Does My Business Need Special Event Insurance?

If you’re currently planning your company’s next large gathering or event for either employees or customers, then you know how many moving parts there are to worry about. Everything from parades, fundraisers, launch parties, and more can be an exciting yet hectic time for any business - making it important for you to safeguard your investment. 

Whether open to the public or only company wide, holding large events as a business comes with a certain level of risk. Risks that hosts can be held responsible for if they are without the proper insurance coverage when accidents or damages occur. Thankfully, insurance policies exist to specifically provide additional coverage for your next event. 

At Berry Insurance, we know that you want nothing more than to have your company's next event go off without a hitch, making it important for you to have the best protection possible. So, let’s break down everything you should know about special event insurance coverage, including what it covers and how much you can expect to pay for coverage. 

What is special event insurance? 

Special event insurance coverage is additional insurance designed to protect your next large event or gathering from the risks and liabilities associated with hosting events. 

Covered events for a business can include: 

• Town fairs
• Launch parties/grand opening ceremonies
• Road races
• Parades
• Company dinners or conferences 
• Fundraisers 
• School events 

These events (and many others) are perfect examples of situations where your business may need additional coverage to protect yourself in the event of any emergencies or accidents. 

Special event insurance offers coverage for financial losses due to a number of damages or losses that could risk ruining your event. Being highly customizable, event insurance policies can be tailored to fit the requirements of your next event - letting you choose the right level of coverage for your business. 

Is special event insurance required for my business event? 

Whether or not your business requires special event insurance will depend on various factors, including the nature and size of the event, venue requirements, and local regulations. While there is typically no universal legal requirement mandating special event insurance for businesses, there are several scenarios where it would be strongly recommended, including: 

1. Venue requirements: Many venues will require businesses to carry special event insurance when looking to book the space. Venues may also request proof of insurance coverage to protect against any potential damages or accidents that could occur during the event. 
2. Serving alcohol: If you are planning to serve alcohol at your event, it would be a good idea to obtain additional coverage for liquor liability protection. In addition to hiring professionally trained bartenders with alcohol awareness training, having additional liquor liability protection can help protect a business if an intoxicated guest causes any damages or injuries during or after the event. 
3. Mitigating potential financial risks: Having special event insurance helps businesses protect themselves from potential financial risks associated with hosting events. Special event insurance offers additional coverage for liabilities, property damage, event cancellation, or other unexpected incidents - helping to reduce potential financial burden on the business. If you know the event your business is planning has dangerous or activities or associated risks, having special event insurance may be the best option to safeguard your investment. 

While not always required for every event, having special event insurance can be a cost effective way to provide additional coverage for your businesses' next large gathering. 

What does special event insurance cover? 

Special event insurance policies can be easily customized to fit the needs of the event your business is planning. 

For example, at Berry insurance, we tend to write our commercial clients, including business owners and towns or municipalities, with USLI when they want to insure their next event or large gathering. USLI (United States Insurance Group) offers coverage designed to protect hosts for a wide variety of events, including everything from fundraisers, fairs, and individual vendor booths. 

USLI’s coverage often includes two important components for businesses: commercial general liability and liquor liability protections. 

1. Commercial general liability protection

Commercial general liability coverage is designed to protect your business from any claims for bodily injury or property damage by third parties related to your event. USLI’s commercial general liability protection typically includes the following: 

• Bodily injury coverage: This component covers medical expenses, legal costs, and potential damages resulting from bodily injuries sustained by guests at the event. So, if a guest slips and falls at the venue and suffers an injury. This coverage helps to protect you from potential legal and financial liabilities.  
• Property damage coverage: Property damage coverage protects you if there are any damages made to the property or venue by guests. 

2. Liquor liability protection

Liquor liability protection is specifically designed to address the potential risks associated with events where alcohol is being served. USLI’s liquor liability coverage includes the following: 

• Liquor-related claims: This coverage protects you from claims arising from injuries or damages caused by guests who consumed alcohol at the event. So, if one of your guests becomes intoxicated and causes an accident during or after the event, this coverage would help to cover you from any potential legal or financial repercussions. 
• Defense costs: liquor liability coverage may also provide options for defense costs, covering legal expenses if your business faces any lawsuits for alcohol-related incidents.

Check out USLI’s special event insurance application here for more information on their offered coverage: USLI The Main Event. While USLI’s customizable policy can be a good fit for most events, depending on the nature of your business’s event, planned activities, and level of risk - we may suggest other similar coverage offered through surplus lines or other carriers. 

Speak with your own agent or carrier today to discuss what you’re looking for out of your event insurance coverage to help determine the best policy and options for your business. 

How much will special event insurance for my business cost? 

The price your business can expect to pay for event coverage will vary depending on numerous factors of your event. These can include: 

• Size of the event
• Number of attendees
• The location/venue
• Duration of the event
• Planned activities 
• Required add-ons or endorsements

As each event will be unique, the factors above help companies to determine the premium when designing a business’s event policy. Typically these policies can range anywhere from a few hundred to several thousands of dollars, depending on the size of an event or your businesses desired level of protection. As larger scale or public events will have more associated risks, you can expect to pay more than smaller-scale or internal events. 

Staying safe during the celebration 

Holding any number of events can be a great way for businesses to give back to their community, promote their business, or celebrate employees. This makes it important for your business to be properly covered before the festivities start. 

Now that you have a better idea of what special event insurance offers and if your business requires the additional coverage, you can stay better prepared when organizing your company's next event. Think special event insurance is right for your business? Head on over to our quoting page to get a personalized quote for your upcoming event.