What if you are hosting a family reunion and an intoxicated cousin causes significant damage to the venue? What if you planned a holiday party for your employees and someone is significantly injured while attending? What if you are throwing a fundraising event for a local politician at your home and several guests experience food poisoning?
While debacles like these don't often happen, they do occur. If you are the one responsible for the event, you may find yourself on the hook for large financial losses unless you are carrying event liability insurance. Talk to an independent insurance agent in Arizona to learn more about this valuable coverage.
What Is Event Liability Insurance?
Event liability insurance (which is sometimes referred to as “special event insurance” or “one-day event insurance”) is a specialized insurance policy that is designed to shield you from liability risks if you are hosting a special event like a banquet or a fundraiser.
Examples of gatherings you may want to cover with event liability insurance include:
- Graduation Parties
- Retirement Parties
- Sporting events
If you are planning a special event, be sure to talk to an independent insurance agent in Arizona for help finding a suitable event insurance policy to protect your financial interests.
Is Liability Insurance Required for Private Events in Arizona?
Prior to hosting your event, you may be wondering if it is mandatory to purchase event liability insurance.
While carrying coverage is not required by law in Arizona, it may be required by the venue where your event is being held. For instance, if you are renting out a banquet hall for a wedding, the hall may require you to purchase event liability insurance for that evening, or the venue may provide its own coverage.
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 Arizona?
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 is expected to last.
- The expected 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.
Regardless of the type of gathering you need to cover, event liability insurance is rather affordable. 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 average about $250.
The only way to find out how much it will cost to cover your particular event is by requesting customized quotes from insurance companies. Local independent agents can save you time by doing the legwork for you.
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What Does Event Liability Insurance Cover?
There are a few different kinds of liability coverage that your event insurance policy can provide.
While general liability insurance will be necessary for any type of event you are hosting, the other coverages listed below is optional and will only be necessary for certain kinds of events.
- General liability insurance: This is designed to cover injuries, property damage, and illnesses your guests may experience while attending your event if you, as the event host, can be deemed responsible due to negligence. 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. This is necessary because Arizona’s dram shop laws state that 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. This would be necessary if you are providing limousine services or shuttles from a parking area to the event venue.
- Garage keepers insurance: This is advisable 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 monsoon or water supply shortage necessitates doing so.
A local independent agent can help you identify any risks your event may present for you and can ensure that you have suitable coverage against each of them.
What Doesn't Event Liability Insurance Cover?
Insurance companies typically exclude certain hazardous activities from their event liability coverage. It is unlikely that your policy will cover injuries related to:
- Illegal activities
- Use of firearms
- Rodeo stunts
- Bungee jumping
- Amusement rides and devices
- Aerial maneuvers
If your event will include hazardous entertainment or activities like those listed above, be sure to talk to your insurance agent for help determining whether any suitable supplemental coverage is available. That way you do not have to worry that you have any unintended gaps in your event coverage.
How to Get the Best Liability Insurance for an Event in Arizona
Finding an ideal policy to cover your special event in Arizona is about more than just cost. The lowest-priced coverage might not be the best choice if it does not provide all the coverage you are looking for.
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 the protection you want at the most affordable price.
There are more than 400 independent agents in Arizona 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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