From marketing events to holiday parties, most businesses host events throughout the year. They can be a great way to connect with your staff and your community. A ton of planning goes into these events and you probably spend weeks on end making sure that every detail is perfect. You spend the entire day before setting up and getting everything ready and then comes the day of the event. What if something goes wrong? What if someone gets hurts and sues your business or external factors force you to cancel at the last minute. How can you protect your business from the unexpected when it comes to these events?
This is where special event insurance can help.
Special event insurance can provide liability coverage if a business organizes a party, fundraiser, or other events. It covers short term private and public events against bodily injury and damage claims for a specified time period.
This policy can provide coverage for many events such as sales and marketing events, holiday parties, networking events, employee retreats, dedication ceremonies, fundraisers, and more.
When does a small business need special event insurance?
If a business invites its employees to an event that differs from its day to day operations, it could benefit from special event insurance. Certain venues may even require it. This policy can help small businesses pay for unanticipated costs related to the event, such as an injury or venue cancellation fees.
How does special event insurance protect nonprofits?
Nonprofits depend on fundraisers such as walkathons, bake sales, dinners, and galas. However, these events can be a huge liability. A polar plunge participant could develop hypothermia and file a lawsuit, or a nonprofit might have to pay cancellation fees when bad weather forces a change of plans. Special event insurance protects your nonprofit by making sure you do not lose money after a mishap or canceled event.
How is the cost for special event insurance determined?
Special event insurance is a short term, a non-recurring policy that you pay for upfront. It can be very affordable for a small business. Several factors affect policy costs, including:
- Event risk
- Coverage limits
- Venue location and cost
- Number of people attending
- Whether alcohol is served
What if my business already has a general liability policy?
A general liability policy may include coverage already for the business’ special events or they may be able to add it to their existing general liability policy. Businesses should check with their insurance agent to clarify if they are already covered. If their general liability policy does not cover a particular “event” then they can purchase a separate special event policy.
It is important to ask if there will be alcohol served or provided at the event, if yes, they may want to purchase liquor liability insurance.