Special Events Insurance: When You Need It and When You Don't

If you thought you only needed medical and car insurance, you are wrong. Every time you have a special event or if you run a business, having an insurance cover is a must-have.

Whether you are preparing for an event to celebrate a milestone in your personal life, profession, or your athletes, it is advisable to have a unique insurance cover. It will cover all forms of liabilities during the event. But, what is special events insurance? Read on to learn more about this insurance policy, including when you need it and when you do not.

What is Special Events Insurance?

Special events insurance, also known as one-day event insurance, refers to a policy to cover your investment during any event. In case of unexpected activities during the preparation of your event leading to cancellation or loss, such a policy will cover all the costs. Additionally, the policy can cover any hospitalization costs and medication from an injury on anybody during the event.

Usually, the special event insurance coverage is divided into two – liability coverage and cancellation coverage. In case your event gets cancelled for any reason, the insurance coverage reimburses you all the costs incurred and any other necessary fees. However, the reimbursement is only done up to your policy limit.

On the other hand, the event liability coverage protects your business and you against any losses resulting from injury or property damage. Policies differ significantly, especially considering the differences in the incidences covered. For example, some insurance policies will extend the cover to incidents caused by people attending your event. It is advisable to be aware of the events your insurance policy covers.

When Do You Need Special Events Insurance?

When you are holding an event for a friend, a co-worker, or a loved one – or you are planning for an occasion for a business opportunity, you want it to proceed smoothly without any hitch. But, that may not be the case – a guest may get too drunk, and trip or your event planner may disappear even before the day of the event.

Being prepared in advance and taking all the necessary precautions can help you avoid being stressed before, during, or after the event. A special insurance coverage is something you cannot miss when planning your event.

So, when does special events insurance become necessary?

Events Covered by Special Events Insurance Cover

The special event insurance does not apply to all types of events. You will need this type of insurance cover if you are holding private events.

If you are planning any of the events above, it is advisable to buy the insurance cover early in advance. The best time to do this is to buy the coverage immediately you start making purchases or after you make deposits for items or services to be used during the event.

Some insurance companies have their limitations in terms of when to buy the insurance. For some, you cannot buy the coverage three weeks to the event or two years in advance. Thus, make sure you liaise with your insurance provider to get this clear. You don't want last-minute frustrations when preparing for your event.

Events Not Covered by Special Events Insurance Cover

Notably, not all events are covered by the events insurance policy. The special events insurance policy does not cover bachelorette/bachelor parties. Additionally, specific categories of business functions like corporate or private parties and fundraisers are not eligible for this coverage. It is advisable to talk to your insurance agent to determine what events can or cannot be covered by this policy.

What is the Cost of Special Events Insurance?

The amount you will pay for a general liability policy for your event will depend on several factors. The most common elements that influence this cost included the venue, event type, whether the event will have alcohol or not, and the expected number of individuals who will attend it.

Since events are often different, you can expect to pay around $350 for a general liability insurance for your event with no liquor liability. However, the cost will rise to about $750 if you will have liquor during the event.

Such estimates are evaluated from the idea that intoxicated attendees have a higher chance of causing more property damage and injury. A similar approach is used when comparing the number of attendants; the larger the crowd, the higher the probability of more damages and injuries.

Why Should You Buy Special Events Insurance?

As a business owner or an individual planning for an event, you will need special event insurance. Such coverage is essential if you do not have a general liability policy. You will not convince any venue owner to give you a venue without having liability insurance. Additionally, you cannot risk servicing claims from injuries because the lawsuits are quite costly.

Should I purchase events insurance if I already have general liability cover? If this is your concern, the answer is that it will depend on the level of protection your event demands, the scope of your available policy, and the nature of the event you are planning.

In an event where you will be selling liquor, liquor liability coverage will be necessary. The reason for this is that your general liability insurance doesn't cover liquor liability. So, you will have to buy special events insurance.

Overly, special insurance cover is necessary when holding any event as it protects you from eventualities leading to cancellation, injuries, or property damage during the event. With such coverage, you prepare for the event and hold it without the worry of any expenses resulting from the event because they are all covered.

Final Thoughts

When you have an event forthcoming, it is advisable to take special events insurance to cover it. The liquor liability cover or the cancellation insurance protects you from any eventualities that may come before and during the event.

It is advisable to engage a reliable insurance provider to get the most benefits from such coverage. If you are looking for insurance cover for your fitness facility, get in touch with NEXO Fitness Solutions and protect what matters the most to you. Call 310-937-2007 to apply for special event insurance that is tailored to your specific needs!