The Reason You'll Need to Invest in Secure Special Event Insurance

It is exciting to watch our world open back up following the pandemic. Now, finally, we are seeing local special events happen again.

Are you making plans to host a special event? Do you have a private special event such as a wedding or birthday celebration? Is your business planning a grand reopening? Is your charity planning a nonprofit fundraiser?

Whether your event is local or virtual, you need to be sure your investment is protected by carrying special event insurance. Learn what type of insurance you need for your event and be sure it’s a flawless success!

Perils & Pitfalls of Virtual Versus Local Special Events

During the last year and a half, we have gotten very used to hosting and attending virtual events for personal and professional purposes. After all, what other option have we had?

But now we have options again. And this requires a consideration of the different risks that accompany these different types of special events. Let's take a look.

Risks of Virtual Special Events

In some ways, virtual special events carry quite similar risks to in-person events. For example, virtual special events can still be cancelled or postponed.

Typically this happens due to a speaker no-show or last-minute cancellation or transmission problems due to technology.

And in other ways, virtual special events actually carry a higher risk than local events do.

An example is the risk of cyber hacking that causes event disruption, such as the "Zoom bombing" that ruined many virtual meetings (and made international news headlines) during the early days of the pandemic.

Virtual events are also unusually vulnerable to other cybercrime activities, such as data leaks and identity theft.

Another thing to consider is whether your virtual event will include the participation of sponsors. Many corporate sponsors require proof of special event liability insurance (at a minimum) before they will sign on to sponsor an event.

Risks of In-Person Special Events.

As you can see, some of the risks of virtual events are the same as live local special events.

For example, there is still the risk of a speaker no-show or last-minute cancellation. There can still be the risk of technology malfunction that leads to event failure.

But there are other risks specific to local events, including the risk of cancellation due to bad weather or damage to the event venue.

There is always a risk that a guest, vendor, volunteer, performer or contract worker will get injured during your event. This risk escalates if you plan to have live music or any types of interactive events or games.

And if your menu includes liquor, your liability may extend to what happens even after your guests leave the premises. Special care is required here to avoid being held liable for any drunk driving accident that may occur after your event ends.

And sponsors will likely require proof of event insurance before signing on to participate.

Risks of Hybrid Special Events.

Hybrid special events include both a virtual and a local component.

An example might be a streaming virtual event from a live event location site. Often this is done with sporting events, conferences and many private events such as weddings and graduation ceremonies.

If you are hosting a hybrid special event, you will want to think through the risks for both components - virtual and local - and be sure you are carrying adequate special event insurance to protect your investment.

What If You Don't Know What Special Event Insurance You Need?

If you are reading through this blog post and thinking, "But I don't even know what kind of special event insurance I need”, don’t worry.

Every day, individuals and businesses begin planning an event for the first time. This learning curve is a necessary part of making sure your investment in your special event pays off for you!

So where should you start if you aren't sure what type and level of special event insurance you need?

1. Get your event details down on paper.

The first step is definitely to write down all the details of your special event.

• What is your event date?
• When will the actual special event start and end?
• When will setup and teardown for your special event start and end?
• What is the schedule of events?
• Will you have sponsors involved?
• Will you have volunteers at your event?
• Will you have performers or vendors at your event?
• Will your event include sports or interactive activities or games?
• Will liquor be served?
• Is your event local, virtual or hybrid?
• Will your event include or cater to minors?
• Will you rent a space for your event or host at your own space?

2. Schedule a call with your Mackay Insurance broker.

Special event insurance represents a mere fraction of the investment of time, money and sweat equity you are pouring into your special event.

Once you have all of the details of your special event down on paper, it is time to sit down with your Mackay insurance broker and have a conversation about how to protect your investment.

Here, our shared goal will be to identify the exact components your special event insurance package must include.

This way, you will not end up paying for coverage that doesn't apply to your event. And you will not end up going into your special event with coverage omissions that could leave you vulnerable to lawsuits.

Contact Mackay Insurance for Your Belleville and Napanee Ontario Special Event Insurance Needs

Here at Mackay Insurance, our friendly and experienced brokers are delighted to help you plan a successful, memorable and profitable virtual, hybrid or local special event!

Contact us at 613-966-5740 to chat about your special event insurance needs or visit us online for a fast free quote.

Special-event insurance is a less well-known product – in fact, most people don’t even know they need it until after their event date has passed!

But depending on what you’re planning, you really may need it. In this litigious society we live in today, you just never know when an unexpected oops might turn into a headline-making lawsuit.

In this post, find out more about what special-event insurance is, when you need it, how much insurance you need and how to get it.

What Is Special-Event Insurance?

Special-event insurance might more accurately be named “special-event planner insurance.” It could also be called “one-day event insurance,” since in most cases it is active only for the time the event is taking place.

The primary purpose and goal of this type of insurance product is to protect you, the event planner, from any event or action that might cause you financial or personal distress.

More specifically, special-event insurance is designed to cover anything and everything that might occur during your special event that no other existing insurance policy will cover.

What Does Special-Event Insurance Cover?

Special-event insurance, like most insurance products, can be customized to some degree. This means the answer to the question of when you need special-event insurance may not be clear-cut at first.

It is always smart to talk with your Mackay broker to share the details of the event you are planning and discover if special-event insurance is a smart choice.

For general purposes, special-event insurance is designed to cover issues such as the following:

• Damage/destruction of rented property (i.e., venue, tables, chairs, tent, vehicles)

• Bodily injuries sustained by bystanders, participants, staff or you

• Extra costs sustained by last-minute vendor cancellations or changes

• Financial losses due to participant cancellations (permits, security deposits, etc.)

• Issues related to alcohol (this often requires a special rider on the policy)

• Event cancellations due to weather, fire, power outages and other unforeseen issues

When Do You Need Special-Event Insurance?

Here are some common event-planning scenarios to help you think through whether or not you may need a special-event insurance policy.

You are hosting an event at your home

In general, if you are hosting small events in your home, your homeowner’s insurance policy will probably be sufficient to cover you.

Here, you want to read the fine print of your policy, because sometimes there are exclusions for gatherings over a certain number of people, where alcohol will be served, specific types of gatherings (such as bachelor/bachelorette parties) and similar limitations.

If you will be bringing in a band, a DJ, portable bathrooms, a tent, valet parking attendants or any similar additions, you may also need one or more permits from your municipality.

And if you are hosting a party where most of the guests are personally not known to you, be sure to talk with your Mackay broker to find out if you need special-event insurance to increase liability coverage during the event.

You are hosting a personal event at a rented space

Purchasing special-event insurance is always a smart move if you are hosting an event at a rented space. If alcohol will be served, be sure to mention this when you take out your policy. Often this will require a separate policy rider.

Here, it does not matter whether the event will be private (invitation-only) or open to the public. In either case, and especially in the latter case, unless the rental venue specifically states otherwise, purchasing your own independent special-event insurance policy is a protection you don’t want to be without on the day of your event.

You are hosting an event for work

If the event you are hosting is for your employer and is part of your job description, it is quite likely your employer already has insurance that will protect you, but be sure to ask!

If the event you are hosting is for your own small business, talk with your Mackay broker about whether your existing small-business liability insurance policy is sufficient to protect you or if you need to add a separate event insurance policy for the day.

How Much Special-Event Insurance Do You Need?

As with any insurance policy, you have options when it comes to purchasing your policy. In general, event insurance is an inexpensive product and also one you have a great deal of control over.