What is event liability insurance?
Last updated: December 2021
Event liability insurance may help cover expenses if you are found responsible for property damage or an injury caused during your celebration.
Suppose your DJ damages a doorframe while moving equipment or a guest is injured on the dance floor. Event liability insurance may help pay to repair damage to the venue or cover a guest's medical bills if you are found at fault.
What types of events are covered under event liability insurance?
Event liability insurance coverage is usually available for private events, such as:
- Anniversary parties
- Baby showers
- Birthday parties
- Retirement parties
Event liability coverage is typically valid for the day of the event, but you may want to make sure you have a policy in place at least a day prior to the event.
Do I really need event liability insurance?
When determining whether event liability insurance is right for you, you'll likely want to consider a number of factors. Some venues that host private events, such as banquet halls, restaurants and bowling alleys, may require you to have event liability coverage. According to the Insurance Information Institute (III), many venues have their own liability insurance. 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.
Does my homeowners insurance provide event liability insurance?
If an event will be held at your home, review your homeowners policy's liability coverage 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 happen during a baby shower in your backyard, if your cousin trips on a broken step as she carries a plate of food across your deck, you may be on the hook for the hospital bills for her broken ankle and ensuing physical therapy if you're found legally responsible for the injuries. Accidents can happen, even at home. And if they happen at your home and you are found responsible for the resulting medical bills, event liability coverage may help cover the costs.
How much does event liability insurance cost?
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.
Other considerations for event liability coverage
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 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.
Hopefully your event goes exactly as planned, but event liability insurance may help protect you should something unfortunate detract from your celebration.