Financial professionals simply define event insurance as a cover that primarily protects a policy holder from uncertain loss during a particular event organized by the insured. The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of premiums to cover an event.
Insurers protect policy holders in certain ways and areas. Firstly, in case of cancellation and abandonment of a certain event, the insurer protects your financial investment. If Also, they offer protection against the legal risks individuals face when hosting an event. This usually falls under employers’ liability and public liability.Employers’ liability covers for legal liability in case of claims against you. Public liability protects the business in the event that a member of the public is injured or if their property is damaged.Thirdly, they offer proper cover for property and venue fixtures and fittings.
This cover is particularly important to event organizers such as wedding planners. This is because they are more likely to suffer from unexpected unfortunate events that may lead to loss. However, even the common fellow should purchase this cover. Not everyone has the opportunity to host prestigious events any other weekend, so it is entirely worth all the premiums paid to cover for that one memorable day.
Event insurance covers can be purchased to cater for a special event or a one day event. The one day insurance cover is quite unique as it only covers the policy holder for a single day only. One day events such as parties and dinners fall under this category. There are some events that last for several days e.g. honeymoons. Such events are usually covered by the special event insurance cover.In general, the longer the event takes place and the more activities the insured plans, the higher the price for insurance will rise. When liquor is served at the events the policy holder may be required to obtain a liquor liability insurance cover. Liquor liability insurance policy covers damages caused by invited guests. It also covers for injuries people get during the event as a result of intoxication.
Note that some vendors often require a waiver of subrogation. This prevents insurance companies from recovering any funds from the vendor in case of a claim raised. The claim might be as a result of the vendor’s negligence.
Basically, Event insuranceprovides general liability for specific events. General liability insurance protects a company and all parties involved in the event any party acquires bodily injuries or suffers as a result of damaged goods. This is popular among most corporates because it has a wide coverage. Though the premiums are a bit hefty compared to the common insurance policies, this cover comes in handy in the event of loss. Policy holders evade a lot of complications that may arise during the hosting of a particular event.
It’s important to know that different insurance companies offer various covers and the content of these policies varies.