Special Event or Event insurance is exactly what it sounds like: Liability coverage for a particular event. In some commercial policies, events are automatically covered. However, that is not always the case. Even though a home insurance policy or commercial policy may cover the event, it may be smart to purchase a separate policy. They are typically relatively inexpensive and protects your primary liability from having to respond to a claim, which will then raise premium or in worst case scenarios, cause the insured to lose the policy altogether.
Events can be small or large in nature. Coverage for weddings is popular as is coverage for rodeos and truck pulls. Many venues will require proof of coverage as part of their standard rental contract.
When thinking about the need for special event coverage, think about the following things:
- Number of attendees
- Is liquor being served? If so, by who?
- Is food being served? If so, by who?
- Is coverage needed for set up or take down of the event?
- Is liquor liability coverage needed?
- Is coverage needed in case of poor weather?
Rating a special event policy is fairly simple. Cost is typically based on the type of event, its duration, and the number attending. Adding set up/take down coverage, liquor liability coverage, or weather-related coverage is an additional cost.
Be sure to read the policy carefully to understand all coverages, limitations, and exclusions.