Special Events Galore
February 2016 / Vol. 16, No. 2
Do You Need Event Insurance?
You’ve spent an entire year planning your annual garden party fundraiser. The venue is decorated, the caterer is booked, the staff is in place and tickets have been sold. Then disaster strikes. Something as common as scattered thunderstorms can bring your party to a halt, leaving guests displaced and your staff wondering how they are going to find an alternate way to generate much-needed revenue. Or a guest might take an unfortunate fall during your event, resulting in a costly lawsuit. Incidences like these prove that event insurance is almost always worth the investment.
“Lawsuits, injuries at events and thefts are all risks that can have a long-lasting impact on a nonprofit chapter or club,” says Christina Carver, marketing director of R.V. Nuccio & Associates Insurance Brokers, Inc. (Toluca Lake, CA). “If a group has the proper insurance, the negative long-term effects can be alleviated.”
While it is impossible for nonprofits to anticipate every potential hazard that could arise during their event, consulting a knowledgeable insurance broker with an understanding of nonprofit and event insurance risks can help solidify whether they have a need for coverage. Carver says it is important to understand the difference between event insurance and nonprofit insurance when determining which option best fits your needs.
“Nonprofit insurance is an annual policy available to nonprofit chapters and clubs that provides coverage for meetings, fundraisers and sponsored events, while special event insurance is a one-time policy specifically designed for the organizers of one-day or short-term special events,” she explains.
Something as minimal as a $50 premium for Directors and Officers Liability can provide necessary coverage, while other types of event insurance may carry a price tag in the $1,000s.
“The best thing an organization can do is to be completely honest about what type of event they are planning — the more information they can provide, the better,” Carver says. “If a facility is requiring to be listed as an additional insured, the planner should have a copy of the facility use agreement as well as a copy of the contract, which typically outlines the insurance requirements.”
When choosing an insurance policy, Carver recommends reading carefully to ensure the needs of the organization are being met and the activities being held are properly covered.
“Be sure to ask which insurance carrier the policy is underwritten by and whether the insurance carrier is admitted,” Carver says. “An admitted insurance carrier has been approved by a state’s insurance department whereas a non-admitted insurance carrier does not necessarily comply with state insurance regulations, and, in the event the insurance company becomes insolvent, there is no guarantee that a claim will be paid.”