Event liability insurance

You can’t be too cautious whether you’re throwing your annual office Christmas party, wedding, or golf tournament. While these all sound like fun events , you can’t predict what’s going to happen. That’s why you should consider purchasing event insurance. It will mitigate various risk factors, including injury, damage to your reputation and financial risks. Additionally, you are responsible for the safety of your guests, making insurance a great preventative measure to take.

It’s important to understand the types of risks associated with your event. This will allow you to develop a process to prevent or reduce risks before your guests arrive. For example, you should have signage indicating the nearest first-aid station or emergency exit. Even something as simple as having alternative arrangements for your outdoor event if it rains can help. Are you ready to start planning? Let’s dive into the excitement of event liability insurance.

About event liability insurance

First off, what is event liability insurance? The purpose of event liability insurance is to help cover liability costs for the host in the event that an incident occurs. Some venues require liability insurance for you to host an event with them, but this isn’t always the case. Regardless, having an insurance policy can act as a safety net for the host in case something does happen. For more information, check out our glossary of insurance terms.

As the event host, you need to ensure all your guests are safe. One step includes purchasing an insurance policy. It’s a precaution to take, like adding security features to prevent car theft or people stealing from a store. This can help avoid potential lawsuits that can occur due to bodily injury or property damage. It’s important to choose the right event liability insurance for your event. Sometimes, you will need more than one type of coverage. We will discuss each one shortly.

Types of event liability coverage

Depending on the event you are hosting, you will need different types of coverage. In some cases, a police report may be required for a claim, which isn’t always true with a personal insurance claim. This is another reason to have an insurance policy in place before hosting a big event. Here are the most common types of event liability coverage to consider when hosting an event:

General commercial and third-party liability coverage

If you are renting a venue, you will likely require a specific amount of liability coverage. You usually get it through commercial and/or third-party liability coverage. It protects the organization and venue hosting an event if a person gets injured or their property gets damaged.

Liquor liability coverage

If a loss occurs as a result of serving alcohol at an event, liquor liability coverage will provide compensation for the damages. There are multiple forms of liquor liability insurance available. The one you choose comes down to the type of event you are hosting, but include the following:

Liquor Licence Act liability

Any damages that the host could be held liable for at the event are covered. It doesn’t matter whether or not their conduct was negligent.

Host liquor liability

The difference with host liquor liability is it covers events where alcohol is being served but not sold. This is common for businesses hosting staff parties.

Non-owned vehicle and equipment coverage

If your event is being held at a banquet hall with expensive cooking equipment and your volunteers are using personal vehicles, your broker will likely recommend this coverage. Non-owned vehicle and equipment coverage offers an extra layer of protection for the organization hosting the event. This coverage comes into effect when vehicles or equipment belonging to the venue or volunteers are being used.

Cancellation coverage

Events can be cancelled for a variety of reasons. Unfortunately, giving a short amount of notice can lead to cancellation fees or losing non-refundable deposits. The purpose of an event liability insurance policy is to protect you from the financial losses associated with various types of damages. Think of it as a way to protect your valuables and your guests' valuables, similar to luxury handbag insurance or insurance for your jewellery.

The additional step of getting insurance coverage makes a difference, but how are the costs determined? Next, we will discuss the factors that affect the costs of event liability insurance.

Aspects that affect the cost of event liability insurance

As an event host, you are responsible for your guests. Bodily injury and property damage can add up, which is why there are multiple factors that determine the price of your event liability policy. Let’s dive in below:

Nature of the event

The type of event you are hosting affects the costs of your insurance coverage. Weddings, retirement parties, film festivals, conventions, and many other types of events are common in Canada. These events have various costs, but insurance should protect the people attending. Ask your insurance broker or company for more details before you purchase insurance coverage.

Date, location, and duration of the event

The date, location, and duration of your event will alter your insurance rates. Let us give you an example. If you are having an event near a major body of water or at an outdoor venue during a wildfire or hurricane season, event liability insurance will cost more.

On the other hand, if your event takes place in the winter, ice and snow can increase the risk of your event. However, if your event is happening at a private venue, you won’t have to pay as much for insurance. Additionally, shorter events cost less to insure than their larger counterparts.

Number of people attending

If more guests are attending your event, the costs of event liability insurance will be higher. Before you make your purchase, you have to let the insurance company know how many people will be present at the event. These are generally divided into tiers with ranges including 1-250 guests, 250-500 guests, 500-1,000 guests, 100-1,500 guests, 1,500-2,000, and 2,000+ guests. Insurance rates will increase when many guests are invited to the venue.

If alcohol is being served

Serving alcohol at your event will impact your event liability insurance costs. This is because alcohol is another risk factor that insurers consider when deciding what event insurance coverage is required.

Third-party vendors

Third-party vendors are considered the event host’s liability. Caterers, florists, musicians, furniture rentals, and photographers all need to be protected. Otherwise, you risk being sued for third-party property damage. Special event coverage can help you out in that regard.

As a host, it’s your legal liability to protect your guests from bodily injury and property damage. If something happens at your event, you will be held responsible. That’s why having specialty insurance is essential when hosting any type of event. Event venues will not pay for damages caused by you or your guests.

Prepare for your next event by contacting BrokerLink today!

Anything can happen, which is why event insurance is essential. Expecting the unexpected is an effective way to approach an event, whether it’s a multi-day music festival or a quiet retirement party. Always keep liability limits in mind to avoid having to pay a lot of money out of pocket. You can get all the information you need from an insurance broker. An insurance broker can help you with various types of insurance coverage. There are many policies available, including, but not limited to, the following:

• Musical instrument insurance
• High-value home insurance
• Short-term film production insurance
• Wedding insurance

Hosting an event should be fun and safe. After working so hard on the planning, seeing your ideas come to life is a sight to take in. Reach out to your BrokerLink broker to find out how event insurance can help you out today.

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Event Insurance FAQs

How much does event insurance cost?

The cost of event insurance varies greatly depending on the event’s location and size. Call an insurance broker for a quote. It just takes a few minutes to get a quote and insure your event.

What is special event liability insurance?

Special event liability insurance is for occasions such as weddings. If someone is injured and the host is found liable, this type of insurance will protect the host.

Do musicians need public liability insurance?

Depending on the event, musicians should consider liability insurance. If a fan is injured at a concert, the musician could be considered liable. Talk to an insurance broker about your risks and what coverage might make sense for you.

If you have any questions, contact one of our local branches.