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Liability Insurance FAQ
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Event Liability Insurance

The need for most insurance is obvious. Car insurance and health insurance are indispensable, and most people agree pet health insurance is handy, but what about event liability insurance? Most people would have difficulty even defining that type of coverage or even figuring out when they should be buying it.

People should consider buying liability insurance for an event whenever they are planning a meeting, celebration, or other gathering at a facility for hire. The most common event for which people should purchase liability coverage is a wedding. Even a simple wedding can become quite expensive, with deposits needing to be put down on ceremony and reception venues and for the rental of equipment like linens and tableware. These things must often be reserved well in advance of the wedding date - making it likely that the bride and groom may decide to marry elsewhere or not marry at all before the date arrives.

Event Liability Insurance - Why Do You Need It?

If this type of thing happens, the person who arranged the rentals and put down the deposits may have to forfeit their money. That is, unless they have purchased event liability insurance, in which case, they would be compensated for the cancellation.

This insurance also works under other circumstances. For instance, if a fight breaks out at a 50th wedding anniversary party at an upscale hotel, and one of the combatants is injured, that person may decide to sue the party’s host. However, this liability insurance protects the host from being held financially responsible with their life’s savings. The insurance covers them instead, providing a high degree of peace of mind.

Event Liability Insurance - Sometimes Required

In some cases, people must purchase event liability insurance when they rent a space at a hotel or other venue. The owners of the space for hire will have a written contract which the renter must agree to and sign. A promise to acquire such liability insurance is generally included in the contract. The contract may also specify terms such as the requirement for purchasing $1 million in liability coverage which names both the renter and the venue as the named insured. This way, both parties are covered in the event of a claim.

Even when a venue does not require such coverage, the person hosting the event should still consider purchasing a policy. They are relatively inexpensive and do not represent a continuing expense, since the policy typically expires once the event is over.