What is event liability insurance?
No matter how much planning you do or how hard you work to pull off the perfect event, sometimes there are circumstances beyond your control. That’s where event liability insurance comes in. This type of specialty insurance covers an event host’s liability in case of accidents, injuries, property damage, or other financial losses. Whether your event venue requires event liability insurance or not, it’s always a wise choice owing to the coverage it offers. From job fairs and family reunions to weddings, conventions, meetings, and charity events, event liability insurance is applicable to a wide range of events.
How event liability insurance covers you
The average cost of a wedding and honeymoon in Canada is $30,000. This is a major investment. That’s why BrokerLink recommends that Canadian couples purchase wedding insurance before the big day. Wedding insurance policies protect couples, no matter what happens on or before their wedding day. From a lost deposit to vendor cancellation, you can find a list of ways that wedding insurance protects you below.
Event liability coverage protects the host against property damage and bodily injury
Should a lawsuit be brought against you for bodily injury or property damage, event liability insurance can help. This type of insurance typically covers the policyholder between $1,000,000 and $5,000,000. In essence, if someone is injured or the venue’s property is damaged at your event, event liability insurance will protect you by preventing you from being held liable up to your coverage amount.
Failure to purchase event liability insurance
Failing to purchase event liability insurance can have serious consequences. Given all that it covers, forgetting to purchase it exposes you and your company to a potential lawsuit should something go wrong. This could not only lead to significant financial losses but could also tarnish your reputation. Therefore, the wisest decision any Canadian event host can make is to purchase event liability insurance.
Types of event insurance
While dependent on the event, here are four event insurance coverages one of our insurance brokers may suggest:
General commercial and third-party liability
Most venues rented for an event will require a specific amount of liability coverage; this can often be secured through commercial and/or third party liability coverage. This coverage will protect the organization and venue hosting an event from instances where a guest is injured.
Liquor liability
This coverage will protect an organization from loss that results from serving alcohol at an event. Liquor liability is typically available in the following forms:
Liquor license act liability
This is related to risks where the event host could be found liable for damages, even if their conduct isn’t negligent.
Host liquor liability
This applies for events where alcohol is being served but not sold – such as a staff party.
Non-owned vehicles and equipment
If the event is at a banquet hall with cooking equipment or volunteers are using personal vehicles as part of the event, a broker may recommend this coverage. Non-owned vehicle and equipment coverage will add protection for the organization for liability when it concerns the use of vehicles or equipment on behalf of the organization.
Cancellation
Events are often cancelled or need to be rescheduled. The right event insurance coverage can protect organizers from cancellation fees or non-refundable deposits.
Factors that impact the cost of event liability insurance
A number of factors will determine how much your event liability insurance costs. From the date and location of your event to the number of guests and liability limits, check out this list of details that will impact how much your event liability insurance policy costs:
The date, location, and length
The date, location, and the expected length of your event can all affect how much your insurance costs. For example, if your event is taking place near a major body of water or at an outdoor venue during wildfire or hurricane season, your event liability insurance will likely cost more. Alternatively, if your event is happening in the winter, there is an increased risk due to the ice and snow, thereby raising the cost of your insurance. Beyond the season and city, if your event is taking place at a private venue as opposed to a public one, you may pay less for insurance. Finally, the length of the event also comes into play. A three-day music festival will cost more to insure than a 5-hour retirement party or 9-5 meeting.
The number of guests in attendance
The number of people attending your event is another factor that influences the cost of event liability insurance. When purchasing event liability insurance, you will need to provide your estimated guest count. Event insurance is typically separated into tiers, such as 1-250 guests, 250-500 guests, 500-1,000 guests, 100-1,500 guests, 1,500-2,000 guests, and 2,000 guests +. As you might expect, the higher the guest count, the pricier the event liability insurance.
The type of event
The type of event you're hosting can also dictate the cost of event liability insurance. Common types of events in Canada include weddings, retirement parties, speaking engagements, sporting events and tournaments, festivals, recitals, conventions, award presentations, lectures, workshops, meetings, charity or non-profit events, bachelor/bachelorette parties, and kid-friendly parties or events.
Liability limits
Venues often have liability insurance requirements. This means that as the host, you will need to ensure that your event liability insurance complies with the requirements set by the venue. On average, venues in Canada require a minimum of $1,000,000 in liability insurance.
Third party vendors
If your event involves any third party vendors, such as caterers, florists, musicians, furniture rentals, or photographers, this could affect the cost of your event liability insurance policy.
Whether alcohol is being served
If alcohol is served at your event, you should be prepared to pay more for event liability insurance owing to the increased risk that comes with it.
The right event liability insurance for you
Are you after the perfect liability insurance policy for your upcoming event? You’ve come to the right place. BrokerLink has been helping Canadians find insurance policies for years. From auto insurance and business insurance to home insurance and wedding insurance, we will ensure you find a policy that’s right for you - and this extends to event liability insurance. Whether you’re hosting a three-day wedding, overnight music festival, or corporate convention, the BrokerLink team will work tirelessly until you find an event liability insurance that suits your needs.
Get your event liability insurance now!
As you can see, many factors will determine the cost of your event liability insurance policy. At BrokerLink, we make it easy to get the coverage you need.
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FAQs about event liability insurance
Do I need event liability insurance? Is event liability insurance worthwhile?
In some cases, event venues require hosts to purchase event liability insurance. Whether you’re a couple hosting their wedding or a corporate event planner hosting your company’s annual convention, you will need to purchase event liability insurance if your chosen venue mandates it. However, even if your venue does not require it, there are so many benefits that come with event liability insurance. One of the main benefits is the peace of mind it offers. Without it, you open yourself up to all kinds of risks. Bodily injury, property damage, and your personal (or your company’s) reputation are just a few of these risks. But with a quality event liability insurance policy in your back pocket, you can sit back and relax knowing that whatever happens at your event, you’re protected.
How does event liability cover me?
Event liability insurance protects the event host against bodily injury or property damage. So if you're hosting a music festival and someone injures themselves in the crowd or damages the stage, you will be covered thanks to event liability insurance. Event liability insurance typically covers between $1,000,000 and $5,000,000. Generally speaking, this type of event insurance protects the host from all kinds of risks that come with hosting events, such as injury, reputation, and finances.
When is a good time to buy event liability insurance?
Once you’ve committed to hosting an event, we recommend purchasing event liability insurance as soon as possible. This will ensure you’re protected no matter what comes your way, from the day you start planning right up until the day of the event.
How much does event liability insurance cost?
This question is difficult to answer as so many factors go into calculating the cost of event liability insurance. The number of guests in attendance, the date, length, and location of your event, whether you plan on serving alcohol, the type of event you're hosting, and the venue’s liability limits will all influence the price. Therefore, the best way to find out how much event liability insurance will cost you is to obtain a free quote from your insurance broker.
If you have any questions, contact one of our local branches.
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