Special events, like weddings and parties, should be a fun and exciting time in your life. You don’t want to have to worry about what could happen “if things go wrong.” So let event insurance take care of the worry for you! Event insurance is a specific type of coverage that can protect your special day in the case of forced cancellation, liability, and more.
What is event insurance?
Event insurance is coverage purposely designed to cover special events.
Event insurance policies are separate from your other insurance like home and auto, but some companies may allow you to bundle your special events insurance with your home policy.
What does event insurance cover?
Types of events usually covered by event insurance:
- Parties (anniversaries, birthdays, baby showers, bridal showers, etc.)
- Religious celebrations (bar and bat mitzvahs, communion, confirmation, etc.)
Typical event insurance policies will cover cancellation/postponement of the event, coverage for event photographs and videos, event gifts, special attire, special jewelry, and lost deposits. There are usually additional coverage options for liability insurance and liquor liability insurance.
Suppose you are hosting an event for business or fundraising purposes. In that case, you might want to purchase special event insurance through a business policy so you can work with an insurer who specializes in professional events. These kinds of events include conferences, galas, banquets, festivals, speaking engagements, conventions, and more.
What can cancellation coverage include?
Cancellation coverage helps protect you in the case you have to cancel or reschedule your event due to unforeseen circumstances like a catastrophic weather event or vendor issues. This will help cover the loss of deposits that you paid in advance as well as rescheduling fees associated with canceling or rescheduling.
Here are some examples of when cancellation coverage might be used for a wedding:
- You are hosting an outdoor wedding on a beach. A hurricane (which is considered a catastrophic weather event) is set to come through that weekend, so you need to move the wedding back a few months. Event cancellation coverage would help reimburse you for rescheduling fees incurred from your venue and vendors and/or any costs to find new vendors for the rescheduled date.
- Your caterer doesn’t show. Your event cancellation coverage would help cover the cost of the lost deposit this no- show coverage would be applicable for other hired services for the wedding as well, such as photographers or musicians.
- Damage to the wedding cake or spoiled food
Cancellation coverage is specifically for things outside of your control. It will not cover cancellations that are caused by the event holder, like if you decide not to host the wedding anymore or you choose to change your vendor at the last minute.
Make sure you go over your policy with your agent or advisor to understand which sorts of scenarios and reimbursements are covered under your event cancellation coverage. Keep in mind that cancellation coverage only reimburses up to your coverage limits, so make sure your limits are high enough to cover your entire event and vendors in the case of a cancellation.
Why should you consider liability coverage?
A lot of things can go wrong at a party. Event liability coverage helps protect you if you are responsible for property damage, bodily injury or personal injury to third parties. Many venues require the party host to hold event liability coverage in the case that guests or vendors cause damage to the venue, or someone gets injured on the premises. If it is your party, you could be liable for such damages (unless there is something shockingly wrong with the venue or one of the vendors that would mean they are responsible).
Make sure you purchase enough liability coverage. Your event insurance will only pay up to your coverage limits, and liability claims can get expensive quickly. Most venues will require or recommend at least $1 million in liability coverage for a large event. Chat with your insurer to understand what your event liability coverage does and does not cover with regards to vendors, caterers, and rented items.
Liquor liability insurance is a specific type of liability insurance that can protect you in the event you are found liable for an incident involving liquor. It may cover property damage or personal injury that is a direct result of liquor consumption, but this will depend on the insurer. You may want to chat with your event insurance company about including liquor liability if you’ll be serving alcohol, particularly if you’re having an open bar.
Do I need event insurance?
Weddings and big events can be a huge investment. If you had to cancel or reschedule, you could lose thousands of dollars. Event insurance is a way to protect your investment.
When you should consider event insurance:
- Some venues may require you to purchase event insurance. This protects the venue’s property while reducing its liability risks.
- Some vendors may also require event insurance, particularly if they carry a lot of associated liability.
- If you are hosting a large event that you could not (and would not) pay for a second time, you will want event insurance. if you have to reschedule or cancel the party, event insurance is the only way to ensure you don’t have to pay for all of those lost expenses out of pocket.
- If you are hosting a bar, you’ll want to consider event insurance to cover your increased risk and liability.
When you may not need event insurance:
- If you are having a small party, like a backyard wedding or BBQ, you may not need insurance. If you would feel comfortable paying to reschedule or cancel the party and you feel confident in your umbrella liability insurance, you may be able to forgo event insurance.
- Some umbrella policies include a form of event insurance.
When should I buy event insurance?
You should buy event insurance as soon as you make a vendor or venue deposit and/or make any purchases for your event. Most insurers will allow you to buy event coverage as early as two years before your event.
Event insurance gives you peace of mind, so you can focus on the moments that matter. Make sure you protect your planning, investment, and fun with the proper event coverage.
Still not sure if event coverage is for you? Chat with one of our Licensed Advisors about your event to learn more.