If you’ve ever organized any type of event, you know that even the most careful planning can’t guarantee that everything will go as envisioned.

Many venues require organizers and vendors to furnish a certificate of insurance (COI).

That’s where special event insurance comes in.

In this article, we’ll cover what special insurance is and what small business owners should know.

What Is Special Event Insurance?

Special events have a lot of moving parts, and with complexity comes uncertainty. Special event insurance is designed to protect venues and organizers from unexpected liabilities and losses – either if something goes wrong during an event or if the event gets canceled.

Unlike general liability, professional liability, and workers’ compensation coverage, special event insurance is usually specific to a single event or series of events. Many venues require that organizers and vendors furnish a certificate of insurance (COI) proving they have a minimum level of coverage – commonly $1 million or more per occurrence. They may also require that the venue be listed in the policy as an “additional insured.”

Even when it’s not mandatory, a dedicated insurance policy can be a wise investment for any business that’s involved in hosting or producing live events.

What Kinds of Events Can Be Covered?

Special event insurance can cover a wide range of public and private gatherings and functions, like:

• Sales events
• Trade shows and conferences
• Company retreats
• Fundraisers
• Awards ceremonies

What Kinds of Events May Not Be Coverable?

Certain more unusual or higher-risk events may not qualify for insurance or may only be insurable by specialty policies or agencies. Here are a few common examples:

• Extreme sporting events
• Animal shows
• Fireworks displays
• Gun shows
• Obstacle courses

What Kinds of Risks Can Be Covered?

Special event insurance comes in many forms and can often be customized to fit the risk profile of the event and the risk tolerance of the insured. Coverage options may include:

• Premises protection
• Personal injury
• Equipment damage or theft
• Event cancellation
• Liquor liability

How Much Does It Cost?

Like other types of business insurance, special event insurance premiums depend on several variables, such as:

• The event type, location, and duration
• The expected number of attendees
• The amount and extent of the coverage
• Whether any complementary insurance coverage is in place
• Whether it’s a standalone policy or a rider on an existing policy

What Kinds of Businesses Should Consider It?

Securing tailored special event insurance coverage can be a strategic move for a wide variety of small businesses, organizations, and solo entrepreneurs, including:

• Live entertainers
• Caterers and food vendors
• Photographers and videographers
• Nonprofits and social clubs
• Firms that host celebrations or seminars

Picking the Right Policy

There are almost as many different types of event insurance as there are types of events, so explore all your options and choose wisely.

Consider the particular risks posed by the event in question and your ability to withstand losses or claims that could arise. Ask prospective insurers about coverage exclusions and limitations, deductibles, and the claims process. You should also find out how soon before the date of the event you should purchase the policy and whether the date(s) can be extended if the event is postponed. Shop around for competitive rates and seek out online reviews and personal recommendations from other event professionals.

Finally, be sure to periodically review and adjust your coverage options as your needs and capacities evolve.

Ensuring Your Continued Success

For personalized guidance on optimizing your business’s risk mitigation practices, consult your financial institution.

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