While your HOA may not be in the business of event planning and management, there are times when special events may occur on property and, when they do, it’s important to make sure your bases are covered in terms of insurance.
Special Event Insurance will protect you during a specific event, and may even cover costs if you are responsible for property damage or any injuries caused during the event, or if you are forced to unexpectedly cancel the event. This coverage is needed for functions such as:
- Religious celebrations
- Weddings
- Anniversary or birthday parties
- Baby showers
- Community association events
- Certain business functions (e.g., fundraisers or private corporate parties)
Public events, such as dance recitals or sporting events, and bachelor/bachelorette parties are not typically covered.
Event cancellation coverage will reimburse you for any lost deposits or fees in the event of an unexpected forced delay or cancellation of your event. Note: This coverage does not apply to any voluntary delays or cancellations.
Why is Special Event Insurance Necessary?
Event Liability Coverage will protect you if you are found responsible for property damage or injuries cause during the covered event. For example, Special Event Insurance will come in handy if the band damages the floor or the wall of the venue with their gear, if the guests damage equipment, or if a staff member gets injured during your event. It may also cover accidents that happen to rental cars or personal vehicles that are damaged hauling food or supplies to the event; this may even include fender-benders that occur in the parking lot.
If you are planning to serve alcohol at the event, it is wise to include a Liquor Liability Endorsement to the policy to cover any alcohol-related incidents which may occur. Each policy is different, so be sure that you are well-acquainted with your particular policy to ensure that you know what is or is not covered.
Risky Business
If you do not have One-Day or Special Event Insurance, or if you own a venue (i.e., a community clubhouse) and do not require your patrons to purchase their own Special Event Insurance, you are taking a costly gamble!
Building damage, car accidents, cancellation fees, or … heaven forbid! …hospital bills or lawsuits resulting from personal injury during your event, can add up to a substantial amount of money that you could end up being responsible for. One-Day or Special Event Insurance can give you peace of mind while planning and executing an event.
Of course, you may already have some coverage through home, auto, or liability insurance, as well as coverage through your credit cards. This is likely not enough! Your venue may require you to have Special Event Insurance, so be sure to check all paperwork in your contract. Note that there are usually restrictions on when you can purchase coverage (typically no later than two weeks prior to the event).
Don’t risk it! Contact Blue Lime Insurance Group today to explore your insurance options.
