A Complete Guide To The Best Special Event Insurance

TLTR: This article discusses special event insurance and all the risks you need to cover when hosting an event. It also addresses frequently asked questions, serving as your go-to event insurance guide.  

There are many different types of events—everything from weddings to parties to conventions and corporate meetings. They generally can take months of planning and cost a lot of money. While everyone hopes their event is flawless, event planning is complicated and there are many things that can go wrong. Having comprehensive special event insurance can help protect you financially in situations where things go south.  

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What is Special Event Insurance?

Special event insurance or event insurance is a short-term insurance policy for public or private events. The policy covers the insured for various things, such as bodily injury and property damage. The main feature of the policy is to protect your investments in a specific event. 

What Does Special Event Insurance Cover?

Special event insurance coverages include:

Event Cancellation Coverage

This will help get you reimbursed if your event is cancelled or postponed due to an unforeseen situation. The policy usually covers all non-refundable expenses.  

For example, the hall where you were planning to organize a book launch catches fire due to an electrical issue. As a result, you have to postpone the event by a week. With event cancellation coverage, you can get reimbursed for things such as decorations and catering.

Event Liability Coverage

Special event liability coverage provides protection against all kinds of mishaps that may occur during an event. So, any liability (which is specified in the policy) involving accidental property damage or bodily injury will be covered. It’s also important to note that many venues require you to have coverage for even just hosting the event.  

If you have kids invited to a wedding and they accidentally knock over a huge stack of crockery, it could lead to substantial financial loss as well as physical injuries to anyone who may have been standing too close. Event liability coverage will take care of the property damage as well the medical bills up to a specified amount.

Liquor Liability Coverage

It’s important to have liquor liability insurance if your event serves or sells alcohol. In fact, some venues require you to have liquor liability insurance if you’re hosting a wedding.  

The amount of liquor liability coverage you get depends on which state you’re in. Every state has a different Dram Shop Law requirement. 

Dram Shop Law allows businesses to be accountable for serving alcohol to people (especially minors and intoxicated adults) who may cause physical injury to themselves or others. It also allows establishments as well as private hosts to be held accountable if a particular incident leads to death or property damage. 

It’s possible, maybe even likely, that someone could get drunk at an event you hosted. If the person then ends up hurting someone else, perhaps by driving while still intoxicated, then you could be liable. In this situation, liquor liability coverage will help protect you.

Food Liability Coverage

Generally, food insurance is purchased by commercial food businesses. But if you have an event in which you sell or serve food to your guests, you could also benefit from this policy. You’ll want to have all the bases covered if your guests’ health is compromised due to the food you are serving. 

Suppose someone at your event gets food poisoning. They could decide to hold you responsible. Having food liability coverage in your special event insurance can help you deal with a situation like this.  

How Much Does Special Event
Insurance Cost?

According to Insureon, the average private event insurance cost based on the number of days is:   

  • One day private event: The average private event insurance cost is $182.   
  • A commercial event lasting two to 10 days: The average premium cost is about $250.  
  • A commercial event lasting more than 10 days: The average coverage charge may exceed $257.  

Various factors contribute to the cost of an event insurance policy. They include  

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Location 

Where you organize the event makes a huge difference in the price of special event insurance. For example, an outdoor wedding costs more to insure than an indoor wedding. And a wedding held, for instance, in New York will be expensive to insure when compared to a wedding held in Utah.

Number of Guests 

The more guests you have, the more expensive your insurance will be. More people mean a greater chance of accidents. Insurance rates may also differ based on how many children you have in attendance.

Type of Event 

Commercial events are more expensive to insure because there is usually a large gathering and many things going on within the event. For example, a business fair will have dozens of vendors. Despite most of the individuals being covered with a business owners policy, the cost to insure the whole event will be higher.

Special Event Insurance & Liquor Liability

Many events, especially private events, are likely to have liquor. Whether it’s your standard champagne for everyone or an open bar, liquor and private events often go hand in hand.  

According to MyWalletJoy, about 92% of all weddings serve alcohol and the average cost of serving alcohol at a wedding is north of $2,500.  

Adding a liquor liability insurance policy to your wedding insurance is a smart decision. The policy often provides coverage for:  

  • Claims on alcohol-related incidents when guests may be inebriated 
  • The possibility of a guest suffering from alcohol poisoning 

The annual average cost for liquor liability insurance is between $900 and $1,200. However, it’s possible to buy liquor liability insurance for a wedding in the range of $60 to $120. 

Events Covered by Special Event Insurance

Here’s a list of eligible private events which can be covered by special event insurance:  

  • Weddings 
  • Religious celebrations 
  • Birthday parties 
  • Baby showers 
  • Gender reveal parties 
  • Anniversary parties 
  • Christmas parties 
  • Thanksgiving festivities 
  • Halloween parties 
  • Graduation parties 

Here’s a list of public events which can be covered by special event insurance:  

  • After game parties 
  • Movie screenings 
  • Book launches 
  • Graduation ceremonies 
  • Education fairs
  • Business conferences
  • Award ceremonies 
  • Galas  
  • Charity events 

    Note: If the event you’re planning isn’t present in the list above, call your insurance company to get customized coverage. 

    Getting Married?
    Consider These Insurance Policies

    The Wedding Report says that in 2020, there were a total of 1,267,877 weddings in the U.S. The average wedding cost in 2020 is estimated at $20,286. Weddings tend to be lavish if common events. 

    Weddings are one of the most special occasions, and on such important days you deserve financial security. Special event insurance or wedding insurance is just the thing you need to add as a safety net.  

    An article in Forbes states that there are also various other policies that you should consider buying if you’re planning to get married. These include: 

    Travellers Insurance

    Almost every couple travels for their honeymoon. Having good travel insurance or flight insurance policy makes sense. 

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    Homeowners Insurance 

    You’re likely to buy a home once you’ve decided to start a family. With a good homeowners insurance policy, you can cover your home as well as your family from potentially costly perils.   

    Car Insurance 

    There’s a good chance you may want to have children before long. A growing family may require you to have one or two cars. Having a comprehensive car insurance plan from the very beginning can be economical in the long run.  

    Personal Articles Floaters Insurance 

    One of the best parts about having a wedding is all the gifts you receive. Protect these precious items with a personal articles floater insurance policy.   

    Pet Insurance 

    Pets are an integral part of most families, and if something were to happen to them this policy will have you covered. Whether it’s a dog, cat, monkey or an iguana, it’s always worth keeping unexpected vet bills affordable with pet insurance 

    Wrapping It Up…

    Special event insurance is a good investment for events that you’ve been planning tirelessly for. The policy not only covers you from possible financial crises but also helps give you peace of mind.  

    Contact a local insurance agent near you to get a full quote on special event insurance today.  

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    FAQs

    How Much Does Wedding Insurance Cost?

    A general wedding insurance policy can cost between $150 and $500. It depends largely on the amount of coverage you want.  

    What Does Wedding Insurance Cover?

    Wedding insurance policy covers loss of:

    • Photos
    • Videos
    • Clothing
    • Jewlery
    • Deposits

    Do You Really Need Special Event Insurance?

    The short answer is yes. Special event insurance is necessary for an event you have invested a significant amount of time, resources and energy preparing for. But if you really don’t want to spend the extra bucks on the event, you can go about checking the policies your vendors have.  

    Many vendors have third-party liability coverage included in their policies. If you find that the major areas are covered then you can consider skipping the insurance.  

    Does Special Event Insurance Cover Event Helpers?

    Yes, your special event insurance policy will cover all the people who are working for you as event helpers. However, the coverage will have a limit. You should check with your agent for details 

    Do I Need Special Event Insurance for an Online Event?

    Yes, but only partly.  

    Since the Covid-19 crisis, many events have been conducted online. While a full special event insurance may not be required for your digital event, getting a part of the policy will help. Mostly because cyberattacks during digital gatherings aren’t unheard of and having the policy may save you from third-party liabilities.  

    Will Special Event Insurance Cover All Aspects of My Event?

    It may not. If your event has high risk activities such as horse riding or a trampoline then the policy may not cover it. But the option to add such clauses or additional policies is available. You should discuss it with your agent 

    Where Should I Get Special Event Insurance from?

    You can get the policy from your current insurance provider. However, if you want to look into other companies that specialize in event insurance, here are some options: 

    • RVNA 
    • Eventsured 
    • Philadelphia Insurance Companies 
    • Markel 
    • Travelers 
    • WedSafe 
    • USLI 
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