What Is Event Insurance and Why Do I Need It?

Hosting an event can bring an indelible sense of satisfaction – that is, assuming that it all goes well. Despite being exciting, the truth is that event hosting can be quite difficult without a properly detailed battleplan.

To make matters worse, your amazing event can be surprised by an unforeseen accident or circumstance that might just ruin it all. The best way to protect yourself is to prepare well beforehand, which also includes purchasing insurance. 

If you’re new to event hosting or need a quick primer to bring you back up to speed, then make sure to check out the article below, where we’ve detailed the basics behind insurance as well as the importance of recuperating incurred losses.

What Is Event Insurance?

Simply put, event insurance is a form of protection against anything that can go wrong during an event, such as a sudden fire or a brawl. For example, any personal injury or damage to property that takes place within grounds of the event leaves the host directly responsible for it, which means that they can be taken to court and sued.

Event insurance covers financial compensation for these situations. Therefore, if you are sued or called to provide damages, then your insurance company can pay it off for you.

Here are the four main areas of benefit that event insurance covers.

General Liabilities

Any bodily injury or damage is classified as a general liability. This happens quite frequently regardless of venue or event. For example, even a calm event such as an opera concert might have dry or uneven flooring, which can lead to a trip and fall, and eventually to a lawsuit.

Liquor Liability

People lose control when they drink too much. Liquor liability insurance is a form of protection for businesses or venues that sell alcohol and are thus at risk of an intoxicated patron or guest. This insurance is essentially a requirement for any event that has alcohol.

Lawsuit Expenses

In the case of a lawsuit, insurance can help cover the expenses associated with hiring an attorney and building a defense. Lawsuits can be very resource-demanding, so experienced event managers always tend to gravitate towards insurance.

Cancellation Coverage

This type of insurance covers for when your vendors cancel their services, especially at the last minute. Examples of vendor expenses that can be reimbursed are from photography, catering, or performing.

Do I Really Need Event Insurance?

If you are hosting an event, then yes. Most venue locations will require some form of insurance before agreeing to work with you. While you might come across venues that don’t require event insurance, the mere notion of receiving financial support to fund your legal expenses if you have been sued over a freak accident is reason enough for most to opt for it.

Odds are that you think nothing will happen during your event, but given today’s litigious atmosphere, even the most minor of issues could quickly snowball into a problem that could threaten your future safety and comfort.

Even assuming that your event will be particularly calm, your guests are still susceptible to:

  • Slipping or tripping and thus sustaining an injury
  • Potentially entering conflict with another person
  • Breaking or damaging an item or piece of property
  • Having their belongings stolen or tampered with

If any of these happen, then event insurance is going to be your best way of getting out of a lawsuit with your stress levels intact. Don’t think accidents won’t happen to you – they have a habit of surprising the confident!

Protect Your Guests, Protect Yourself

It is as they say: one hand washes the other. Taking proper care of your guests involves precautions against potential dangers. Not only will you gain a reputation for being a safe and trustworthy host, but you will also protect yourself and your financial wellbeing.
Wondering how to purchase event insurance? Here’s our choice of process!


TBN Editor

Time Business News Editor Team