Special Event Insurance

By Diane Tait

Image courtesy wikimedia

If you’re planning a family reunion, bar mitzvah or wedding that involves caterers, hotels and/or other expenses that could easily be derailed by bad weather or some other act of God, you should consider springing for special event insurance.  Designed to help you avoid taking a financial bath should something catastrophic occur that could cause your event to be postponed or cancelled, most consumers don’t even know this coverage exists.  Business owners, on the other hand, have long known of and used this kind of insurance to make sure that if worst comes to worst, they have a way of recouping their expenses so they can restage the event at a later date.

There Goes the Neighborhood

Being the thunderstorm capital of the country, Florida has its fair share of storms that produce torrential rain along with damaging wind and hail.  If you’ve spent tens of thousands of dollars to house, feed and entertain your guests and a named storm or a summer squall knocks down trees or knocks out the power, you could find it impossible to host that wedding reception, 50^th Anniversary or reunion banquet.  If events beyond your control force you to postpone or cancel an event, special event insurance can keep you from having to face a financial hardship to keep your guests happy.

When it comes to a wedding, not only are the wedding hall and the caterer going to have to be paid again, so to could the wedding photographer, the band and the tuxedo rental company.  Not to mention if the wedding is delayed for even a day, the honeymoon is over, since airline tickets and hotel reservations that were booked in advance will have to be purchased again for a later date.  Speaking of the bride and groom, there is even a provision in some special event policies that kick in should either be unexpectedly called back to active duty in the military.

The Party’s Over

Image courtesy wikimedia

When it comes to damages, have you ever considered who would be held responsible should one of your guests cause damage to the hall you rented for the event or the furnishings therein?  Unless you’re insured, the cost of repairing or replacing damaged items falls to the host.  What happens if a guest, band member or photographer slips and falls or trips over a chair only to sprain their ankle?   Guess who would be held liable for the medical bills?  That’s right, the host would.  While it can take months to schedule, book and manage an event, all it takes is one careless moment or an act of God to ruin all that hard work.  Special event insurance usually provides coverage for 24-48 hours of the event.  This provides the host with a viable Plan B should the worst come to pass.

What Won’t Special Event Insurance Cover?

      1.      Public events including recitals, sporting events and public exhibitions aren’t covered.

      2.      Neither are bachelor or bachelorette parties.

      3.      If your wedding photographer or videographer were to lose the footage of your event, this is not covered.

      4.      If the bride or groom has a change of heart at the last minute, you won’t be reimbursed for the reception. 

      5.      If there’s a mix-up with the caterer or the wedding cake doesn’t arrive, this isn’t covered.

When Should I Buy Special Event Insurance?

Image courtesy USAF

The sooner the better.  Before you start making deposits or purchases for the event, you should talk with your friendly, local insurance agent to find out what is and is not covered.  You also don’t want to wait too long, since restrictions may apply, especially if a named storm appears to be heading your way.  As a rule, you should acquire coverage at least a month in advance.  But you can acquire coverage as long as two years prior to a scheduled event.

Another thing you should do before contacting your insurance agent is to call your credit card company to find out what kind of coverage they provide for purchases made with their card.  You should also discuss with your insurance agent whether your existing home, auto or liability coverage could be extended to cover some of the risk. Ask the venue and vendors whether their liability insurance will cover some of the charges should something unforeseen occur.  Also ask your agent what is not covered so you can best determine how to mitigate the risk.  For instance, what happens if the bride and groom are forced to change or cancel their honeymoon reservations due to either a disaster or illness?  

While special event insurance can most definitely help you recover losses sustained during an event, once the big day is over, you’re on your own.  That means that lost luggage, theft of items from the bride and groom’s room or medical coverage for injuries or illness sustained during the honeymoon aren’t covered by special event insurance.  For that, you’ll need to talk to your insurance agent about acquiring travel insurance.

While special event insurance won’t cover every contingency before, during and after your event, it’s the one type of insurance that can definitely keep your big day from being a big bust.

Diane Tait owns and operates A&B Insurance.  To find out more about how you can save money on home owner’s insurance, go to her site or fill out the form at right.