unfortunately, one of the bride’s uncle had more than enough drinks and damaged some structure of the reception hall with his car.
In this scenario, the wedding planning business could be held responsible for whatever damages is done. But the good news is if you have a liquor liability insurance it can protect you against the liabilities caused by drunk guests.
So if you’re interested in a special event insurance, how much are you expected to pay for it?
How Much Does Special Event Insurance Cost?
The amount of money you’re expected to pay for a special event coverage is based on the type of event you’re planning to hold and if you intend to serve alcohol or not. Nonetheless, the following are the least special event costs:
- Event insurance that includes Liquor Liability = $750
- Event insurance without a Liquor Liability = $350
However, you may be required to pay more as a result of the following risk factors:
- The kind of event
- The number of guests you have invited or the number of guests you’re expecting
- The location of the event or where it will take place