What is Special Event Insurance?
Special event insurance is short-term general liability insurance that protects an event holder, such as a vendor or concessionaire, against lawsuits arising by third-parties for bodily injury or property damage. Additional coverages such as liquor liability, medical costs and even rain-date coverage are available. There are often some eligibility standards for the size, length and location of the event.
A business owner of an art gallery decides to rent to a non-profit who will host their annual benefit both in the gallery and on the patio. There will be a caterer with liquor and hor d’oeuvres, a silent auction and some merchandise sales, as well as some volunteers who will be working the benefit. Attendance is expected to be about 500 people.
The business owner likely has general liability insurance for his art gallery, however, when renting out his space for an event he will need extra coverage and will require the non-profit to provide special event insurance as well. Some business owners even require you to add their name to additional insureds on the special event policy. Unfortunately, you have to do whatever your event venue management wishes. Fortunately, special event coverage is not very expensive and adding insureds or extra coverages doesn’t usually break the bank. Most basic special event policies cover liabilities first, such as third-party bodily injury or property damage and liquor liability. Even if the non-profit checked their caterer’s certificate of insurance, it is still a good idea to have liquor liability coverage in their policy as well. It doesn’t cost much to add and will likely provide more coverage to them than a subcontractor’s policy (the caterer). There are other coverages this non-profit may need for their event. For example, they plan on spending part of their benefit outdoors. If weather keeps guests from attending the fundraiser that day, the benefit will not serve its purpose to raise funds. A rain-date endorsement will cover your losses for having to change the date of your event due to weather. Or an event cancellation endorsement, in the circumstance they wish to cancel the event and recoup their expenses. Also, with very expensive items in their silent auction, the non-profit may consider increasing their limits with an umbrella or excess liability endorsement.
As demonstrated, even a one time, one night only, event can need a significant amount of coverage. Imagine a multi-day event? Or an event that involves children? Maybe you are parking cars at your event, but not with a valet service? What if you are bringing tools and equipment from your home or business, that don’t normally leave the premises, to the venue? Well, The Insurance Shop has thought of all these questions and more. Our special event specialists work with customers to define their risks and find their coverages fast and for the right price. We’ve got lots of reasons for you to call, but here are just a few extra
- Large excess limits available.
- Abuse and molestation coverage available.
- Commercial property, inland marine and hired and non-owned auto coverages available.
- Available nationwide.
- Available for short-term or annual events.
- Separate tenant user liability policy for exhibitors or vendors available.