Event Planning Insurance

Now that we are in November, it is goodbye Jack-O-Lanterns, and hello Jack Frost! At this time of year, many companies are beginning to plan their holiday parties. Hosting a company holiday party is generally a way for employers to thank their employees for another year of hard work and dedication. The last few years have required large events to either be modified or hosted virtually in response to COVID-19 restrictions. It is encouraging to hear that most businesses plan to host an in-person event this season. But with that decision comes risk. In this article, we are unwrapping some common holiday party-related insurance claims. Stay off your insurance company’s naughty list’ by learning how to mitigate your risk.

What is event planning insurance?

Event planning insurance is a distinct type of policy that helps protect a specific occasion. It is designed to help cover your costs if you unexpectedly need to cancel your event or provide liability coverage. This includes if you’re found responsible for property damage or bodily harm occurring at the event.

Factors included in the policy

There are several involved in how your event insurance is calculated.

1) Location

Depending on if your event is hosted in a public setting or in a private venue will impact your rate. If the party is taking place at a public venue, some establishments require proof of liability insurance before allowing you to rent the space.

2) Number of Guests

The greater the number of people in attendance, the increased liability for the host.

3) Is liquor being served?

Your special event insurance rate will depend on whether liquor is being served. Optional liquor liability insurance covers injuries resulting from a guest being served to intoxication.

What are the risks involved in hosting a holiday party?

The two main claims involved in special events are liability and cancellations.

Liability is one of the biggest risks and one of the most important reasons to buy special event insurance. The most common involve drinking/smoking and driving. Even if your holiday party is hosted at your own home, you are legally responsible for the well-being of your patrons. Some ways to mitigate this risk is to offer Uber vouchers, hire a party bus, or host the party at a venue or restaurant, where the onus of responsibility shifts to the venue that will have liability coverage already in place.

Cancellations are another popular claim for large events such as a holiday party. Some factors are outside your control such as bad weather, family emergencies, or COVID-19 protocols. Unforeseen circumstances can leave you on the hook financially in the event you need to cancel.

If you are planning your office holiday party, it is important to speak with your Merit broker in advance to ensure you have the proper insurance coverage required. Without special event insurance, claims or suits brought by injured attendees can be costly and otherwise would have to be paid out of pocket. Your broker will be able to assist you in selecting the appropriate coverage for your special holiday event.

Meet with your Merit Insurance Broker to discuss or click here to get a quote.