Large events like wedding receptions and parties can be enjoyable, but they can also lead to injury. The consumption of alcohol by members of a large group may result in falls or even fights, and damage to the venue can occur in a number of ways. Special event liability insurance gives those who stage events peace of mind. It may also be necessary to satisfy legal requirements or to obtain the use of a given venue.
- When a person is injured at a special event, he may attempt to hold the host of the event responsible. If the injured party decides to sue, the defendant may need some form of financial protection. Special event insurance will cover the amount of any awarded damages up to the limits of the policy. This allows the defendant to keep business or personal assets that might otherwise be used to pay the judgment.
- In some cases, the venue where you are holding your event may already own a special event liability policy if they hold events on a regular basis. In other cases, you will need to purchase your own policy to provide coverage. The venue owner may require you to provide proof of liability coverage as a condition of using the facility. Even if the venue owner offers her own coverage, you may want to purchase additional coverage if the owner's policy limits are relatively low.
Coverages and Limitations
- A variety of coverages and limitations apply to special event policies. Coverage usually extends to liability arising from event operations, the premises, personal injury and false advertising. The policy also indicates the duration of coverage, which is often a few days before to a few days after the event. Coverage may be limited to events that do not exceed a specific number of people and to one specific location. The insurer may not permit the policyholder to also be the owner of the venue.
- A good place to begin your search for a special event liability policy is with the insurer who provides you with other types of liability coverage, such as for your home, auto or business. Because you are an existing customer, you may be entitled to discounts that might not otherwise be available. Another option is to contact a specialty insurance company in your area or use the Internet to obtain multiple quotes. In general, special event coverage is relatively inexpensive due to the policy's short duration.