Event Planning Insurance Policy Information
Event Planning Insurance. Event, party or wedding planners work with customers to plan and implement special events, including conventions, exhibits, fundraisers, parties, or weddings.
The planner works with the customer, determines the time, place, and budget for the event, and negotiates and coordinates vendor services for such items as mailings, catering, musicians or other entertainers, photography, props, scenery, flowers, audiovisual equipment, and security.
While many event planners handle one-time events such as weddings, others work year-round with businesses conducting trade shows, exhibitions, and conventions.
If you are planning an event, whether it's a conference, wedding, party, consumer show or a corporate dinner, making sure you have appropriate insurance in place can help protect your event from those unforeseen circumstances that could leave your reputation tarnished and your business out of pocket.
With risks such as an injured guest, a closed venue or damaged property, event planning insurance will protect you against the unexpected.
Event planning insurance protects your business from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked event planners insurance questions:
- What Is Event Planning Insurance?
- How Much Does Event Planning Insurance Cost?
- Why Do Event Planners Need Insurance?
- What Type Of Insurance Do Event Planners Need
- What Are Event Planners Risks & Exposures?
- What Does Event Planning Insurance Cover & Pay For?
What Is Event Planning Insurance?
Event planning insurance is a type of insurance coverage that provides protection for event planners, coordinators, and other professionals involved in organizing and executing events. It covers various risks associated with event planning, including property damage, liability claims, injury to attendees, and cancellations.
The insurance coverage can also include protection against loss of income, damage to equipment, and other costs associated with the event. This insurance is designed to protect event planners from financial losses and help ensure that the events they plan run smoothly and successfully.
How Much Does Event Planning Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small event planners ranges from $27 to $39 per month based on location, size, payroll, sales and experience.
Why Do Event Planners Need Insurance?
Below is a list of the most common reasons to purchase event planning insurance:
- Many clients and venues will ask to see details of your insurance policy as part of their standard vendor checks. Your insurance cover certificate will enhance your reputation and show that you are dedicated to your profession.
- As a professional party planner or event organizer, you also need peace of mind that should the unexpected happen you are secure and protected with a event planning insurance policy. Even the best-planned events are at the mercy of the unexpected. If accidents that cause injury or property damage occur during your event, you could be held financially responsible. Your policy can help you take some of the anxiety out of event planning.
- Some policies even offer event cancellation coverage that can minimize your financial loss if your event can't go on due to interruptions like bad weather.
What Type Of Insurance Do Event Planners Need?
Flowing are some of the most important types of event planning insurance:
Commercial General Liability: This will pay for legal defense costs (e.g. lawyer fees, court costs, etc.) and this is very important to note as many lawsuits alleging responsibility for bodily injury, property damage or personal injury are frivolous in nature.
When applying for this coverage, you need to provide details about the event, its date, location, and the number of people expected. If liquor is going to be served, you will pay an additional premium to get liquor liability.
Professional Liability Insurance: Also know as errors and omissions insurance (E&O). If you are a full-time or part-time professional in the events, planning & organization space, expectations can be very high and attention to detail is critical.
Professional liability covers yourself and your employees from actual or alleged negligence, failure to perform, inaccuracy, bad advice and other common risks faced by planning, events and organization professionals.
Business Property Insurance: This will cover you financially if your office and/or its contents were destroyed or damaged by a fire, theft or vandalism. When you purchase your policy, you have the option of insuring your property either at the replacement value or the current cash value.
Business Owner's Policies: Business owners policies (BOPs) offer your event planning business comprehensive coverage at an affordable rate by bundling commercial general liability, business property and business income coverages together together.
Commercial Auto Insurance: If you use a car, truck or van in your event planning business, then commercial vehicle insurance provides you with monetary protection in case of an accident. It not only can cover physical property damage to the vehicles involved in an accident, but it pays medical expenses for physical injuries sustained in the accident.
Equipment Insurance: This will provide peace of mind by covering your own event-related equipment; from chairs, to microphones, to lighting. This product covers your equipment in transit, during use and when in storage.
Business Income and Extra Expenses Insurance: If your business buildings or contents are damaged severely in a catastrophe, you may lose income while waiting for repairs. This insurance can provide that lost income and cover extra expenses that may arise.
Valuable Papers Insurance: In the event customer information such as payment receipts and contracts are stolen or damaged, this insurance coverage will provide the necessary means to replace or reimburse you for the cost of damage.
What Are Event Planners Risks & Exposures?
Premises liability exposure is generally low as visitors to the event planner's premises are few. While the facility owner would be primarily responsible for any injuries to guests on the rented facility premises, the event planner could incur liability for recommending the facility to the customer.
The event planner should require additional insured status and certificates of insurance from all vendors. Contracts must be clear as to all responsibilities.
Workers compensation exposure can be very high if employees set up, build, or transport stage settings, equipment, lighting, and scenery. These activities can result in back injury, hernia, slips and falls, strains, and sprains. Stage and lighting setup may involve above-ground exposures that need additional protection and precautions.
Adequate security and training must be provided if employees handle money at events due to the possibility of holdups. Security personnel may suffer injury not only from theft but also from unruly patrons. The event planner should require additional insured status and certificates of insurance from all vendors. Contracts must be clear as to all responsibilities.
Property exposures are limited on premises to that of an office containing telecommunication equipment, computers, and printers. Ignition sources include electrical equipment, heating, and air conditioning. Electrical wiring must be up to code and be adequate for the occupancy. Off-premises property exposures are higher but are from property of others which should be covered on an inland marine bailees form.
Crime exposure is from both employee dishonesty and money and securities. Background checks should be conducted on all employees handling money. The event planner consolidates vendors' bills and sends one bill to the customer. Employees who are in charge of ordering must not be the same ones who handle disbursements, deposits, and billings.
Frequent inventories and audits must be conducted. If tickets are sold at events, a significant amount of cash may accumulate. There must be adequate security from guards, plus regular deposits.
Inland marine exposures include accounts receivable if the planner offers credit, bailees' customers for property of others at event sites, computers, and valuable papers and records for clients' and vendors' information.
The bailees' exposure can be very high because of the wide variety of equipment that must be rented to provide sound and lighting at events, plus any rented furnishings or display scenery.
Business auto exposure is generally limited to hired non-owned for employees running errands. If company vehicles are supplied for use, all drivers must have a valid driver's license and acceptable MVR. There should be written procedures regarding personal use by employees and their family members. Vehicles must be regularly maintained with documentation kept in a central location.
What Does Event Planning Insurance Cover & Pay For?
Event planners can be sued for a variety of reasons, such as:
Personal injury: Event planners can be sued for accidents or injuries that occur at their events. For example, if a guest slips and falls on a wet floor or is injured by faulty equipment. If a guest is injured at an event and sues the event planner, liability insurance can help pay for the guest's medical expenses, lost wages, and other damages.
Property damage: Event planners can also be sued for damage to property that occurs during the event, such as a fire caused by pyrotechnics. If an event causes damage to property, liability insurance can help pay for the cost of repairs or replacement.
Contract disputes: Event planners can be sued for breach of contract if they fail to deliver the services promised in their contract. If an event planner is sued for breach of contract, liability insurance can help pay for legal fees and any damages awarded to the plaintiff.
Negligent hiring: Event planners can be sued if they hire vendors or contractors who are not qualified or who cause harm to guests or property. If an event planner is sued for negligent hiring, liability insurance can help pay for legal fees and any damages awarded to the plaintiff.
Insurance can help protect event planners from these risks by providing liability coverage. It's important for event planners to carefully review their insurance policies to ensure they have adequate coverage for the risks associated with their events. They should also work with an insurance broker or agent who understands their business and can help them find the right coverage at an affordable price.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8748 Business Consulting Services, Not Elsewhere Classified
- NAICS CODE: 812990 All Other Planning Services, 561920 Convention and Trade Show Organizers
- Suggested Workers Compensation Code(s): 8742 Salespersons or Collectors - Outside
8748: Business Consulting Services, Not Elsewhere Classified
Division I: Services | Major Group 87: Engineering, Accounting, Research, Management, And Related Services | Industry Group 874: Management And Public Relations Services
8748 Business Consulting Services, Not Elsewhere Classified: Establishments primarily engaged in furnishing business consulting services, not elsewhere classified, on a contract or fee basis.
- Agricultural consulting
- City planners, except professional engineering
- Economic consulting
- Educational consulting, except management
- Industrial development planning service, commercial
- Radio consultants
- Systems engineering consulting, except professional engineering or
- Test development and evaluation service, educational or personnel
- Testing services, educational or personnel
- Traffic consultants
Event Planning Insurance - The Bottom Line
There are countless details to manage when you stage a trade show, convention, concert, party or gala event - and many risks to manage. To complicate matters, most venues impose insurance requirements on event organizers. Having event planning insurance will help you to meet those requirements, while minimizing various losses.
Additional Resources For Arts & Recreation Insurance
Read up on small business arts and recreation commercial insurance.
- Amusement Parks
- Archery Ranges
- Athletic Fields
- Billiard And Pool Halls
- Bowling Alleys
- Cave Tours
- Dance Studio
- Disc Jockey DJ
- Drive-In Theaters
- Entertainers And Performers
- Event Planning
- Fairs And Fairgrounds
- Film Production
- Fine Art
- Guides & Outfitters
- Handball & Racquetball Courts
- Horse & Dog Racetracks
- Indoor Sports Complexes
- Interior Decorator
- Interior Design
- Motorsports Racetracks
- Photo Booth
- Recording Studio
- Recreation Centers
- Riding Stables
- Roller Sakting Rinks
- Shooting Ranges
- Skeet & Trap Shooting Ranges
- Ski Resorts
- Talent Agency
- Tennis Centers
- Video Arcades
- Wedding And Special Event
- Specialty Arts And Antiques
- Specialty Clubs And Leisure Time Activities
- Specialty Entertainment
The arts and recreation industry is a vital part of our society and culture, providing entertainment and enjoyment for people of all ages. However, as with any business, there are inherent risks and potential liabilities that can arise. This is where insurance comes into play.
One of the main reasons the arts and recreation industry needs insurance is to protect against financial losses due to accidents or injuries. For example, if a performer is injured while rehearsing or performing, their medical bills and lost wages could be significant. Without insurance, the cost of these expenses could potentially bankrupt a small arts organization.
In addition to protecting against accidents and injuries, business insurance can also cover damages or losses due to weather events, natural disasters, and other unexpected circumstances. For example, if a theater is forced to cancel a performance due to a power outage or extreme weather, insurance can help cover lost income and expenses.
Another important aspect of commercial insurance for the arts and recreation industry is liability coverage. This type of insurance can protect against legal claims and lawsuits if someone is injured or becomes ill while attending an event or using facilities. For example, if a patron slips and falls at a theater, they may file a lawsuit against the venue for damages. Liability insurance can help cover the costs of legal fees and any settlement or judgement.
Overall, the arts and recreation industry needs insurance to protect against financial losses and legal liabilities that can arise in the course of business. Without commercial insurance, small arts organizations and recreational facilities could be vulnerable to financial ruin in the face of unexpected events or accidents.
Minimum recommended small business insurance coverage: Business Income with Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Commercial Articles Floater, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Bailees Customers Floater, Money and Securities, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.