Special event insurance protects your assets and investments if you have to cancel a specific event, say a wedding, due to some unfortunate incident. It helps cover the cancellation costs and any bodily injury or property damage you might have caused during that event.
Scope of Coverage
You can purchase two types of coverage to protect your planned special event- liability coverage and cancellation coverage.
Event Liability Coverage
This coverage protects you if you are held liable for any third-party property damage or bodily injury during your event. For instance, if the musicians you hired damage the furniture with their gear, your policy will cover the resulting repair/replacement expenses. Some policies may even cover accidents involving your guests, such as if one of the intoxicated guests slips and falls, their medical bills will be covered.
Event Cancellation Coverage
Suppose your particular event needs to be canceled or postponed unexpectedly due to certain uncontrollable circumstances. In that case, event cancellation coverage pays for all resulting expenses, including lost costs (say, processing fees or deposits already paid). However, if a bride or groom voluntarily calls off their wedding, this policy will not extend any coverage. Instead, you will be reimbursed depending on the limits of coverage. Meanwhile, you may also have to pay deductibles (out-of-pocket) before your coverage kicks in to pay off the remaining expenses.
Eligible Events Vs. Non-eligible Events
Events eligible for coverage include weddings, anniversaries, birthday parties, baby showers, religious ceremonies, etc.
Public events such as exhibitions, dance recitals, or sports events are generally not eligible for coverage. However, it would help to talk to your agent to better understand events covered under special event insurance.
Why Do You Need Special Event Insurance?
Considering the high cost of medical bills and lawsuits involving injured attendees, most venue owners will not rent out their space unless you provide insurance proof. Even if you have a general liability policy in place, the adequacy of the existing coverage will depend on the kind of event you are planning to host. Not all liabilities may be covered by your current policy, which is why buying separate special event insurance is recommended. This policy will not only pay for the cancellation costs (event cancellation coverage) but will also cover any property damage/ bodily injury involving your guests (event liability coverage).
How Much Do You Need to Pay?
The cost of coverage will depend on multiple factors such as
- Type of event to be hosted
- Expected rate of participation (number of guests)
- Level of alcohol consumption (intoxicated attendees pose higher risks)
How to Buy the Right Special Event Insurance?
A few tips to keep in mind while looking for a suitable special event coverage are-
- Estimate the amount of coverage you already have in place through auto, home, or other liability policies
- Know what is or isn’t covered, such as special attire, honeymoon expenses, gifts, etc.
- Choose an insurer who is licensed in your state.
- Ask your venue owners or vendors if they have liability insurance in place
At CAV Insurance Agency, we are committed to providing our clients with the richest insurance experience through our best-in-class personal insurance and commercial insurance. Looking to get yourself and your valuable assets covered in Wellesley, MA? Contact our experts today!