What is event liability insurance?

Event liability insurance coverage is usually available for private events, such as:

• Weddings
• Anniversary parties
• Baby showers
• Birthday parties
• Housewarmings
• Retirement parties

Event liability coverage is typically valid for the day of the event, but you may want to consider putting a policy in place at least a day prior to the event. This can account for equipment setup and other event preparations.

While many common types of events are eligible for event liability coverage, Forbes recommends that you check with your insurer to make sure your event qualifies for coverage. Certain types of events may be excluded. Things like:

• Motor sporting events
• Haunted houses
• Aircraft and boating events
• Activist events like protests and rallies

Even if your event qualifies for coverage, there are certain circumstances that won’t be covered. For instance, say you’ve made a deposit on a wedding venue, but you choose not to go through with the wedding. Your policy likely won’t cover the loss of your deposit.

Before you buy your policy, review the documents closely to educate yourself on what’s covered and, equally as important, what’s not covered.

When determining whether event liability insurance is right for you, you'll likely want to consider several factors. Some venues that host private events, such as banquet halls, restaurants and bowling alleys, may require you to have event liability coverage.

Many venues have their own liability insurance, explains the Insurance Information Institute (III). So be sure to check with your venue, as well as your vendors, to see what types of situations may and may not be covered by their insurance. This can help you determine whether your own event liability policy may help fill any gaps in coverage.

If an event will be held at your home, review your current liability coverage on your homeowners policy to see what it includes. The III states that you may want to purchase special event coverage beyond what your homeowners policy includes.

While you may wonder what could possibly go wrong during a baby shower in your backyard, consider this. Your cousin is carrying a plate of food across your deck, trips on a broken step, and breaks her ankle. If you’re found legally responsible for the injury, you could have to pay for her hospital visit and ensuing physical therapy.

Accidents can happen, even at home. And if they happen at your home and you’re found responsible for the resulting medical bills, event liability coverage may help cover the costs.

The cost of event liability insurance depends on the details of your event as well as the coverage limits you select. Your insurance provider can help you select the amount of coverage that is appropriate for your specific event.

Once you settle on an event liability insurance policy, your insurer will provide you with a COI. This is an important document, as it provides proof that you’re insured. Your venue or vendors may require this documentation to finalize contracts, so you’ll want to keep it on hand while planning your event. Your insurer may be able to provide your COI immediately upon purchase, just as many insurers do with auto or home insurance cards.

It's important to keep in mind that, while event liability insurance may help cover equipment you rent through your venue, it typically will not pay for damage to items you've rented from another company or for equipment from another vendor, such as the photographer, provides. For example, if a guest knocks over one of the band's speakers, your event policy likely will not pay to repair it. Remember to ask your vendors if they have their own liability insurance.

In addition to checking with vendors, the venue and your own homeowners policy about applicable liability coverage, the III notes that you may have some coverage through credit cards or warranties. Be sure to contact credit card companies and review any existing warranties to see if they provide liability coverage. If you have any questions about what may or may not be included in a separate event insurance policy, be sure to talk to your insurance provider.

While getting event liability insurance should be relatively quick and painless, there are a few steps you can take to ensure the process goes smoothly.

1. Plan ahead
You may need your COI before you can finalize your event plans. Plus, your insurer may even require that your event be more than 2 weeks out, says Forbes. So as soon as you nail down your date, add event liability insurance to your to-do list.

2. Gather your event details
The cost of your event liability policy will depend heavily on the specifics of your event. Before you buy your policy, you’ll need to know how many people you expect to attend your event, the date and duration, location, if it’ll be inside or outside, whether you’re serving alcohol, and any other risks involved. Once you have these details, you’ll be ready to get a quote.

3. Shop around
If you currently have other liability insurance policies like auto or home, start there. Get a quote from your current insurer and ask if you’d qualify for a discount as an existing policyholder. But don’t stop there; get at least three quotes from various insurers to be sure you’re getting most reliable coverage at the best price. If you’re considering an insurer you haven’t heard of before, check their rating with the Better Business Bureau.

Hopefully your event goes exactly as planned, but event liability insurance may help protect you should something unfortunate detract from your celebration.