Beware the "Too Good to be True" Premium - There's Probably a Large Deductible!

Choosing a lower premium for event insurance simply because it is cheaper can be unwise for a few reasons. While a lower premium may seem more affordable upfront, it may end up costing more in the long run if a claim is filed. Here are a few reasons why:

  1. Lower Limits of Liability: Cheaper insurance policies may have lower limits of liability, which is the maximum amount the insurance company will pay out for damages or injuries. In the event of a claim, you may be responsible for paying any damages or injuries that exceed the policy limits. It is important to choose an insurance policy with appropriate limits of liability that match the size and nature of your event.
  2. Higher Deductibles: Cheaper insurance policies may have higher deductibles, which is the amount you are responsible for paying before your insurance coverage kicks in. Higher deductibles may mean that you will have to pay more out-of-pocket in the event of a claim.
  3. Limited Coverage: Cheaper insurance policies may have limited coverage, which means that certain types of damages or injuries may not be covered. It is important to read your policy carefully and understand what is covered and what is not.

Special Event Liability policies with $1000 General Liability deductibles can also be more expensive in the event of a claim. While these policies may have lower premiums upfront, the $1000 deductible means that you will be responsible for paying the first $1000 of any damages or injuries before your insurance coverage kicks in. This can add up quickly if there are multiple claims or if the damages or injuries are significant.

In general, it is important to choose an event insurance policy that provides appropriate coverage and limits of liability for your event, even if it means paying a higher premium upfront. Doing so can help protect you from financial loss in the event of a claim and provide peace of mind for you and your attendees. It is always a good idea to speak with an experienced insurance agent like David Carbrey at Direct Event Insurance Brokerage, LLC., to determine the best policy for your needs and budget.