Liability and the Big Wedding. You May Not Be Covered.

When you’re talking about hosting a special event – one that’s non-business related - there’s always a risk that someone may be injured. Whether it’s a wedding, birthday party or a family reunion, the chance that an accident might happen resulting in someone getting hurt or injured always lingers about, which could lead to a lawsuit. In these cases, whoever is hosting the event could be held liable.

Event Liability Insurance                                                                             

Event liability insurance protects you from possible exposure of an injury or property damage occurring due to perceived negligence on your part during an event you’re hosting.

Some people are not aware that their homeowner’s insurance policies will cover
them for lawsuits related to accidents that happen away from their home. The
liability coverage that is part of your home insurance helps protect you
against the potential increased financial risk that could arise from injury or
property damage that you or members of your household may cause to other people either on or away from your property.

As an example, if you rent a banquet hall for a special event, under your existing homeowner’s insurance, you could have certain coverage in the event that you are sued for something that happens at that event. 

Keep in mind, however, that many catering halls, country clubs or other venues
will have you sign a contract with a requirement that you pay for their legal
defense and any settlement or damage costs in case a lawsuit is brought about
as a result of something that happens at your event. The reality is that most,
if not all, home policies specifically exclude such contractual obligations.

The Solution: Take out a Special Event policy that lists the venue as an "additional insured." Make sure your liability coverage is significant. It’s usually recommended that a liability limit of $1 Million be purchased. A Special Event policy provides broad protection for situations in which your special event must defend itself against possible lawsuits or pay damages for personal injury or property damage to any third party. This kind of policy also gives contractual liability protection to the venue or event sponsors by adding them to the policy as an "additional insured."

Personal Umbrella Insurance

A Personal Umbrella Liability Policy is also recommended for many clients to extend protection to higher amounts and additional accidents that would not be covered under a Special Event policy. Personal Umbrella policies, however, will not cover contractual obligations or offer any sort of coverage to cover the legal defense of the event facility in such cases like those mentioned above. It’s important to understand that for an event that requires a signed contract, you must be aware of what insurance coverage you have, and what you don’t.

All types of accidents happen every day, all over the world. When these accidents happen, there could be a lawsuit. Read your policy carefully and ask your insurance agent to help you determine the amount of overall liability coverage necessary to protect your financial well-being and peace of mind if you’re planning a special event.