Special Event Insurance: Do You Need It?

While it’s probably not a part of organizing an event you want to think about, planning for the worst is vital for minimizing the financial impact of an accident or other unforeseen events to your business or organization. While most businesses and organizations carry a general liability policy, special event insurance is an add-on that can help protect your company in case of an unforeseen accident at your fundraiser, gala, concert, or other types of events.

Reasons to Get Special Event Insurance

General liability insurance may not cover the unique factors involved with special events. For nonprofits and other organizations, this can make them vulnerable. Heather Brown of The Nonprofit Insurance Program, an organization that helps nonprofits obtain insurance, warns, “Typically, these policies [gen liability insurance] only provide coverage and protection for normal daily operations.”

If you’re hosting an event where alcohol will be offered, your organization can be held liable for accidents that happen as a result of underage drinking or drinking to excess, which can lead to accidents. You can get special event insurance that specifically covers serving alcohol at the event.

What will you do if your star has to go in for surgery and can’t make your event? Cancellation insurance can help stem the losses.

Unfortunately, accidents happen. Gale-force winds may suddenly come up at your fun run fundraiser, causing a structure to collapse, possibly injuring participants. Special event insurance will help if any claims are filed against your organization for bodily injury or property damage.

If you’re renting from a venue, it may require it; make sure you read the contract carefully.

Where To Buy Special Event Insurance

Special event insurance must be obtained before the event and can be purchased from your insurance agent or company. You can also purchase it from a variety of online insurance vendors. You will need to provide information about the event, like what type of venue it is, how many attendees you expect, and if alcohol will be served. If your organization runs several events, multiple event coverage is also available.

How Much Will Special Event Coverage Cost?

The cost of special event coverage will vary by state, the number of participants and guests, type of event, and other factors. Here are just a few examples of some quotes. These are only examples; you should contact your insurance agent or investigate some possibilities on your own for your specific needs.

*Indoor auction, 150 participants, $250

*Fun run, 200 participants: approximately $300

*Outdoor concert, 500 guests, $450

Note: These are estimates provided by online insurance companies. Actual results may differ.

Experts say that special event insurance is vital for any organization that puts on events. When you consider the protection it gives your organization from a bigger financial impact due to circumstances out of your control, talking to your agent about whether this coverage is needed is an essential item on your event-planning to-do list.

There are many details to take care of when planning an event. Let Sparxo help by being your online ticket provider. Using the latest tech to make it easier for you and your guests, Sparxo provides an easy-to-use online platform for selling tickets, managing your event, and staying in touch with your followers. And, unlike other ticketing platforms like Eventbrite or Ticketmaster, we won’t take huge portions of your ticket sales or promote competing events. Plus, Sparxo is committed to giving back – we donate part of our proceeds to nonprofits.

Get started with building your event here.