Hosting events such as concerts, festivals, conferences, trade shows, sporting events and celebrations subject businesses to a variety of liabilities and business risks that must be considered to avoid costly litigation or other losses. Appropriate coverages for events include property insurance, general liability insurance, employer’s liability insurance and cancellation insurance.
A property insurance policy protects equipment at events ranging from sophisticated audio-visual systems to folding chairs—whether it is owned, borrowed or hired for the event. The policy generally covers property while in transit to and from the event as well as during the event.
Special Event General Liability Insurance
A special event general liability insurance policy provides broad protection for situations in which an event holder or concessionaire must defend itself against lawsuits or pay damages for bodily injury or property damage to third parties. When alcohol is served without a transfer of money, the policy can also include host liquor liability. Limits and premiums vary greatly depending on the type of event and location.
Employer’s Liability Insurance
Employer’s Liability Insurance is generally a part of workers’ compensation policies and it protects your business against lawsuits due to employment related injuries or illnesses attributed to alleged employer negligence.
Similar to business interruption insurance in other industries, cancellation policies are essential to preventing serious financial consequences in case of an event’s cancellation. These policies can be useful even when the event is not entirely cancelled as expenditures due to unforeseen circumstances (such as alternate forms of transportation to the event during inclement weather) are generally covered as well. The policy generally covers all perils that are beyond the control of the event’s host, including inclement weather, a speaker dropping out, strikes or disease outbreak. In some cases, the same policy can cover multiple events.
Policies are less expensive if they are purchased far in advance, and premiums range depending on the time of year, the type of event and the level of environmental risk in the surrounding geographic area.