Events Insurance Explained

If you are holding a special event of any type which involves people outside your immediate family, home or business premises, you will require an events insurance policy to cover your liability to others and any property that may be used for the event.

Events insurance is a type of specialist commercial insurance that is usually sold as a policy package of liability, property and cancellation cover options.

Cover is available for individuals or companies who are either organisers or participants in the event. Nearly every type of event is catered for including sporting events, club meetings, fetes and fairs, festivals, exhibitions, parties and anniversaries, weddings and special events.

All polices will offer a minimum basic cover of public liability insurance which protects the event organisers against any costs or damages awarded, resulting from being sued for injury or loss to third-party members of the public. This includes claims from the event's attendees.

In the United Kingdom the minimum level of public liability cover offered is one million pounds, which can be raised up to five million for large events.

If an organiser is arranging an event where a licence is required from the police or local authority, such as a street party or gathering in public, the usual minimum requirement is two millions pounds of cover.

Unless you are Superman it is highly likely that you will employ people to help contribute to, run or organise the event. Even if these people are unpaid, it is still a legal requirement that the event organiser has employers liability insurance cover in force to protect against claims from workers and helpers who may be injured.

All events insurance policies include options for both types of liability cover for organisers, participants, performers and exhibitors.

A popular option for which an event insurance policy provides cover is that of event cancellation. This covers the costs of having to abandon, cancel or postpone the event due to unforeseen circumstances. For example a policy will cover cancellation if caterers fail to provide food, entertainers or performers do not show, your staff are unable to attend or even if the venue has become unavailable or double booked.

An expensive additional cancellation cover against extreme bad weather for outdoor events, called 'pluvious' cover, may be available for certain types of event such as weddings at certain times of the year.

The third type of cover offered by events policies is that of property cover. This is insured on an indemnity basis where the organiser declares the replacement value of property used for the event. This could be cover for anything that is hired in, such as marquees or dinner services, or against damage to property loaned or leased for a day, such as a local village hall.