Special event insurance

Nonprofits depend on fundraisers such as walkathons, bake sales, dinners, and galas. However, these events can be a huge liability. A polar plunge participant could develop hypothermia and file a lawsuit, or a nonprofit might have to pay cancellation fees when bad weather cancels a walkathon.

Special event insurance gives you peace of mind by making sure you won’t lose money due to a mishap or canceled event.

Tech companies and startups are known for offering their employees perks, including everything from golf outings to cooking demos. However, these outings come with additional risks.

Special event insurance can cover costs if an employee breaks a leg during a golf tournament and sues your company, or if someone's personal stereo system gets damaged at a beach picnic.

Photographers and videographers who cover the occasional wedding or other event may want to invest in special event insurance.

For example, one-day wedding insurance could protect your photography business if someone trips over your equipment and suffers an injury, or if your camera gets damaged at a friend's big day. A venue may also specify that you need to carry this coverage.

However, professionals who face these risks as part of their everyday work should invest in general liability insurance and inland marine insurance to protect against customer accidents and damaged equipment.

Caterers, food trucks, food vendors, and others who sell or serve food may need special event insurance to work at a certain venue, or for a specific client.

For example, a restaurant might cater a few wedding receptions each year in addition to its everyday business operations. Special event insurance would cover the restaurant's liability for any accidents, such as a hot plate that overheats and starts a fire.

If you own a small business or organization that needs special event insurance, you can add it to a general liability policy, also called public liability insurance, as an endorsement.

To get a quote for general liability insurance today, fill out Insureon’s free online application. An insurance agent can help you add event insurance, along with any other types of coverage you might need.

Here are a few terms to know when you purchase special event insurance, if you're concerned about a possible cancellation:

Rainout option. Your special event coverage likely includes a rainout option – but you can't use it to cancel an event. It only lets you postpone your event, and even then, the event must be postponed prior to the event date.

Fully earned premium. Special event insurance is a fully earned (nonrefundable) premium. Your insurance company considers the entire premium earned the moment the policy is put in place. That means you won't get a refund for your premium if the event is cancelled.

Cancellation coverage. When it’s available, event cancellation coverage is usually extra. And even then, many insurance companies offer it only for personal events, like baby showers and birthday parties. Check with an agent if you're interested in adding this coverage.

Special event insurance usually excludes communicable disease coverage. However, some policies will cover a lost deposit or event postponement regardless of the reason behind it.

Find out more about special event coverage and the coronavirus.