Event Insurance – Why Do You Need It, And What Does It Cover?
Event insurance offers you financial protection in case of any unforeseen circumstance where someone gets injured, or there is damage at the venue in the event that you have hosted. The insurance comes with various damage covers, based on which, once you file a claim, your insurer will pay you what has been agreed on the policy.
In this article, you shall learn some of the essential details of event insurance and what is the purpose of it for you. In addition to that, you will also learn the things that event insurance covers and the things that it does not cover. Finally, we shall also discuss the factors that you might need to consider while purchasing event insurance.
What Is Event Insurance, And Why Do You Need It?
According to Investopedia,
“Event insurance protects your investment in an event if you have to cancel or postpone due to reasons covered by the policy. While event insurance is most often associated with weddings, you can purchase coverage for other occasions such as a large 50th wedding anniversary, baby showers, reunions or other special celebrations that are a significant financial undertaking.”
No one needs a memorable event to become one which that person needs to forget soon. We must all be aware of the risks associated with the planning of an event and not forget those factors while we are planning for an event.
There are many liabilities that you might have to carry if someone is hurt at your event or in a situation when a property is damaged. As a matter of fact, forty-three states in the US have enacted laws that put a social host liable for an accident of a guest. Hence, to stay away from such heavy risks, you must purchase an event insurance policy before an event.
Most insurance companies also offer you cancellation coverage in case of wedding events. If you cancel the event, you will get reimbursements for the non-refundable lost deposits as you cancel or postpone. For example, according to Progressive.com,
“If you get wedding cancellation insurance, you may also be able to add on coverage for presents, photos, your wedding dress, tuxedos, and other items.”
What Does Event Insurance Cover?
Event insurance is a popular choice among big events like weddings, meetings, big parties, festivals, etc. What is covered in the event insurance depends on the type of event, the policy, and the insurer. However, the coverage of event insurance includes:
- Liability: Event insurance provides financial protection from liability claims in case someone gets hurt in the event or if there is damage to a property in the venue.
- Gifts and Attire: Most insurance companies provide you with optional coverage for wedding dresses, tuxedos, gifts, and other stuff. These are the things that might get damaged before the event, during the event, or after the event.
- Wedding Cancellation: As already discussed, if you cancel your wedding or postpone it, you will get reimbursement for your lost deposits and also the fees for rescheduling.
- Cancellations due to unexpected death, injury, or illness
- Delays in travel
- Military deployment
- Lost deposit due to bankrupt vendors or the vendor did not show up
- Catastrophic weather situations
- Spoiled food or a damaged wedding cake
- Products or services that failed to reach on time inside the event, such as food, flowers, etc.
What Event Insurance Does Not Cover?
According to Progressive.com,
“If you purchase wedding cancellation insurance, you won’t be covered for getting cold feet. Cancellation coverage is specifically for things outside of your control that force you to cancel your wedding.”
The following are the major situations in which you will not get event insurance coverage:
- Political events and activism in rallies and protests
- Motorized sporting events
- Events containing boating, aircraft, and hot air balloon
- Haunted houses, etc.
One of the most common questions that come for event insurance is whether they cover changes in weather or not. The answer is no. Event insurance coverage is not applicable for damages that occurred due to bad weather. If a situation is outside of your control, only for those reasons you will get coverage with event insurance.
Here, Allstate.com adds –
“Public events, including dance recitals, sporting events, and exhibitions, typically cannot be insured under this coverage, and neither can bachelor/bachelorette parties. Certain business functions, such as fundraisers or private corporate parties, may or may not be eligible. Your insurance provider can tell you what specific events may qualify for coverage.”
How To Buy Event Insurance? – Things To Consider
You can buy event insurance from any insurance company that offers event insurance policies at reasonable rates. If you want, you shall be able to buy insurance within two years of the event. However, if you feel that you need insurance while the event is really closing in, you can even buy the insurance the day before.
The following are the major factors that you will need to consider if you want to purchase event insurance:
1. Check The Insurance Policies That You Already Have
You can check your insurance provider to see whether the policies you have already cover events or not. For example, if you have auto insurance, it might cover the cars that are rented in your name.
2. Check The Coverage In The Policy
Once you are buying an event insurance policy, consider double-checking the policy to understand what is in the policy and what is not. This is because there are some policies that only apply to a particular part of an event and not the whole event.
3. Have An Emergency Budget
Having a budget beforehand can help you a lot in ensuring how much you can afford to cover yourself if something goes wrong in your event. Hence, you can decide what type of event coverage you must get.
Summing Up
Hope this article was helpful for you in getting a better idea of what event insurance is, why do you need it, and how to purchase it. What is your own opinion about event insurance? Share with us why you think it is important to have event insurance.
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