Event Insurance: What It Is & When You Need It

Event insurance, also called special event insurance or event liability insurance, is a type of policy you can purchase to protect yourself from liability claims caused by an event you host, the guests who attend it, and/or the costs associated with canceling unexpectedly.

There are two primary types of event insurance: event liability coverage and event cancellation coverage. In this blog post, our insurance experts explain what each coverage type includes, what kinds of events aren’t covered, and when you should purchase a policy.

Types of Special Event Insurance

In many cases, event liability and cancellation insurance are sold separately, but some insurers may require you to purchase both types of coverage.

Here’s a breakdown of what each type of policy does and doesn’t cover:

Event Liability Coverage

In general, an event liability policy can help shield you from costs incurred if you’re found responsible for property damage or injury that occurs during your event.

For example: The band you hire for your wedding accidentally damages the wall of your venue while carrying in a drum set. With event liability coverage, your policy pays the cost to repair it.

Because of the risk of property damage, many event venues require you to carry event liability coverage to rent their space. However, some venues have their own policy. Even if your venue has their own liability coverage, it’s a good idea to review it to assess whether there are any gaps.

Event liability insurance also covers medical costs incurred if someone at your event gets injured. For instance, if a waiter trips and falls due to electrical cords or decorations on the floor, a liability policy may protect you from the cost of their hospital visit.

Depending on whether your event involves alcohol, you can also buy event liability insurance with or without liquor liability coverage. This would cover alcohol-related injuries or property damage.

It’s important to note that event liability coverage likely won’t pay for damage to equipment you rent from a third-party company, as it specifically covers property owned and provided by your event venue.

Event Cancellation Coverage

Cancellation coverage protects you from the costs associated with canceling or rescheduling a wedding, party, funeral service, or other large event. It specifically covers unexpected cancellations, which are due to unforeseen circumstances such as severe weather, illness, or injury.

Event cancellation coverage can reimburse you for lost deposits and other fees, up to the coverage limit defined in your policy details. So, if a bride, groom, or important member of the wedding party gets sick or is injured ahead of (or on) the big day, you can reschedule the wedding without losing out on your deposits.

It’s important to note that event cancellation coverage won’t cover an event that gets canceled because of cold feet or a change of heart about the venue. This type of coverage specifically protects you from catalysts outside your control.

Other Types of Event Coverage

In addition to event liability and cancellation policies, you can also purchase coverage for other items important to the event and situations that may arise to threaten it, including:

• Wedding attire coverage to protect dresses, tuxedos, and bridesmaid or groomsman attire
• Jewelry insurance for wedding and engagement rings
• Travel insurance for your honeymoon
• Coverage for gifts, photos, videos, and other special mementos
• Coverage for professional counseling as a result of distress caused by the event cancellation

What Types of Events Can Be Insured?

You can purchase event insurance, including liability coverage and cancellation coverage, for a variety of event types, including but not limited to:

• Weddings
• Anniversary parties
• Baby showers
• Birthday parties
• Quinceañeras
• Religious celebrations
• Funeral services
• Family reunions
• Retirement parties

However, certain types of events cannot be covered by event insurance. Exclusions include:

• Political or activist events
• Motorized sporting events
• Aircraft or boating events
• Haunted houses

When Should You Purchase Event Insurance?

We recommend that you purchase event insurance as soon as you start making deposits or purchases for your event. Usually, you must purchase a special event policy no later than two weeks before your event but no sooner than two years prior.

When you make deposits and purchases for your event, hold on to your receipts and document your expenses. Documentation is crucial in case you need to file a claim after your event.

Before purchasing an event insurance policy, find out what coverage you already have through your home, auto, and umbrella liability insurance policies. In addition, ask your venue and vendors if they have their own liability insurance. Then, consult an insurance agent to understand where the gaps in your coverage are and how special event insurance can keep you protected.

Special Event Insurance in New England

Ready to purchase event insurance for your big day? Speak with an agent at C&S Insurance today. Our local Massachusetts agency specializes in personal and commercial lines, and we’re ready to meet all your insurance needs.