What exactly is event insurance, and who needs it? Many people are unaware they can protect themselves, their guests and/or clients from a vast array of things that could go wrong at an event.
Typical types of events that can be insured are weddings, corporate functions, bar and bat mitzvahs, graduation parties, and retirement and anniversary parties.
WHAT CAN YOU PROTECT
The two largest classes of insurance for events are liability and cancellation of services.
Picture this scenario. You are about to celebrate what is often viewed as the largest event in your daughter’s life, her wedding day. Your darling daughter, her mother, her friends, and a host of party planners have likely spent months in preparation for the big day.
She has likely enlisted the services of a wedding planner, event organizer, musicians, florists, and a host of other supporting cast so she can make this a memorable day for herself and her partner, friends, and family.
Undoubtedly, you have been enlisted to provide some financial resources (or a LOT of financial resources). What possibly could happen that would taint this beautiful picture?
Well, let’s look at some possible major hiccups that could occur on that day that you could hedge against by purchasing such insurance.
1. Her fiance pulls a runner. Of course, you don’t want to even think about your future son-in-law committing such an atrocious act against your darling daughter but it does happen. Believe it or not, for a price, some event insurers will provide coverage against such an act. For a premium, they will cover you for all, or a portion, of the costs you may have incurred in preparing for this day.
2. A major electrical blackout occurs and the venue you chose for the party and reception is closed; or the venue burns down the day before the wedding.
Likely to happen? Not really, but it’s for the odd occurrence that you purchase insurance; and, yes, these things happen in real life. In this instance your insurance would protect you against any losses incurred in prepayments, premiums you would likely pay to find a last-minute substitute venue and other such costs related to a last minute change of venue
3. Underage drinking resulting in an accident. If an underage boy or girl attends the wedding, gets access to liquor and later is involved in an accident, you could be held responsible. Many states now hold party organizers personally liable for any liquor-related accidents resulting from excessive liquor consumed at these events, but some event insurance providers will insure you against these claims.
4. Miscellaneous mishaps. Let’s say your 93 year-old Aunt Minnie slips, falls, and breaks her hip when she catches her heel on a loose piece of carpeting. You, and or your event facility can protect against these and other miscellaneous types of accidents that might befall your guests.
The two major purchasers of event insurance will be facilities that host public parties and events and the individuals
staging the events. The former will definitely want to offload the financial liabilities incurred; the latter should also consider the consequences of monies at risk for the kinds of mishaps mentioned and protect themselves to the extent they feel necessary.