Insuring Your Event - A Complete Guide to Events Insurance

Whether you're a seasoned event organiser or throwing a social, business, or charity event, you'll know how much work goes into hosting a successful event. From booking the perfect venue and caterers to finding the right entertainment and equipment, there are a lot of moving parts. Even when you're meticulous in your approach, things can and do go wrong. From unforeseen cancellations to accidents and mishaps involving members of the public, there are some things you simply can't control. What you can control is your ability to deal with the unexpected, and that's where event insurance comes in.

What is event insurance?

Event organisation is much like laying out the pieces of a jigsaw puzzle and then fitting them all together until the final vision is revealed. But what happens if one or more of those puzzle pieces are suddenly taken away from you? Event liability insurance offers financial protection against a range of risks, both during the organisation of the event and the event itself.

What can go wrong?

Many things can go wrong during event planning, but only those that could cause you a financial loss are insurable. These include:

• The unexpected loss of your venue - whether that's the local community hall for your little one's birthday party or a luxury hotel for a wedding or charity ball.
• The loss of a key speaker or entertainer - which could be an insurable scenario because your ticket sales may have relied upon the draw of that individual.
• Personal injury - where someone gets hurt at your event.
• Property damage - where your event causes damage to the venue or to someone else's personal property.
• Cancellation - whether that's due to adverse weather or some other major event.

What sort of events can be covered?

Size doesn't really matter when it comes to event insurance. If you've put time and money toward an event or are relying on it to raise money for a cause or earn money for a business, you can insure it. You could insure non-profit events like:

• A wedding anniversary party
• A birthday party
• A wedding
• A prom
• A sports event

You can also insure charity events such as:

• A community fayre or fete
• A charity ball or auction
• A sponsored walk, bike ride, or run

Events that make a profit for a business can also take out insurance cover, including:

• Conferences
• Trade events
• PR events

Types of cover available

Event insurance is a collection of covers that address the most common risks associated with holding an event attended by members of the public. All good event organisers will carry out a risk assessment early in the process to identify critical areas and then plan how to manage those risks. Some of these will be managed by health and safety measures, but there are also risks that cannot be physically controlled. As you'll see, event liability coverage has been tailored to protect you against both types of risk.

Public liability

Event public liability insurance is one of the key covers you need to keep your finances safe. Even though the venue where you're holding the event may hold its own public liability cover, as the organiser of the event, you are ultimately responsible for the members of the public attending. If a member of the public is injured at your event or their personal property is damaged, you will be liable for all the associated costs, not the venue.

If a guest or attendee trips on a cable and hurts themselves or slips on a spillage - you are liable. If you accidentally knock an expensive vase over while carrying equipment into your venue or drop a crate of red wine onto their carpets, you'll need to shoulder the costs of repairs or replacements.

Public liability will deal with any compensation, medical fees, and legal costs - giving you peace of mind that should the unexpected happen, you're covered.

Employers' liability

This type of cover requires special attention. If you're throwing a one-off event and only hiring people to work there for a few hours, you may think you don't need employers' liability cover. You do! Unless the people you're hiring to serve food and drinks or help with the heavy lifting are direct members of your family, you must hold at least £5 million of employers' liability cover. This can be used if a member of staff claims they were injured or made sick as a result of their employment at your event.

Hired-in equipment cover

Unless you're the owner of a busy events company, you'll probably hire equipment when you host an event. From tables and chairs to stages, props, and light and sound equipment, you are responsible for the equipment you hire and would be liable if it were damaged, lost, or stolen while in your care. Sometimes, a hirer includes equipment cover, but this will be at an additional cost, and you should never assume the cover is there as this assumption could cost you dearly.

Event cancellation

If you're hosting a small, not-for-profit event, its cancellation may be disappointing but not necessarily financially damaging. But this is not true for all events. You may have non-refundable deposits paid to a range of businesses and your business or charity may have been relying on the money raised at the event.

How likely is a cancellation? It's more common than you think, from bad weather making outdoor events unviable to losing power at a venue or a no-show from your star performer due to illness or travel disruption. Event cancellation insurance can be used to cover those non-refundable expenses and a portion of your predicted profits.

Cyber cover

If you have an online platform linked to your event for ticket sales or donations, you can help protect your attendees' data and your finances by taking out cyber cover. This specialist cover can help you navigate the cost and legal implications of a cyber attack and protect any funds lost through hacking or phishing.

What isn't covered?

Once you've gone to the trouble of taking out events insurance, don't fall at the final hurdle by not knowing what isn't covered as standard. For example, cover for cash may not be present on your policy as standard. This could be a big problem at community and charity events where stalls and charity tins and buckets can see a great deal of cash. Be sure to add that cover if you need it.

You won't be covered for event cancellations if you made bookings in the knowledge that there was a known risk of cancellation. Likewise, you won't be covered if you choose to cancel the event because you're unhappy with low ticket sales.

Take great care of your equipment. You won't be covered for that financial loss if something is stolen when left unattended or in an unlocked vehicle.

It's important to check that all the activities taking place at your event are covered by the event liability insurance. Some higher-risk activities may not be covered as standard.

You can cover most event activities with insurance if you're willing to pay for the policy. If you've researched and found that activities at your proposed event are deemed hazardous, don't worry. This doesn't mean your event is uninsurable; it simply means you'll have to take a little more of certain covers to accommodate the higher level of risk. Such activities include:

• Sports matches
• Inflatable play equipment
• Fairground rides
• Bonfires and fireworks
• Trampolines
• Open water activities

How much does event insurance cost?

The limits you set on each of your different types of cover will have a major impact on the cost of your policy. The level of cover you need will depend on the type of event you're hosting and the activities available, where it is, how many people are coming, and how long the event will last. Discussing the finer details of the event with your insurance provider will ensure you get those levels of coverage spot on. You certainly don't want to be underinsured (that could be a costly mistake), but being overinsured means paying more than you need to with no benefits.

Taking out a single special events insurance policy for a one-off event is usually a little cheaper than an annual policy, but you need to get that right, too. Although your event may only run for one day, you will often need to attend the venue the day before and after to set up and clear away. Make sure that you take out a sufficient number of days of cover for your single event or you won't be covered for incidents that occur on those days either side. If you host multiple events throughout the year, taking out an annual policy rather than several single-event policies is cheaper.

Small events can be covered for under £30, but larger events involving high-risk activities could cost hundreds of pounds and beyond.

FAQs

Do I have to take out special event insurance?

The only cover you're required to take out by law is employers' liability insurance (if you're hiring staff for your event). Therefore, legally, you don't need to take out events insurance, but most venues will not let you host an event if you don't hold a set level of public liability cover. Local authorities may also want you to hold this cover when you're throwing open-air events in a public area, such as a street party.

How do I get the best deal for event insurance?

Having all the information about your event - notably expected attendee numbers and planned activities - will help you protect it without over-insuring it. A specialist insurer like Park Insurance can help you find the best deal by taking a personalised approach to your policy rather than offering your preset levels of coverage.

Does event insurance cover stock?

If you've bought food, drinks, or products to sell at your event, they may not be covered as standard. You can easily take out product and stock cover to protect your assets, including while they're in transit to the event.

Can I get cover for my own equipment?

If you're bringing your own sound system, tables, or decorations to your event, you can take out cover for them, but they are unlikely to be covered as standard. Your insurer will need evidence of the cost of replacement, so be sure to have accurate figures ready.

With over 30 years of experience tailoring specialist policies, your event is in safe hands with Park Insurance. Be prepared for all eventualities and focus on planning the best event yet with a bespoke policy made specifically for you. Give the friendly team a call today to get the ball rolling.