How to Get the Best Event Insurance in 2024

Whether it’s organizing a summer wedding or an office party for the holiday season, the right kind of insurance can set your mind at ease and ensure that you get to focus on the festivities themselves.

Event insurance is there for those occasions when things don’t go according to plan, ensuring you, your loved-ones, colleagues, guests and friends are protected.

With the right insurance policy, you can make sure you are prepared, leaving you to get back to the business of making memories. This guide covers how event insurance works, what it covers and how to make sure you get the best protection so that your event goes off without a hitch.

What is event insurance?

Event insurance covers the organizer of a function from the liabilities associated with hosting. It can consider a type of business insurance when taken out by an event professional or company, but it may also be taken out by individuals for a one-off special event.

Costs can quickly spiral out of control when something goes wrong at your event. The right policy will make sure and your company you are protected. Generally speaking, this kind of insurance comprises some form of general liability insurance, with additional add-ons available pending on the characteristics of your event and its specific set of risks.

These can include the following:

Coverage type	About
General Liability Insurance	General Liability Insurance, often referred to as Commercial General Liability Insurance (CBL) covers the host of the event from bodily injury claims or third-party property damage.
Tenants Legal Liability Insurance	Tenants Legal Liability Insurance provides coverage for damage caused to a rented venue or site during your rental period.
Liquor Liability Insurance	Liquor Liability Insurance protects hosts and businesses that serve, distribute or sell alcohol. It ensures you are covered in the event of third-party property damage or bodily injury inflicted on the part of guests who may be intoxicated.
Special Event Coverage	Special Event Coverage usually encompasses specific protections tailored to your event type, venue and size, encompassing a range of additional add-ons should you need them.
Cancellation Insurance	Cancellation Insurance protects you against lost expenditure in the event that your event is cancelled due to circumstances beyond your control, such as adverse weather, the non-appearance of a key figure or performer or national mourning or terrorism.
Medical Payments	Medical payments insure you are protected against additional medical fees not already covered by general liability insurance in the event of bodily injury at your event.

What does event insurance cover?

Event insurance can be used to cover a wide array of functions from weddings to trade shows. The specific extent or protections will always depend on the policy and the kind of event it is being used to cover. Basic liability insurance policies run the gamut from $1 to 5 million but some insurers go much higher.

Broadly speaking, insurable events can be divided into three different categories:

When do I need event insurance?

While there is no legal requirement to purchase insurance for private functions in Canada, it is advisable to obtain coverage for your special events, especially if you are renting the premises or there are valuable items on-site. Even if it is your property, it is always a good idea to protect your belongings if you are hosting an event open to a wider public.

Things take on an added element of risk whenever alcohol enters the equation, so it's best to make sure you have your bases covered. In the worst-case scenario of a lawsuit emerging in the aftermath of an event, costs can quickly get out of hand, so it is always a good idea to play things on the safe side.

Let's see an example:

How much does event insurance cost?

Every kind of event is different and faces different forms of exposure. An office party for ten with no alcohol is different from an art gallery opening which is itself different from wedding with alcohol and valuable on-site. As a result, the cost of insuring your function will be unique, taking into account its particular kinds of risk.

While some insurance providers advertise premiums as little as $75, most events would be more significantly more expensive than this. Many liability coverage policies start at $1 million to make sure you are insulated from the effects of expensive lawsuits. Because a personal injury claim can easily exceed that number, many policies offer as much as $5 million in coverage.

Here are some factors to think about when trying to calculate how much an insurance policy might cost:

• Event type
• Number of people guests or participants
• The presence of alcohol
• Length of your event
• The date and season of the event
• Staff and third-party vendors involved
• Your claims history
• The liability limit you opt for

Need a quote of your own? Wondering how much event insurance will cost for your wedding? The insurers at the top of this page can help offer you customized coverage for your special event.

Does event insurance cover COVID and pandemic-related risks?

In most cases, it does not.

Every policy is different, but it is important to check the specificities of your own to see whether COVID-related risks are included in your insurance package. Most insurance underwriters do not factor communicable diseases such as COVID into their policies. Cancellation insurance add-ons, may however, be available for event insurance packages. Ask your insurance provider if they offer such an add-on.

What is the difference between entertainment and event insurance?

Entertainment insurance typically is a form of insurance that caters specifically to businesses operating in the entertainment industry, usually in a commercial context. While this form of insurance will usually cover events, it is typically broader in its coverage and can span a larger bracket of time.

Furthermore, the factors taken into consideration for calculating insurance premiums are somewhat different. INsureres will inquire about the purchasing company's annual revenue, the number of employees and a wider array of liabilities. This might not be the case for an event insurance package purchased for a private wedding for instance, which is a one-off event and does not operate on a for-profit basis.

What is liquor liability coverage and do I need it?

Liquor liability coverage insures you against any forms of liability associated with the consumption, distribution and sale of alcohol during the course of your event. While it is not mandatory, it is highly recommended given the array of additional risks and liability intoxicated people pose to the premises in question, themselves and others. If someone is injured or damages the property over the course of your function, you may find yourself having to cover legal fees. Having the right policy is an indispensable tool in dealing with this.

To stay on top of the kinds of risk you are exposed to by providing alcohol at your event, here is a list detailing the different forms of liability alcohol poses to you as a host:

• Server liability: serving intoxicated individuals who then cause harm or damage to others or property
• Occupier liability: accountability for ensuring the safety of people on the premises from harm.
• Employer liability: responsibility for harm caused by or to employees at work events with alcohol present
• Sponsor liability: as a promoter of risky activities

What is the difference between wedding insurance and event insurance?

Wedding insurance is a type of event insurance that covers you against the specific set of liabilities associated with weddings and receptions.

It comprises the same set of protections available with a normal event insurance policy, but will often include add-ons tailored for weddings. These usually include the kinds of financial losses incurred through cancellations, unexpected illnesses of participating parties (typically not including COVID) and the theft of wedding gifts. With so many other logistics to worry about during the big day, insurance should not be one of them.

Can I get insurance for an event being held in a private home?

Yes, you certainly can.

In most cases, insurance providers will offer specific policies tailored to events held at private homes. There are also options available for events held at community facilities, including but not limited to churches, schools, public parks, town halls, and community centres. Because getting the protection you need should not mean having to leave the places that have the most meaning for you and your loved ones.

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