Whenever you plan an event, there are some things that you will want to know, especially if you want everything to run smoothly. More often than not, some event planners overlook a vital factor in business, and that is insurance. Having the right type of insurance policy can safeguard your business from unpredictable events you can never prepare for perfectly. And understanding your policy is crucial so that you will not be left stranded by your insurance company when the time comes that you need to make a claim.
Here are the most important things you need to know about special event insurance.
What is Special Event Insurance?
Special event insurance is a form of short term liability coverage that is designed to help protect businesses from liability claims when hosting an event. Some of the most common things that special event insurance will protect include physical injuries and damages to real property.
Does my Business Need Special Event Insurance?
When your business is hosting any sort of event that will be attended by the public, then you should make sure you call an insurance broker to get special event insurance. Generally speaking, special event insurance is not that expensive and you will be able to get a policy for almost any time frame.
If you are holding an event like an open house, you will want to make sure you have the proper coverage for your event, because if you plan on distributing alcohol there may be some additional premiums you will be required to pay. As an entrepreneur, you should remember the following as a general rule: If you plan on holding an event that either involves alcohol, renting a facility, or is open to the public, then you will want to make sure you have a special event insurance policy to keep you protected.
Some of the events that you can cover with special event insurance include birthday parties, weddings, New Year celebrations, and concerts. There are many more events that can also be covered under special event insurance, and if you are unsure if you will qualify, make sure you speak to a trusted insurance broker because they will be able to help you every step of the way..
What is the Cost for Special Event Insurance?
One mistake that people make is that when they are planning their special event, they often forget to budget for special event insurance. When these people find out that they need special event insurance, some of them will not want to pay the premium and they will decide against purchasing it. However, this can be a very costly mistake and you may end up owing a lot of money if someone files a claim against you.
The actual cost of special event insurance will depend on a few factors like the number of people in attendance, the location of the event, if the event is on land or on a boat, and if alcohol will be served.
Most of the time alcohol will be served at these events so you will want to make sure you are upfront and honest with your insurance broker. Otherwise, you may be violating the terms and conditions of your insurance agreement and you may not be covered. If you are holding an event on land for about 100 people, you can expect to pay around $500 for one day. If that same event wants to serve alcohol you may be looking at $1000. With that being said, if you are holding a smaller event the prices can be much lower.
According to Netsurance.ca, special event insurance plans can start as low as $50 for smaller events. This is a good thing to remember if you are holding a smaller event because oftentimes you may not think you need insurance for a small event, but it is always good to stay protected.
Additional Things to Consider
When holding a special event, it is important to tell your insurance broker about all the activities that your event will have. If you are going to be using fireworks or explosives, you will need to tell them because most insurance policies will require an additional premium to cover these activities that carry more risk.
Whenever planning an event, there are many things that you will need to remember so that the event goes off without a hitch. One of the most important things to do if you are holding the event is to get the proper special event insurance policy to make sure your business is protected. Insurance is a good way to make sure you are not exposing yourself to any risks and the coverage plans are generally very affordable and worth the price.
Next time you are planning an event of whatever nature, make sure you speak with an insurance broker so that they can help you stay protected from unforeseeable predicaments.
Interesting related article: “What is Insurance?”