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How Event Insurance Can Save Your Budget from Unexpected Costs

Posted on 20 Feb, 2023
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Event planners consistently grapple with the primary directive of guaranteeing their events will be hassle-free. But in reality, event organisation comes with its fair share of risks. What’s more — some accidents can potentially escalate into legal actions that result in even further financial burdens. In the interest of pre-emptively addressing these concerns, securing an insurance policy acts as a safety net for event organisers and helps them remain prepared for unforeseen circumstances.

Benefits of Professional Indemnity Insurance for Doctors

What is Event Insurance?

Event insurance offers various coverage options, allowing event managers/organisers to select the most suitable protection for their needs. This type of insurance includes general liability coverage tailored for events, safeguarding event organisers from potential financial losses.

The unforeseeable character of events can give rise to accidents, spanning from minor damages to substantial disasters or force majeure. A force majeure clause/provision in the policy protects both parties from obligation in case an extraordinary occurrence prevents one or both parties from executing the event, such as an "Act of God," riots, strikes, curfew, etc. Hence, exploring event insurance as a preventive measure against high-risk losses during your event is prudent.

Why do You Need Event Insurance?

Gatherings draw individuals from various locations, uniting guests and the event organising team in a single venue, making comprehensive insurance covering both parties essential. Event insurance protects guests and staff against potential losses and damages. Given the unpredictability of accidents, which can induce stress, investing in event insurance is crucial. For instance, if a valuable item is unintentionally broken/damaged during an event, the insurance policy effortlessly takes care of it, guaranteeing a smooth resolution.

Types of Event Insurance Coverage

Various types of event insurance coverage are accessible, and the specific coverage you require hinges on the nature of the event you’re organising. Below are some prevalent categories of event insurance coverage:

1. Insurance for Event Cancellation

When you organise an event, your primary concerns likely revolve around its potential cancellation. How can you recover the expenses invested in it in the event of its cancellation?

Thankfully, there’s a type of coverage designed to cater to event organisers and their needs for this very scenario — event cancellation insurance.

So, what does it cover?

  • Costs associated with rescheduling the event
  • Compensation for the cancellation of speakers/performers
  • Reimbursement for lower attendance of attendees
  • Compensation for the event itself

Additionally, this type of insurance protects event planners against various risks and unforeseen incidents related to cancellations during the event. One such example is coverage for material damage. The insurer will compensate an organiser against accidental/unintentional damage or loss caused to property owned, leased or hired to conduct the event.

2. Insurance Coverage for Event Vendors

During certain events, organisers collaborate with various vendors. While vendors are primarily accountable for their products, organisers also bear responsibility for any losses or damages they may experience. Consequently, event managers should verify that the vendors they engage have appropriate insurance coverage.

3. General Liability Coverage

For example, you’re organising an event at a renowned art gallery. During the festivities, a staff member opens a champagne bottle, inadvertently sending the cork flying toward a valuable artefact, resulting in its breakage. What’s your course of action? Here, having an event insurance plan saves your day. This insurance is indispensable for the event organiser and the venue owner, providing essential coverage, such as general liability coverage, to shield against substantial costs arising from unexpected incidents.

4. Liquor Liability Insurance

Liquor Liability Insurance is essential because general liability insurance doesn’t cover claims associated with alcohol sales. Securing this specialised insurance is imperative if your event includes the sale of alcohol at the event. If you are involved in producing and selling alcohol, it is imperative to verify the inclusion of liquor liability insurance as a part of your general liability coverage.

5. Wedding/Award Insurance

This form of insurance is vital for organisers of special events. The coverage for such policies is specific as such events cater to a niche clientele. For instance, an award ceremony may have a celebrity guest list and include special requirements in terms of security measures. Having event insurance for such ceremonies will help cover the expenses associated with any unforeseen circumstances.

Key Considerations for Event Insurance Purchase

When in the process of acquiring the right event insurance plan, it’s essential to take into account the following factors —

1. Public Liability Insurance: This coverage addresses potential impacts on members of the public working at client sites or in public areas during the event

2. Employer’s Liability:In case of injury or damage, employer’s liability insurance protects you against risks involving event employees.

It is always essential to read and understand the insurance policy document. An event insurance plan typically covers Third-Party Damage and Personal Accident Insurance (i.e., temporary/permanent disability and even the policyholder's death). But you must also know the policy’s exclusions.

Some exclusions of such plans for which you will not receive any coverage include:

  • If destruction or damage to property is intentional
  • Damage/Loss to property occurs due to wear and tear
  • The event gets cancelled due to non-availability of requisite permission from government authorities
  • Damage to materials/contents kept or stored outdoors without proper supervision
  • Specific high-risk activities, such as horse riding, any accident related to fireworks or damage involving extreme sports-related events

Conclusion

Prioritising security and safety is pivotal for the success of any event. Implementing a comprehensive event insurance plan is a fundamental component of event planning that significantly reduces organisers’ stress. As an event manager, ensuring that your events are adequately covered becomes imperative, providing a protective shield against any potential unexpected incidents that may arise.

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This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Liability Insurance, 4010 , IRDAN115P0010V01200607)