You’ve invested a small fortune in organizing a car show, but since a hurricane is headed your way, it’s going to have to be postponed till the weather settles and you’ve repaired any damages. Or perhaps you’ve organized a music festival, but one of the main acts is a no-show — and the attendees want their money back. Or maybe you’re hosting a networking event, but the caterer didn’t inform the guests about allergens in the food and now somebody’s been taken to the ER due to a food allergy.
Fortunately, in instances like these, having event insurance can save the day, as it covers property damage and bodily injury liability. After all, as a small business owner, you’ll be looking to generate money from most — if not all — of the events you organize. So losing money due to postponing events, reimbursing vendors and attendees, or, in the worst-case scenario, suffering liability losses can pose a significant financial challenge to your business.
Most insurers that offer commercial event insurance or event liability insurance will customize your policy to your event’s needs. Potential coverage options include:
- Cancellation of the event: This covers the costs of canceling the venue and vendors. It may also include costs associated with reimbursing attendees.
Breach of contract of vendors: This provides coverage for any damages associated with vendors not fulfilling their contracts, for example if a caterer fails to show at an event. - Property damage to the venue: This covers the costs of damage to the event location, such as broken windows or other types of damage.
- Bodily injury to attendees: This provides coverage in the unfortunate event that an attendee or guest is injured during the event, for example due to a slip and fall on a wet floor.
- Host liquor liability: This provides coverage in the event that an accident occurs and alcohol served at the event is a factor.
The amounts of coverage usually vary depending on the type of the event, the size of the venue, the number of vendors involved and the number of attendees you’re expecting. For example, a relatively small awards ceremony is likely to have lower coverage limits than a large music festival where you’re expecting tens of thousands of attendees.
Event Insurance: A Smart Investment
No matter how hard you try to dot all the i’s and cross all the t’s, unforeseen things can happen that can make your event run less than smoothly. And when you consider the financial losses you can incur, getting event insurance is more than simply an option: It’s a smart business decision that can protect far more than your event.
