Event insurance provides package coverage for the sponsor of public or private events, such as concerts, festivals, conferences, trade shows, sporting events, and celebrations. Available coverages include property insurance, general liability insurance, employers liability insurance, and cancellation insurance. Below is a list of 10 things one expert in the area of entertainment and special event insurance finds are often misunderstood by agents and consumers alike.
1. It is imperative to review the venue contract and the requirements, wording, etc. that the named insured has agreed to. Many venues ask for everything, but much of it is negotiable. If something seems unreasonable (like workers’ compensation for a single artist performing or automobile liability when the named insured is not renting any or taking any vehicles to the venue), advise the insured to speak with their contact at the venue to see if they will waive certain requirements. Many venues will work with them and take requirements out, saving the client on the premium.
2. Very few insurance companies insure Rap, Hip Hop or EDM (electronic dance music) events, and those that do may have some additional requirements in order to quote. For example, some may require a certain ratio of security to attendees and/or metal detectors/wands that every attendee, performer and guest must go through.
3. The general liability for events is not like normal CGL – even if it is in an annual policy. Only the events that are scheduled on the policy are covered. No coverage for normal operations, just the events.
4. Premium is usually based on the number of attendees at an event. Most companies will show the estimated number from the application on an endorsement attached to the policy, and if there are more at the event than indicated, there could be an issue in the event of a loss.
5. Most insurance companies exclude athletic participants for liability and medical – it can be bought back.
6. A sports-related event can be insured for spectators only or can be insured for participants, which picks up coverage for both and includes participant liability, as well as some limited participant accident medical coverage.
7. Other major exclusions include (but are not limited to) fireworks, inflatable devices, aircraft and watercraft.
8. Some insurance companies include primary and non-contributory wording in their form and others charge for it – per entity.
9. Host liquor is usually included in the liability for those named insureds not in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages, and not profiting from selling it at the event. If the named insured is in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages or profiting from sales, liquor liability should be added to the coverage – even if there are no sales. Have the insurance company charge a minimum premium to avoid any issues.
10. Most if not all insurance companies make a charge for a waiver of subrogation. Some make a single charge and the coverage is blanket; others charge per entity.