Understanding Event Insurance: What You Need to Know

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Events are fun and enjoyable, but it doesn’t mean nothing could go wrong. This is why smart event planners secure event insurance to protect them, their clients, and the attendees from any potential hiccups that may occur leading up – and during – to the big day.
 
Remember that large crowds can also bring large surprises. So, to ensure that you’re prepared for the unexpected, we discussed here how to insure an event, the event insurance policy you need, and why it’s a must for your next soiree.

Understanding event insurance

Understanding Event Insurance: What You Need to Know
Event insurance protects you from any liability or damages that may occur during the gathering. And like any insurance, it comes in different types with varying coverage and inclusions.
 
Overall, insurance can be bought for almost all types of events, be it weddings, corporate gatherings, concerts, trade shows, exhibitions, and whatnot. It’s the event planners, organizations, promoters, and vendors who often secure event insurance to cover a wide range of assets.
 
To give you an idea, here are the most common event planner insurance needs:

Special event insurance

Special event insurance companies provide what’s probably the most important coverage. This type of insurance protects you from financial liabilities in case claims arise from your event.
 
Also, this insurance comes in various subtypes, including the much-needed general liability insurance. This is necessary to protect you in case someone gets injured or sues you due to an event-related accident.
 
Let’s say someone fell off the stage and got injured during your event. Your general liability insurance will cover the person’s hospitalization and your legal defense fees should they decide to file a case.
 
There’s also a liquor liability insurance that falls under the ‘special’ category. This could be a multi- or one-day event insurance for celebrations that involve alcoholic beverages. Take note that the coverage for this insurance depends on the type of booze and other factors present in your event.

Event cancellation insurance

Did your client cancel the event due to a change of plans? Or did the weather force you to shut down the event? In these cases, event cancellation insurance will help you recover non-refundable deposits you already paid for to different vendors and venues.
 
With this event planning insurance, you will protect your business from revenue losses. It can be due to weather conditions, postponement, client cancellation, and other situations. Make sure you read the fine print well to see what’s included in your policy.
                                       
While not all event planners invest in this insurance, it’s a smart move, especially for big events. Also, if the setup will be weather-permitting, you should secure yourself with this policy to avoid losses.

Professional liability insurance

Professional liability insurance provides event liability insurance coverage in case your client or stakeholder claims they suffer from financial losses due to your negligence.
 
Let’s say you’re an event planner for a corporate event, but the security provider failed to deliver proper assistance to VIPs. That led the company to lose a very important deal. In case the company claims it’s your fault and decides to sue you, this liability insurance will cover your legal defense or settlement fees.

Business equipment insurance

As its name suggests, business equipment insurance protects physical equipment that you own or rent for an event. Let’s say you booked an LED video wall rental from us, but it sustained damages during the event. Or maybe someone knocked over the karaoke system you booked from us.
 
In these cases, equipment insurance will cover the replacement or repair, so you wouldn’t have to shoulder the costs.
 
This insurance for event planning business will be a good investment, especially if you’re renting or handling AV equipment regularly. You should also get this policy if your event involves expensive equipment that would cost a fortune to repair or replace.

Worker’s compensation

Worker’s compensation or worker’s comp is necessary if you have employees, part-time or full-time, working for your business. This professional event planner insurance is required in California, even if you only have one employee.
 
If any of your employees get sick or hurt during the event or any work-related activities, you’ll be required to pay for worker’s compensation benefits. Failure to comply with this requirement will spell serious legal troubles for your event planning business.

Why insuring your event is very important

Understanding Event Insurance: What You Need to Know
Event insurance is all about one important thing: protection. So, if you’re a beginner event planner, here are some of the reasons why the cost of insuring events should be a priority on your budget:
 
  • Venues require insurance. Almost all event venues will require liability insurance coverage. Other venues will also require special policies, depending on the type of event you’re hosting. Make sure you inquire about this and secure the necessary coverage to avoid any hassle on your big day.
 
  • Vendors require insurance. Aside from venues, various event vendors also require insurance coverage to protect their own business. Here at Rent For Event, we require insurance from our clients to protect our equipment during the rental duration.
 
  • Accidents may happen. Anything can happen during an event, even accidents and injuries. And if it does occur on your own event, insurance will save you from serious financial losses.
 
  • The weather is out of your control. While you can plan your event to perfection, bad weather can easily spoil everything. In that case, insurance will prevent you from losses if the event gets canceled or postponed.
 
  • It boosts client trust. Companies and organizations looking for an event planner will prefer one who can give them excellent service and protection during the event. With that said, your potential clients will see comprehensive insurance coverage as a positive sign that you’re an expert in your field.

Considerations before you buy event insurance

If you’re new to event insurance, it’s important to know what policy you need to buy and why. So before you buy one, you should know these insurance tips for events first:
 
  • Consider your event type. Each type of event requires unique insurance coverage. For example, a sporting event will have a different insurance requirement than a wedding. Aside from that, you have to factor in the size of your crowd, possible risks, and your event setup.
 
  • Determine your event’s scale. The bigger your event is, the higher its potential risks could be. For example, festivals with huge crowds are more likely to have untoward incidents than an intimate gathering.
 
  • Know the policy duration. For multi-day events, you have to ensure that the entire duration will be covered. This includes the time for setup, actual event, and the cleanup afterward. Take note that untoward incidents can occur before, during, and after your event, so make sure all these periods are covered.
 
  • Communicate with your vendors. As we’ve mentioned earlier, event vendors often require specific insurance coverage. Make sure you ask about this so you can secure the proper coverage ahead of your event date.
 
  • Know your budget. Each insurance provider has varying pricing and coverage. Take the time to compare each one so you can find the best policy that suits your budget and the event’s requirements.
 
  • Know your contractual obligations. To know what type of coverage you need, you should check your vendor contracts, venue requirements, and alcohol liability. This way, you can save yourself from potential hiccups or even a full cancellation.

Common misconceptions about event insurance

Understanding Event Insurance: What You Need to Know
Aside from the tips for event insurance we discussed above, we also think it’s important to debunk some misconceptions about this topic. Here are some of the things we always clarify to our clients when they are planning an event with us:
 
  • Event insurance is only for big events. This is a big nope! Even the smallest event will need – or even require – a certain type of insurance. Take note that even a small dance party can lead to injuries, and liability insurance will protect you from any financial losses.
 
  • Event insurance covers everything. Always remember that any insurance – be it for events or other fields – has very specific inclusions. Its coverage is outlined in the policy, which you should read thoroughly.
 
  • Event insurance is only for outdoor events. While outdoor events surely pose more risks, like bad weather, it doesn’t mean indoor gatherings won’t benefit from comprehensive insurance coverage.
 
In short, whatever event you’re planning, you’ll benefit from having insurance coverage!

Plan a hassle-free event with Rent For Event!

If you want to have a hassle-free, safe, and successful event, contact us at Rent For Event! We are a full-service event production and equipment rental company for all types of events nationwide.
 
With us, you’ll have world-class audiovisual solutions and an elite AV team with 20+ years of industry experience. We’re trusted by big companies, such as Netflix, BET TV, CBS, and TikTok. Whether it’s a big or small event, you can count on us to deliver the best AV experience to wow your guests.
 
If you want to know more about our audiovisual services for events, contact us today to talk to one of our experts! Aside from understanding event insurance, we’ll also give you a free quote!
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