Special event insurance

If your business holds an event that differs from its day-to-day operations, you may need special event insurance to cover the extra risks. Certain venues may even require it.

Special event insurance helps small businesses pay for unanticipated costs related to an event, such as an injury or cancellation fees.

You can typically add this coverage to your general liability policy. It could be one-day insurance for an event shorter than 24 hours, or insurance for an event that lasts several days.

Special event coverage protects a business’s investment in an event, such as the cost of renting a venue. It also provides event liability insurance for accidents that cause an injury or damage someone's property.

Specifically, a special event insurance policy covers the following types of claims:

Special event insurance benefits businesses across all industries when they hold a special function such as an awards ceremony, a company picnic, or a team-building event. You can customize the amount of coverage to match your needs, or extend protection to the venue by including it as an additional insured.

Vendors sometimes buy this coverage as well, for short-term protection while they offer their services or products at an event. Depending on the venue, businesses and vendors may need to show a certificate of insurance (COI).

Business owners in the following industries in particular often need this coverage:

Though special event liability insurance covers many risks outside the course of your normal business operations, it won't cover excessively dangerous risks. Your policy likely has exclusions for high-risk activities such as:

While special event coverage can be an important part of your risk management plan, you should consider these other small business insurance policies to fully protect your business from financial losses:

General liability insurance: Covers common business risks like customer injury, customer property damage, and advertising injury. It protects your small business from the high costs of lawsuits and helps you qualify for leases and contracts.

Business owner's policy: A BOP bundles general liability coverage and commercial property insurance at a discount. It protects against the most common third-party lawsuits and property damage. 

Professional liability insurance: Also known as errors and omissions insurance, protects small businesses against the costs of client lawsuits over unsatisfactory work.

Commercial auto insurance: Required in most states for businesses that own vehicles, this policy covers your legal bills, medical expenses, and property damage if a business vehicle is involved in an accident.

Hired and non-owned auto insurance (HNOA): Provides liability coverage for accidents involving personal, leased, or rented vehicles used by your business.

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If you own a small business or organization that needs special event insurance, you can add it to a general liability policy, also called public liability insurance, as an endorsement.

To get a quote for general liability insurance today, fill out Insureon’s free online application. A licensed insurance agent can help you add event insurance, along with any other types of coverage you might need.

Here are a few terms to know when you purchase special event insurance, if you're concerned about a possible cancellation:

Rainout option. Your special event coverage likely includes a rainout option – but you can't use it to cancel an event. It only lets you postpone your event, and even then, the event must be postponed prior to the event date.

Fully earned premium. Special event insurance is a fully earned (nonrefundable) premium. Your insurance company considers the entire premium earned the moment the policy is put in place. That means you won't get a refund for your premium if the event is cancelled.

Cancellation coverage. When it’s available, event cancellation coverage usually requires an additional fee. Even then, many insurance companies offer it only for personal events, like baby showers and birthday parties.

Special event insurance usually excludes communicable disease coverage, such as what was experienced by businesses during the COVID-19 pandemic.

However, some policies will cover a lost deposit or event postponement regardless of the reason behind it. Contact an insurance agent if you're interested in learning more about what is included with special event insurance coverage.