Running an event involves high-risks and uncertainties. Unexpected weather changes and last-minute change of plans are just some of the untoward circumstances that come along with organizing an event. What is more, these unfortunate events cost a high-price which can leave an organizer bankrupt if the event gets cancelled. To protect you from crippling financial damages, apply for event insurance coverage. It will serve as your safety net once things don’t happen as expected.
Not familiar with event insurance? Here’s a quick guide to help you learn more about it.
Event Insurance Essentials that You Must Know
What is Event Insurance?
Event-related insurance policy covers and protects planners from damage claims in times of unexpected events like accidents, event cancellation, and others. Nick Sirianni of Chicago's Aon Corporation, an insurance and risk management agency, explains, “event insurance provides general liability for specific events.” Furthermore, planners can purchase additional coverage to acquire greater protection. As such, there are various types of events insurance to address a range of needs.
Types of Event Insurance Coverage
General Liability Insurance
This is the most basic insurance available to an event professional. This protects you and other parties involved, such as the technical team, catering, and the venue, for losses due to physical injury or damages to property that may arise in the course of your event. The policy covers the cost to repair damages and pay medical and other bills for reparation to the injury or loss. Most venues require this type of insurance because they want protection from any liability that may arise from your event.
This insurance policy covers you from any damage caused by the sudden cancellation of an event. It also includes costs and deposits already incurred before the cancellation. As there are innumerable factors that can stop the staging of an event, it is important for industry professionals to secure an Event Cancellation insurance.
Pro Tip: Get your event insurance as early as possible, since there is a tendency for the price of insurance to shoot up. Also, an early coverage for event cancellation can even help prevent an impending cancellation of event. For instance, if you get into trouble because of the venue and your event gets cancelled, the event cancellation insurance can cover the costs of moving to another venue for your event to push through.
Vendor Insurance Coverage
This type of event insurance is specifically intended for events involving food and merchandise vendors. A Vendor Insurance Coverage will protect you from the damages caused by a vendor you invited. Hence it is important to require this from the ones who’ll participate in your event. For example, if the food served during your event are contaminated, an insurance from the vendor’s end will protect you from shouldering the medical bills of the sick.
Employer’s Liability and Workers Compensation Insurance
In this type of policy, the event insurance serves as a protection for the employer, particularly in cases when an employee sustains an injury or contracts a disease related to or during the course of his/her work. Note that you may need this insurance even if you crowd source volunteers or hire freelancers.
Untoward circumstances frequently occur prior to the staging of an event--and usually, they come with a high price. Securing event insurance is an essential step to protect event organizers the protection from unexpected financial obligations that can result in hefty losses.
Did you find this article useful? Need help with event planning? Let us know your thoughts by leaving a comment below.