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There’s always the risk that someone will get injured at an event, specifically at a non-business-related event such as a party or any type of celebration. Whether it’s a wedding, bar mitzvah, or a birthday party, the chance that someone could get hurt or injured always lingers about, which could unfortunately lead to a lawsuit. And in these cases, whoever is hosting the event could be held liable.

Event Liability Insurance

Event liability insurance protects you from possible exposure of injury or property damage taking place due to any negligence on your part during an event you’ve held.

Many people aren’t aware that their home insurance policies will cover them for lawsuits related to accidents that happen away from their home. The liability coverage that is part of your home insurance helps protect you against the potential increased financial risk that could arise from injury or property damage that you or members of your household may cause to other people either on or away from your property.

For example, if you rent out a banquet hall for your son’s communion or your mother’s 80th birthday party, under your existing homeowner’s insurance, you could have certain coverage in the event that you get sued for something that happens at the party.

However, many catering halls, country clubs or other venues will have a contractual requirement that insists you pay for their possible legal defense and any settlement or damage costs in case a lawsuit is brought about as a result of something happening at your event. Most, if not all homeowner policies specifically exclude such contractual obligations.

Solution: Take out a Special Event policy with the venue as an “additional insured. Make sure that your liability coverage is significant. It is usually recommended that a liability limit of $1 Million be purchased. A Special Event policy provides broad protection for situations in which your special event must defend itself against possible lawsuits or pay damages for personal injury or property damage to any third party. This kind of policy also gives contractual liability protection to the venue or event sponsors by adding them to the policy as an “additional insured.”

Personal Umbrella Insurance

For many clients, a Personal Umbrella Liability Policy is also recommended to extend protection to higher amounts and additional accidents not covered under a Special Event policy. Personal Umbrella policies, however, will not cover contractual obligations or offer any sort of coverage to cover the legal defense of the event facility in such cases like those mentioned above.

All types of accidents happen every day, all over the world. When these accidents happen, a lawsuit could arise. Your local insurance agent can help you determine the amount of overall liability coverage that is needed to protect your financial well-being in possible unforeseen events.