No matter how much time you spend planning an event, you can’t account for everything. The keynote speaker may miss a flight and their speaking slot. An entertainer could come down with a case of the flu days before they’re scheduled to attend. A power failure may knock out the sound system moments before the big event.
When guests don’t get what they paid for, you may have trouble on your hands. If it’s possible, you may want to reschedule the event, but that still leaves you with bills to pay. Vendors who showed up still want their money. Guests who can’t attend the rescheduled event want their money back. Even worse, you may need to completely cancel the event, which leaves you with no way to recover your costs. That is where event insurance can help.
What Is Event Insurance?
Event insurance includes cancellation and liability policies that protect organizations and individuals hosting an event when the original plans change or damages are incurred at the event. This protection applies to events of all sizes, from birthday parties and conferences to music festivals and trade shows. No matter how big or small your event is, you can protect yourself from the unknown.
If you’re a host who has to cancel, modify, or postpone the event, an event cancellation insurance policy can reimburse you for related expenses so that you’re not stuck with the revenue loss while still needing to pay vendors. Event liability insurance also protects you when someone sustains an injury or causes damage at the event. In addition to general liability protection, coverages also include the following:
- Liquor Liability: Takes care of damage caused by someone consuming alcohol at the event
- Non-Owned Vehicle Protection: Pays for injuries or damage when using a borrowed or rented vehicle
- Inland Marine: Covers the cost of replacing rented equipment that is damaged at the event
- Medical: Pays for medical expenses used to treat an injury that happened at the event
Why Do You Need Event Insurance?
When you put together an event, there’s only so much you can plan for. You can choose a venue, line up the entertainment, and hire a caterer, but you have no control over other variables. You don’t want to put on an outdoor concert if the band is stuck in an airport on the other side of the country. You may not want to continue a trade show during a disease outbreak. You can’t host a marathon in the middle of a hurricane. When the unexpected happens, event insurance steps in.
How Do Event Cancellation and Event Liability Insurance Work Together?
The protections provided by event cancellation and event liability insurance often work in tandem. Liability insurance protects you when something happens at an event that leads to injury or damage. For example, a worker driving a rented truck may have a fender bender with a guest. Liability coverage can help pay for the cost of repairing the vehicles and medical bills if someone is injured in the accident.
However, liability alone does not protect you if the event can’t take place. For that, you need event cancellation coverage. This type of policy protects you when the venue is suddenly unavailable or if the weather makes it impossible to safely continue the event. Whether it’s an earthquake, wildfire, severe weather outbreak, or national emergency, you have protection from lawsuits and other potential financial damages.
What Additional Coverages Should Event Planners Consider?
In addition to event cancellation and event liability insurance, event organizers should consider other policies that protect against specific conditions.
- Cost Containment Insurance: Weather events can have a big effect on the budget. A cost containment policy helps cover the cost of removing snow, dealing with power outages caused by weather, and increased heating and cooling costs during abnormally cold winters or hot summers.
- Rain Insurance: A little bit of rain may not stop the event, but it’s nice to know you have some protection when the rain is too much to let the festivities continue. With this type of policy, you can establish how much rain is enough to cancel the event before it kicks in to help you cover the lost revenue.
- Weather Insurance: Although event cancellation insurance does offer some protection from adverse weather, event planners may want to consider additional weather insurance for their events. This coverage can be useful for mitigating lost revenue from concessions and parking.
- Income Stabilization Insurance: Income stabilization weather insurance is a business interruption tool specific to a reduction in revenue tied solely to weather. Choose between seasonal and annual income stabilization weather insurance coverage to cover your exact needs for the lowest price possible.
ESP Specialty offers comprehensive event insurance policies that clients can customize to fit their needs. Our coverage extends around the world, so you have the protection you want no matter where you are. Contact us today to tell us about your event and discuss your coverage needs and options.
Go Ahead — We’ve Got You Covered.