Whether you are a bride-to-be, a seasoned entertainer or even just the employee tasked with organizing a company get-together, you may have already started putting together a checklist.
- Venue: Check.
- Guest List and Invitations: Check.
- Food and Beverage: Check.
- Event Insurance: What?
While you might be more likely to hear it referred to as Wedding Insurance, a special event insurance policy offers valuable financial protection for all kinds of social functions, from galas to art exhibitions, company parties, class reunions, receptions, birthday parties and more! If Event Insurance is not already on your checklist for a successful gathering, take a look at how this affordable coverage can help you pull off a fabulous party – without breaking the bank.
Event Insurance: Types of Coverage
Finding the right policy for your gathering or celebration begins with an understanding of what is and is not covered by One Day Event Insurance. There are two main types of coverage, Event Cancellation and Event Liability.
Event Cancellation Coverage
To protect the policyholder from financial losses resulting from an unanticipated mishap that could not be prevented, such as severe weather or a caterer who is a no-show.
It is important to note that cancellation coverage is specifically for issues that are beyond a person’s control. Expenses that result from voluntarily canceling a planned gathering, as in the instance of a bride or groom getting “cold feet,” cannot be recouped.
Below are some Cancellation Coverage example scenarios that could be covered by Event Insurance:
- A florist you hired unexpectedly goes out-of-business.
- The DJ gets stomach flu the morning of your organization’s gala.
- Shuttle transportation for attendees does not show up.
- Your wedding dress is ripped by the tailor.
- A photographer loses all the guest photos from your fundraiser.
Event Liability Coverage
To protect the policyholder from claims of injury or property damage resulting from an occasion. This is the most common type of Event Insurance, and many venues require their clients to carry at least a minimum amount of liability protection in order to use their facility.
Liability coverage is particularly important if you will be serving alcohol at your gathering. However, incidents can happen at even the most carefully planned soirée – so do not skimp on this just because you have a dry menu!
Below are some Liability Coverage example scenarios that could be covered by Event Insurance:
- A guest at your party spills red wine on a tapestry.
- The caterer you hired backs into a parking sign and breaks it.
- Wedding guests trip over an auxiliary cord and need medical attention.
- An employee gets into an accident driving home from your company party.
- Multiple attendees get severe food poisoning from food served at your luncheon.
Do I Need Event Insurance?
For a backyard barbecue with family, Event Insurance would probably be overdoing it. But if you are planning a gathering with a sizable budget or the potential for a lot of attendees (or both!) this type of policy could be a smart financial decision.
Consider these suggestions to help you evaluate your need for Event Insurance:
- Identify any protection that is already in place.
If you are using a licensed caterer, they may already be carrying their own liability and/or host liquor liability protection. This language is typically included in their business contracts. Similarly, if you are hosting a wedding at a designated event facility, they will likely be carrying their own liability coverage. On the flip side, if you are using a mom-and-pop caterer or getting married in a relative’s backyard, your coverage needs will probably be much greater.
The bottom line? Read all of the fine print carefully before submitting contracts to a vendor for your party. You may even consider contacting an Insurance Broker to review these documents beforehand. At the very least, send them a copy of any signed contracts so they can help you identify areas where you are exposed to risk – and then purchase Special Event coverage before your fête to help close the gaps!
- Review your options through existing coverage.
Auto, Homeowner’s and Renter’s Insurance policies generally include a limited amount of personal liability coverage, which may (or may not) be sufficient for your celebration. Believe it or not, some credit cards also offer financial protection that is similar to the benefits offered by Event Insurance.
If a credit card offers Fraud Protection, for example, you may be able to file a dispute for charges placed by a vendor who breached contract – such as the no-show caterer we mentioned above. Some credit cards also offer Emergency Travel or Travel Insurance, which could help foot the bill for issues getting to and from a destination wedding, or getting committee volunteers to your headquarters after a shuttle gets stuck on the side of the road. And of course, you can’t forget the rewards points!
- Don’t wait until the last minute.
There’s no need to spend a significant amount of time worrying about what could go wrong at your big celebration. At the same time, you cannot put that thought in the back of your mind – Event Insurance coverage cannot be purchased the day of your party or after the punches start rolling. You must plan ahead!
In general, you typically cannot purchase Wedding and Event Insurance more than two years before the date of your occasion, or any later than 15 days prior.
One final note about Event Insurance: Not every gathering can be covered by this type of policy. Bachelor and bachelorette parties, sporting events and fireworks displays generally are not covered, along with some private corporate parties and other business functions. Contact the team at Webb to discuss the details of your gathering.
Planning for Success with Webb Insurance
As an event planner, you’ve got a lot on your plate. At Webb Insurance in St. Charles, our goal is to help make your job easier by providing the peace of mind that comes from knowing your event’s budget is projected from whatever life throws at you – whether that’s a torrential downpour or a floral arrangement that never shows up. We would love to hear about your upcoming celebration, and how we can help protect your budget with Wedding Insurance or Event Insurance that is tailored specifically to your needs.
Ready to add Event Insurance to your checklist? Contact the Webb agency today to set up a free, no-obligation consultation about your upcoming plans.