You might plan for many meaningful events throughout your life, and doubtless, you will want them all to go smoothly. Unfortunately, there is never any certainty that this will happen. Unforeseen occurrences can derail your plans, risking the money you invested. This leads us to two questions: what is special event insurance, and what does this type of insurance cover?
To put it simply, this is a kind of insurance you can purchase to easily recoup your financial losses if something goes awry when you are about to enjoy the activity you had planned. Keep reading to learn more details about this kind of policy, including what this insurance does and doesn’t cover.
What Does Special Event Insurance Cover?
First, let us go over two of the most common types of insurance that fall into this category: special event liability insurance and special event cancellation coverage.
Liability Coverage
Sometimes, if you rent a facility for your special event, the venue may hold you or your guests liable for damages to the premises. They may also hold you responsible if someone is injured during your event. No one is happy to pay for those unwanted expenses.
Even if you are averse to getting liability insurance, many venues that you might rent for a special occasion require you to have a minimum amount of coverage. This way, if the band you hire scrapes the floor while moving its equipment around, your policy will pay for it. If a server falls while carrying a tray and sprains his ankle, this coverage can pay for his costly medical bills.
Since these incidents are not uncommon, you will probably feel a lot more confident going into your event when you know you paid for a policy that indemnifies you. Understand that there will be a coverage limit when you purchase this type of insurance. Usually, that coverage amount goes up if you are willing to pay for a slightly more expensive policy.
Also, these policies generally cover damage to the venue you rent but not necessarily to any of the equipment that a third-party vendor brings to the site. Be sure to read your policy’s fine print so you will understand any applicable limitations before the event begins.
Cancellation Coverage
Event cancellation coverage policies are considered separate from this type of liability insurance, though if you ask, you can sometimes get a package deal for both from the same provider. Special event cancellation coverage is meant to help you recoup your financial losses if you rent out a facility, for instance, and then the event has to be canceled due to circumstances beyond your control.
For example, you rent a facility for a wedding, only to have a major weather emergency ground all the flights into your city. Most guests are no longer able to participate, so you decide to reschedule. With the policy in place, you can regain the money you used to book the building where the event was to occur.
You can also use that money to find a replacement official to perform the ceremony if the one you originally hired has to cancel. You can use it to get a replacement catering company on short notice if the one you picked can’t make it because of a family emergency. Each cancellation coverage policy will have its own details, so read yours carefully to learn what it does and does not cover.
Additional Coverages
You now know the answer to the question of what is special event liability insurance, and we have also talked about the cancellation coverage that you will likely want to purchase with it. These two varieties are generally considered the most common and necessary types of special event insurance on the market.
However, add-ons are frequently worth considering. For instance, one policy addition is usually associated with weddings or events where attire and gifts comprise a major part of the celebration.
This add-on for gifts and attire will cover all the expensive presents that guests bring for a wedding, a quinceañera, or something similar. It will also cover the tuxedos for the ushers or the bride’s custom-made wedding dress. If attire or gifts are stolen or damaged, this add-on will reimburse you for those costs.
You can also frequently find add-ons that will cover and reimburse you if a bride or groom is active in the military and a call to duty prevents that person from attending the special day. Some add-ons even pay for professional counseling for emotional distress if a long-awaited event has to be canceled.
What Types of Special Events Can You Insure?
You may host several kinds of events where it makes sense to get this type of insurance. They include:
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Weddings: Weddings are an obvious occasion for which you may want to purchase this insurance option. The expense associated with a wedding can be significant, and you do not want to lose out on a security deposit if an emergency arises and forces you to change your plans.
- Religious Ceremonies: Religious ceremonies such as baptisms and memorial services may require a significant financial outlay; you should have the proper insurance coverage in place.
- Birthday Parties: If you are having an elaborate, blow-out birthday party for yourself or someone important in your life, it makes sense to rent out a large facility. The right kind of insurance ensures coverage if a thief steals the gifts or another catastrophe occurs.
- Baby Showers: Baby showers are parties where the mother-to-be usually receives all kinds of gifts that will come in handy when her bundle of joy finally arrives. You may want those to be covered by insurance, in addition to the facility you have chosen for the event.
- Anniversary Parties: A longstanding union between two loving people is always cause for celebration. These occasions often call for an extensive guest list with relatives and friends from far and near. You would hope everything will go off without a hitch, but it is best to still have a comprehensive insurance policy in place.
You should also know about one day event insurance. It’s similar to policies like the ones we’ve been talking about, but your coverage with this option will only last for one day.
What Events Are Not Covered?
You cannot purchase this kind of insurance for a few specific types of events. Bachelor and bachelorette parties are at the top of that list. These events can get a little wild sometimes, and most insurance companies are uncomfortable extending a policy for them.
It is also not possible to get this type of insurance for public events such as sports-related contests or exhibitions, dance recitals, political rallies, and fundraisers. You will also not be able to get a policy for some private events, such as certain kinds of corporate parties. If you are uncertain about whether you can get insurance for any of these types of events, you can always reach out and ask the venue or your insurance agent. They should be happy to answer any questions.
Is Special Event Insurance the Right Choice for Your Upcoming Occasion?
If you are already spending a significant amount on an event, you may be reluctant to pay any more. However, many venues that you can rent out for weddings, birthday parties, and other special occasions will insist that you have one of these policies in place. They will likely demand that the policy cover at least a minimum amount. It’s their way of protecting themselves if anything goes wrong.
If you can’t show proof of this kind of insurance policy, you will not be able to rent the venue that you have your eye on. Getting a policy does not just ensure you will get your first pick of facilities, though. It also means you can breathe a little easier knowing that if anything does go awry, adequate monetary compensation will soon be coming your way.
At the beginning of this article, we touched on two key questions: “What is special event insurance?” and “What does special event insurance cover?” You now have the answers. You know the practical reasons for getting these policies, as well as the events for which they’re suitable.
You should be all set to reach out to a representative at ESP. When you are planning your next event, you can contact us by phone at (877) 670-2377 or by email. With the right insurance policies in place, you can enjoy your upcoming event and make it memorable for all the right reasons.
