What if you are hosting a wedding for your daughter and an intoxicated guest causes significant damage to the venue? What if you planned a team-building retreat for your employees and someone is significantly injured while attending? What if you are throwing a large party at your home and several guests need to go to the hospital after being sickened by the food that is being served?
While problems like these don't happen often, they do occur. If you are the one responsible for the event, you may find yourself facing large financial losses unless you are carrying event liability insurance. Talk to an independent insurance agent in Alabama to learn more about this insurance.
What Is Event Liability Insurance?
Event liability insurance (sometimes called “special event insurance” or “one-day event insurance”) is a specialized insurance policy that is designed to protect your investment and shield you from liability risks if you are hosting a special event like a banquet.
Examples of things you may want to cover with event liability insurance include:
- Sporting events
When you are planning a special event, be sure to talk to an independent insurance agent in Alabama for help finding a suitable event insurance policy to protect your financial interests.
Is Liability Insurance Required for Private Events in Alabama?
Prior to hosting your event, you may be wondering if it is mandatory to purchase event liability insurance.
While this coverage is not required by law in Alabama, it is likely to be required by the venue in which your event is being held. If you are renting a banquet hall for a high school reunion, the hall may require you to purchase event liability insurance for that evening.
Whether or not it is required, these inexpensive policies can prove invaluable if an unexpected tragedy happens during your event.
How Much Does Liability Insurance Cost for an Event in Alabama?
Costs for event insurance can vary from one event to the next. They are based on factors such as:
- The type of event you are insuring.
- How many hours or days your event will take place over.
- The number of people who will be attending the event.
- The amount of coverage you are purchasing.
- Whether or not alcohol will be served at your event.
All in all, this insurance is relatively inexpensive. To get a general idea of what you might be expected to pay, one-day events average around $175 to insure, while events lasting 10 days cost about $250.
The only way to find out how much it will cost to cover your particular event is to request customized quotes from insurance companies. Local independent agents can save you time by doing this on your behalf.
What Does Event Liability Insurance Cover?
There are a few different kinds of coverage that your event liability insurance can provide. While general liability insurance will be necessary for any type of event, the other coverages are optional depending on what type of event you are throwing and the services it will provide.
- General liability insurance: This is designed to cover injuries, property damage, and illnesses such as food poisoning that your guests may be subjected to while attending your event. It can also cover damage to the venue for which your guests may be responsible.
- Liquor liability insurance: This is designed to protect your financial interests if a guest at your event has too much to drink and goes on to injure someone or destroy property since you, as the event host, can be named in any subsequent liability lawsuits.
- Hired/non-owned auto liability insurance: This is designed to cover any vehicles that may be used by your event, such as if you are providing limousine rides or shuttle services from a parking area to the event venue.
- Garage keepers insurance: This may be necessary if you are providing valet parking services as a feature of your event. It can cover damage to your guests’ vehicles while they are in the parking attendant’s custody, care, or control.
- Cancellation insurance: This is not actually liability insurance, but it may be included as an option in your event liability policy. Cancellation insurance will cover the costs associated with canceling or postponing your event if an unavoidable disaster such as a hurricane or tornado necessitates doing so.
A local independent agent can help you identify any risks your event may expose you to and can ensure that you have suitable coverage against each of them.
What Doesn't Event Liability Insurance Cover?
Insurance companies will often exclude certain hazardous activities from their coverage. It is unlikely that your event liability insurance will cover injuries related to:
- Pyrotechnics, including fireworks
- Firearm use
- Rodeo stunts
- Bungee jumping
- Amusement rides and devices
- Aerial maneuvers
- Certain sports-related injuries
If your event will include hazardous activities like these, be sure to talk to your insurance agent for help determining whether any suitable supplement coverage is available. That way you do not have to worry that your event has any unintentional coverage gaps.
How to Get the Best Liability Insurance for an Event in Alabama
Finding the best policy to cover your event is about more than just price. The lowest-priced coverage might not be the best choice if it does not provide all the coverage you need.
Local independent insurance agents can help you review policies and quotes from a few competing insurance companies so that you can find the policy that offers all the coverage you need at the most affordable price.
There are more than 330 independent agents in Alabama, so it should be easy to find an insurance agent near you to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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