Are You Sure? The Basics of Event Insurance
Hurricane season is in full swing, and that got us thinking about event insurance for risks of all kinds. Here’s what you need to know
Published in October 2009 event savvy | insurance | Departments
{the basics} event insurance
A comprehensive contingency plan should always put in place the proper insurance coverage to reduce the risks inherent to each program, client or destination. Unfortunately, in today’s litigious society, not taking the time to determine the necessary insurance coverage to protect your business could be a very costly mistake.
Often, event coverage can be purchased on a per-program basis, depending on the number of attendees and days, type of event, and identified risks for that event. Types of insurances available to event producers include:
- Off-Premise Coverage
- Errors & Omissions Insurance
- Commercial General Liability
- Emergency Care & Medical Evacuation Coverage
- Inclement Weather — Hurricane Season (Florida)
- Travel Interruption & Cancellation
- Catering Endorsements
- Liquor Liability
- Wedding Cancellation/Postponement
— Kelly Stratton, Founder and President, Stratton Meeting & Event Services, Fort Lauderdale, Fla.
Top 5 Event Insurance Questions
1. What is the definition of “event planner insurance”?
In a nutshell, event planners should carry “professional” insurance coverage that protects the individual and his or her business from liability claims arising out of his/her operations. In addition, events should have liability and other coverages for claims brought against the event itself — for example, a slip and fall claim occurring at the event. In case of unforeseen circumstances, the event may want to purchase cancellation coverage.
— Lorena Hatfield, Marketing Resource Manager, K&K Insurance Group, Ft. Wayne, Ind.
2. Is event insurance expensive?
Event insurance can be very affordable. For example, K&K Insurance offers an online option for single-day, invitation-style events with fewer than 200 attendees for a $100 premium ($150 with host liquor exposure).
— Hatfield
3. What is the difference between “liability” insurance and “event cancellation” insurance?
“Liability” insurance offers protection against claims arising out of injuries and/or property damage. Event cancellation insurance safeguards against financial loss by providing coverage for unexpected mishaps, such as cancellation; interruption; relocation; extra expenses incurred to reschedule due to severe weather; non-refundable deposits lost from no-show vendors; and costs for replacement of lost photos, jewelry or gifts.
— Steven A. Lauro, Vice President, Aon’s Affinity Insurance Services, Jericho, N.Y.
4. What is the most important insurance to secure?
Event cancellation insurance should be a must-budget line item. Why? Because whether your event is held as scheduled or not, revenue is at risk from any number of causes outside your control. Possible incidents risking the event’s revenue include contractual obligations. For example, an upcoming sports-themed event at a San Francisco stadium includes construction of a ramp with a jump from the scoreboard. The price tag of the ramp contract alone is $500,000, and the event organizer is responsible for this expense even if the show does not go on. Other incidents causing cancellation and risk to revenue range from natural catastrophes, adverse weather conditions, and power failure to damage to rented venues or infrastructures and risk of strikes.
— Mark Di Perno, President, SportsInsurance.com, Lake Placid, N.Y.
5. Doesn’t vendors’ insurance have me covered?
Everyone has assumptions about what their liability exposures are, what insurance covers and what it entails, and most of those assumptions are wrong. For example, assumptions that if you are producing an event, the vendors are responsible for their own insurance claim. Many event producers are actually considered general contractors, as they are the “point man.”
— Brent Allen, President, Allen Financial Insurance Group, Phoenix