A Complete Guide To The Best Special Event Insurance

TLTR: This article talks extensively about special event insurance and all the risks you need to cover when hosting an event. Furthermore, this article answers all your frequently asked questions, serving as your go-to event insurance guide.  Events generally take months of planning and cost a lot of money. While everyone hopes their event is flawless, there are so many things that can go wrong. Having a comprehensive special event insurance can help you stay afloat in situations when 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 from 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 coverage will help you get reimbursed in a situation where your event may be cancelled or postponed due to an unforeseeable situation. The policy usually covers all the non-refundable expenses.

For example, the hall where you were planning to organize a book launch event catches fire due to an electrical issue. This results in you having to postpone the event by a week. With event cancellation coverage, you can get reimbursed for things such as decoration and even food.

Event Liability Coverage

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

For instance, if you have kids invited to a wedding and they accidentally knock off all the crockery. This small accident may lead to a huge financial loss as well as physical injuries to anyone who could be standing too close. The event liability coverage will cover the property damage as well the medical bills till a specified amount.

why to get special event insurance

Liquor Liability Coverage

If your event serves or sells alcohol then it is important to have liquor liability insurance. Additionally, some venues mandate you to have liquor liability insurance if you are hosting a wedding.

However, the amount of liquor liability coverage you get also heavily depends on the state you are in. Every state has a different Dram Shop Law requirement.

Note: Dram Shop Law allows businesses to be held 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 certain incident is to lead to death or property damage.

For example, a person gets really drunk in the party you have hosted. If in the state of intoxication, they end up hurting someone else, then you are going to be liable for the financial expenses. In this situation, liquor liability coverage can help you with unnecessary expenses like these.

Food Liability Coverage

Generally, food insurance is important for people who run commercial food businesses. However, in an event where you are selling food or serving food to your guests, it is recommended to get coverage. The reason for this is to cover all bases if your guests’ health is compromised due to the food you are serving.

Suppose a guest who was invited to your event gets sick due to food poisoning. While getting food poisoning is rare, it can happen to anyone. In this case your guest may even decide to hold you accountable legally or financially. Having a food liability coverage in your special event insurance can help you deal with a situation like this.

How Much Does Special Event
Insurance Cost?

Events are usually a joyous occasion. There’s so much fun and laughter. But to have an event with complete safety is also important. However, safety in terms of event insurance comes with a small price.

According to Insureon the average cost of events based on number of days are:

    • One day private event: The average private event insurance cost is $182.
    • Two-ten days commercial event: The average premium cost is about $250
    • More than 10 days commercial event: The average coverage charge may exceed above $257

There are various things that make up the cost of an event insurance policy. They are explained as the following:

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Location 

Where you organize the event makes a huge difference in the pricing of special event insurance. For example, an outdoor wedding costs higher to insure than an indoor weeding. Not only that, 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 number of people mean more possibilities of accidents. Insurance rates may also defer based on how many children you may have in your event.

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 many 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 with 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 feel like the two sides of the same coin.

According to MyWalletJoy about 92% of all weddings serve alcohol and the average cost of serving alcohol at a wedding is above $2500.

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

    • Coverage against claims on alcohol-related incidents when guests may be inebriated
    • Some policies also cover situations where your guests may suffer from alcohol poisoning

The annual average cost for liquor liability insurance is between $900 to $1200. However, liquor liability insurance for weddings can be bought within $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
    • Halloween parties
    • Graduation parties
Here’s the list of public events which can be covered by special event insurance:
    • After game parties
    • Movie screenings
    • Book launch
    • Graduation ceremonies
    • Education fairs
    • Business conferences
    • Award ceremonies
    • Galas
    • Charity events
Note: If the event you are planning isn’t present in the list above then call your insurance company to get customized coverage.
how to get special event insurance

Getting Married?
Consider These Insurance Policies

The Wedding Report says that in 2020, a total of 1,267,877 weddings happened in the United States. It is estimated that the average wedding cost in 2020 was $20,286. Weddings are a lavish event but equally common.

For most of us, weddings are one of the most special occasions and on such important days you deserve to be secure. Special event insurance or wedding insurance is just the thing you need to add as a safety net to your special day.

An article on Forbes states that there are various other policies that you should consider buying if you are planning to get married. Marriage is a big step, there are several promises made for when in sickness and in health. As for insurance, you should check out these policies:

Travellers Insurance

Almost every couple travel after their wedding. So, having a good travel insurance or flight insurance will provide you with that extra safety on your honeymoon or any romantic getaways.

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Homeowners Insurance 

You are likely to buy a home once you have decided to start a family. With a good homeowners insurance policy, you can cover your beautiful home as well as your family from perils.

Car Insurance 

It’s only a matter of time before your family starts growing. A growing family indicates having one or more than one car in the family. 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. While some of them might be taken away to be exchanged, there are some gifts that are simply too valuable. Protect these precious items with a personal articles floater insurance policy.

Pet Insurance 

If you like your furry friends as much as your new beau then you should really invest in pet insurance. Pets are an integral part of the family and if something were to happen to them then the policy will have you covered.

when to get special event insurance

Wrapping It Up…

Special event insurance is a good investment for events that you have been planning tirelessly for. The policy not only covers you from a possible financial crisis but also helps you stay relaxed during your event.

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

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FAQs

By now, it seems evident that gap insurance is necessary. Here are some frequently asked questions about gap insurance:   

How Much Does Wedding Insurance Cost?

A general wedding insurance policy can cost between $150 and $500. The cost 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 

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 does have a certain limit. You should check with your agent regarding it.

Do I Need Special Event Insurance for an Online Event?

Yes, you do but only partly.

Since the COVID-19 crisis, many events have started happening online. While you may not need a full special event insurance 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?

No, the policy may not cover all the parts of your event. If your event has high risk activities such as horse riding or a bouncy castle then the policy may not cover it. However, the option to add such clauses or additional policies is available. You should contact your agent about it.

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 with event insurance then here are some options:

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