Party Planning 101: Event Liability Cover is a Must-Have
Ever got the jitters about what could go wrong at your event? Fortunately there’s an insurance solution to help you overcome that: event liability insurance.
In this blog, we'll unlock the secrets of why event liability insurance is a game-changer – and a non-negotiable – for helping you plan events that are not only memorable, but also financially secure.
What Is Event Liability Insurance?
Event liability insurance is your trusty party planning sidekick. It covers you for liability that might arise due to unforeseen mishaps during your event, indemnifying you against claims arising out of third party property damage and/or bodily injury sustained at your event.
This type of insurance is designed to protect events organisers, sponsors and venue owners from having to cover the full cost of liability claims. Whichever of these roles you play, event liability insurance is an indispensable tool in your planning tool belt. It gives you:
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Increased credibility
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Peace of mind
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Financial protection from lawsuits
Event liability insurance is also critical for ensuring that your business is able to operate without interruption if something does go wrong. This helps to ensure business continuity and growth, allowing you to run events now and host top-notch gatherings in the future.
Why Do You Need Event Liability Insurance?
Picture this: one guest spills their drink on the stairs everyone uses to exit your event venue. Another guest slips in the liquid, tumbles down the stairs and injures themselves. Or, on a particularly windy day, your marquee decides to take flight, leaving destruction in its wake.
Without event cover, you’d have to cough up to cover the bill for your guests’ medical expenses and the venue owners’ damaged property. That’s not the type of hangover anyone wants after a party.
Unfortunately, the Safety at Sports and Recreational Events Act of 2010 (SASREA) guarantees that you’ll have to deal with a massive financial headache if anything goes wrong at your event.
The law regulates public events and places the responsibility of event safety and security at the feet of the “controlling body, the event organiser and/or the stadium/venue owner”. In other words, if you’re one of the parties responsible for making the event happen, you’re responsible for safeguarding the physical well-being and safety of your guests.
It’s important to keep in mind that fault doesn’t come into play here. Whether you’re the organiser or venue owner, you’ll be held jointly and severally liable for damages. In other words, if one party can’t pay their share, the other party will have to step up and cover that portion.
What Does Event Liability Insurance Cover?
Let's get into the nitty-gritty of what event liability insurance covers. Think of it as the ultimate shield for your event, safeguarding you from unexpected hiccups.
Event liability cover generally gives you protection in two instances:
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Public liability: Public liability covers third-party bodily injury or property damage that happens at your event, so your guests can party on without any worry!
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Products liability: Planning on selling food or beverages at your event? Products liability has your back. It covers liabilities arising from goods you’re selling at your shindig.
For more comprehensive cover and ultimate peace of mind, you’ll need to add some extensions to your policy.
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Damage to leased or rented property: Imagine renting a beautiful venue and, oops! Someone accidentally damages the chandelier. This extension covers the repair costs, ensuring you can return the venue to the owner in the same pristine condition you received it in.
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Collapse of temporary structures: From tents to marquees, this coverage extension takes care of it all.
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Food and drink: Serving up delicious treats? This extension covers liabilities arising from the sale of food and beverages, so you can focus on the flavour, not the fallout.
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Spread of fire: In case things get a bit too hot, this covers bodily injury and property damage resulting from a fire spreading due to negligence. Safety first, party second!
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Emergency medical expenses: Accidents happen, but this extension has you covered. It reimburses reasonable third-party medical expenses for injuries that occur at your event.
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Wrongful arrest and defamation: Just in case things get a little dramatic, this extension covers wrongful arrest, false imprisonment, and even defamatory statements.
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Statutory defence costs: This extension ensures you’re legally secure by covering the costs of investigations or prosecutions for alleged breaches of statutes.
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Extended claim reporting option: A critical add-on for one-time events. It allows you to report claims beyond the policy period, giving you peace of mind even after the confetti settles.
How Much Is Event Liability Insurance?
Alright, party people, let's talk about the green stuff. How much does event liability insurance cost? Well, it's a bit like pricing out the ingredients for your favourite cocktail – a mix of factors determines the final tab.
1. Size and Type of Event
The bigger, the better. And more expensive. A massive music festival will cost more to insure than a cosy backyard wedding. The type of event matters too – a corporate shindig might have different considerations than a sweet sixteen bash.
2. Event Location
The venue sets the stage and it can also influence the cost. High-risk areas or venues may bump up the price. Hosting a beach party? It might have a different price tag than an indoor event.
3. Duration of Coverage
How long is your event running? Longer events might mean a higher premium, but it's all about ensuring you're covered for the entire duration.
4. Coverage Limits
Like picking the size of your safety net, coverage limits play a role. The higher the limits, the more protection you have, but it might mean a slightly higher cost. It's finding the sweet spot between peace of mind and budget.
5. Extensions and Additional Coverage
Extensions give you additional peace of mind, but those extra layers of protection will come at a cost. It's like adding extra toppings to your pizza – totally worth it for that extra flavour.
6. Claims History
Just like a driving record affects car insurance, your event history matters too. If you have a clean track record, you might score a better deal.
Get Grand Finalé Ready With Event Liability Insurance
Now that we've uncovered the layers of protection offered by event liability insurance, you're armed with the knowledge to make your next event a blockbuster hit.
From shielding against unexpected mishaps to ensuring financial stability, this insurance isn't just an option, it's a necessity for any savvy event planner.
This article is for informational purposes only and should not be construed as financial, legal or medical advice.
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