Insurance for Event & Party Planners
Though the events you plan look seamless, you know a lot of blood, sweat, and tears went into pulling it off. And for good reason – when things go wrong, client relationships can deteriorate quickly, even with the most skilled event or wedding planner running triage.
That's why savvy planners protect themselves and their business with event planner insurance. Here are some of the most common party planner insurance policies you may need.
General Liability Insurance
You know to watch for injuries at crowded parties – especially when there's alcohol involved. But you might not realize how easily accidents can happen in the relative safety of your office, too. For example, say a client meets at your office to discuss table settings and trips over an electrical cord. Because it happened on your property, they could sue you over their injuries.
If you have General Liability Insurance, it should be able to pay for your client's medical bills. In addition to covering third-party injuries, it can also pay for:
- Third-party property damage.
- Advertising injuries.
This means if you damage a venue's walls and floors while decorating, General Liability can help pay for repairs. If you get into a Twitter flame war with another wedding planner and are sued for libel, your policy can help pay your legal bills.
Even though it covers a lot, General Liability Insurance is pretty affordable. Party planners pay about $650 a year on average for coverage. That's less than $55 a month.
Worth noting: Many venues require you to have General Liability Insurance to even host an event at their location.
Business Owner's Policy
Many planners often purchase a Business Owner's Policy (BOP), which combines General Liability and Commercial Property Insurance in one convenient package. Commercial Property Insurance can cover damage to your office or its contents caused by:
- Frozen pipes.
- Burglary or theft.
If a fire destroys your office or a thief steals your laptop, your BOP policy can help pay to repair or replace the affected items.
Worth noting: If you work from your home, be aware that homeowner's insurance usually doesn't cover business activities or property. You will likely need to purchase a General Liability or BOP policy to get liability and property protection for your business.
Professional Liability Insurance
Professional Liability Insurance, also known as Errors & Omissions Insurance, is perhaps one of the most important policies an event or wedding planner can have. You often plan and organize some momentous occasions in your clients' lives, so when things go wrong, emotions may run high. That's usually a good recipe for a lawsuit.
Professional Liability can help pay for legal expenses when a customer claims you delayed their event, didn't deliver promised services, or just did a bad job.
For example, say you were in charge of booking and paying for the venue and you forgot to mail the check. Because the venue has a long wait list, it just moved on to the next customer. This forced the wedding to be postponed after the couple already sunk thousands of dollars into photography, food, and a DJ – all of which were booked with non-refundable deposits. If the couple sues, your Professional Liability may cover your legal expenses and damages awarded to the couple.
Professional Liability can usually cover frivolous lawsuits, too. For example, say a client sues simply because they didn't like your work. Your policy can help pay for your attorney, who can hopefully get the lawsuit thrown out.
Worth noting: Potential clients may not even hire you without Professional Liability coverage. It assures them you will do your job, and if you don't, they have financial recourse.