Should You Purchase Event Insurance?

Planning an event can mean that a considerable amount of funds are going into it. Without some form of security, a company may stand to lose a considerable sum of money if an unforeseen incident or unfortunate events happened to occur in relation to their event.

That is why it is so important to purchase event insurance before beginning the process of event planning.


What Is Event Insurance?

Event insurance is a way to protect any invested funds that are associated with a specified event. This coverage is usually very general and basic, but can be tailored to fit almost any special needs of an event.

For example, additional coverage may be added to include liquor liability or event cancellations by any of the companies that are providing a product or service for the event.

Event insurance policies are customizable for each event to ensure that there aren’t gaps in coverage that could create financial loss.


infographics about event insurance



Why Is Event Insurance Necessary?

Events can produce a variety of scenarios where there can be the potential for loss resulting from accidents and incidents out of the organizer’s control.

It is necessary to protect not only the company or individual purchasing the policy, but may also extend to cover the vendors attending the event and guests.

It is a must for any events especially those that cost a considerable amount to create or where there will be large numbers of people or families in attendance.  



What Does Event Insurance Cover?

(1) The basic general liability coverage that is included when the policy is purchased protects the company hosting the event from property damage from their own actions or any third parties working for the company organizing the event.

(2) In addition, the coverage includes any bodily injuries to attendees or vendors that may result from accidents.

(3) Liquor liability is recommended if there will be an alcoholic beverage service anywhere at the event. This coverage protects servers, bartenders, and organizers in the event someone becomes intoxicated and any damages result directly or indirectly from that incident.

It also provides coverage if a minor is able to obtain alcohol without the knowledge of the servers, bartenders, or event organizers. 

(4) Accidents can happen at any time, and so can vandalism.

Not only does event insurance provide protection from damages to the premises as a result of an unexpected event such as equipment failure, weather, and a variety of other mishaps, it also covers the policy holder in the event of vandalism to the premises. 

(5) In the event there is an injury because of an accident at the event, the event insurance policy will cover medical payments, up to the specified policy amount, of those who are injured while in attendance.


3 special event insurance coverages

(6) Event planners may also add the vendors or associates hired to help work on the event to their policy for better coverage. Many will request that they be added to the insurance policy before beginning their work with the organization hosting the event for better security. 

(7) Event insurance will also protect the parties named on the policy if the event must be cancelled for any number of reasons including the weather.

This would protect those parties from contractual liabilities as a result of those actions. In addition, it would cover the loss of deposits and other monies used to get locations and services for the event. 


In many cases, some vendors and service providers will refuse to work with an organization that doesn’t purchase insurance and offer to list them on the policy and some states require that the organization hosting the event must have insurance.

Essentially, event insurance is a way to protect everyone involved with making the event happen and offers peace of mind. It is important to know anything can happen when planning and hosting an event, and as a result, it is critical to purchase event insurance to protect everyone financially. 

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