Things You Should Know

Why Do I Need Special Event Liability Insurance?

If you organize family, business or community events, you know how much planning and effort is involved to make the occasion both safe and successful for everyone involved. Even with the most careful planning, unexpected situations can arise that you might not be prepared for.  Without adequate liability protection you will have to pay damages and defense costs yourself.  If the damages and costs are high enough you may suffer financial hardship or bankruptcy.

What Does The Special Event General Liability Policy Cover?

This policy was specifically designed to protect your event anywhere in the United States, it’s territories or Canada.  The general liability policy will pay the damages imposed upon you or your business by the law.  It also pays the cost of defending you when a claim is made against your policy.  Coverage is written on a full occurrence basis by an Admitted, A rated US insurance company and is tailored to fit your specific event needs.  The policy will also add the venue, sponsors, volunteers and co-producers as additional insureds.

Certificate of Insurance vs Additional Insured Endorsement

When producing a special event you will often be asked to provide a certificate of insurance to verify the existence of insurance coverage under specific conditions.  More specifically, the document lists the effective date of the policy, the type of insurance coverage purchased, and the types and dollar amount of applicable liability.

Frequently, another party such as the venue or a sponsor will ask to be named as an additional insured on your policy.  The additional insured then enjoys the benefits of being insured under your policy your for negligent acts and omissions but not for his own negligence.

What is the Difference between Host Liquor and Liquor Liability coverage?

Host Liquor Liability Insurance provides protection for the event holder against bodily injury or property damage suits brought by parties whose injuries arise from actions of an intoxicated event guest.  Host Liquor Liability coverage applies only if there is no transfer of money for alcohol or service/product packages that include alcohol. If there is any money changing hands and alcohol is served, Host Liquor Liability coverage does not apply, only Liquor Liability coverage will provide the proper protection. Host liquor liability insurance is included at no additional charge with an AFIG Event Liability Insurance Policy.

Liquor Liability or Dram Shop Coverage provides coverage and defense for an event holder who charges for alcohol and is sued for bodily injury or property damage caused by intoxicated event guests. If there is any money changing hands and alcohol is served, Liquor Liability coverage provides the proper protection. It also provides coverage if the event holder violates any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages. Liquor Liability Insurance is an optional coverage available when purchasing an AFIG Event Liability Insurance.

What is Third Party Property Damage Liability / Care, Custody, Control Liability?

Most liability policies have provisions that exclude coverage for physical damage or loss to property while it is in the care, custody or control of the insured.  Care, Custody, Control Liability (also known as Third Party Property Damage) is an optional coverage that will pay for direct physical damage the the rented premises.

What is Waiver of Subrogation?

Very often, a contract or lease agreement will require one or both parties to waive their rights of subrogation. Subrogation means one party has the right to “step into the shoes” of another party for the purposes of bringing a claim for damages.  Suppose you experience a financial loss due to the negligence of a third party.  Normally you could sue the responsible party for full restitution but if your insurance company pays the claim your insurer is then subrogated to your claim against the negligent party.  In essence, your insurance company has been given your rights of recovery after paying your claim.  Before you sign a contract containing a waiver of subrogation, check with your insurance agent to be sure you are not violating any of the terms of your insurance policy.  If your policy will not permit a waiver, you may be in danger of losing your insurance coverage, leaving you without policy proceeds or a cause of action against the other party.  If the insurance company does permit a waiver of subrogation, it may be necessary to obtain an endorsement to the policy and, in some cases, pay an additional premium.

Event Cancellation Insurance including Non-Appearance

This policy reimburses you for your net loss should the performance or event be necessarily cancelled, postponed or rescheduled due to any peril except what is excluded.

If your event relies on the appearance of a person or group (performer, speaker, player, invited guest, team, etc.), the non-appearance option will protect you from the non-appearance of that individual.

Weather Insurance

Weather Insurance protects against adverse weather conditions that reduces attendance and revenue. It is designed to offset not only the revenue lost due to reduced attendance but other revenue sources such as concessions, food and parking. It can cover perils such as Rain, Snow, Wind and Temperature.  Standard property insurance typically covers income losses only when they result from direct physical damage to insured property by a covered peril. Weather insurance fills a gap by providing coverage when weather causes a loss in income or increase in expenses, but with no attendant physical damage.