The Effect of Deductibles on Special Event Liability

Direct Event Insurance • October 3, 2019

When shopping online for Special Event Liability Insurance, you’ll find no shortage of websites run by automated systems, offering you millions of dollars’ worth of coverage for you event, for premiums so low that you can’t help but get suspicious.


Well as we all know, when something SOUNDS too good to be true – it often, IS too good to be true.


Now, that’s not to say that those companies aren’t legitimate. On the contrary, the vast majority of professionals in the insurance industry are entirely ethical – but when you’re operating online and dealing with consumers that aren’t well-versed in any particular type of niche coverage, an automated system isn’t always the best interface to serve their needs while providing the assurance that buying insurance has traditionally provided.


Accessibility to actual human oversight throughout the application process and being able to ask questions about the quote prior to binding coverage, is a significant value because when the average consumer is faced with an unfamiliar task such as obtaining Special Event Liability insurance for an upcoming event, it is important that they are able to fully understand every aspect of their coverage, including why the cheapest policy isn’t always the best.


With so many expenditures associated with event planning, it’s easily understandable that many who are seeking special event liability insurance coverage can be easily lured into a binding situation, because of an enticingly low premium – completely unaware of the potential pitfalls associated with the coverage.


While you may find policies online with premiums of $100 or less, those will more often than not, come with deductibles ranging from $1000to $2500. Deductibles are traditionally a great way of managing premium levels by means of sharing the risk but when you’re dealing with premiums that are only a couple of hundred dollars, a $1,000 deductible can seem more like a trap than a useful tool.


With those policies, you would pay your premium amount and then, if there is a General Liability claim you would also have to pay that deductible amount in order for your claim to be honored. However, in many cases, the damages are less than the deductible amount and so the Insured has to pay them out of pocket.


Consider for instance, a scenario wherein you are required to obtain Special Event Liability coverage with industry-standard limits of$1m/$2m, for an upcoming event: You quickly find that this coverage can be acquired from an online website, for under $100. Sounds great, right?


Upon completion of your due diligence, you realize that this coverage comes with a $1,000 deductible. You decide to bind this coverage anyway because most of the other quotes you got all seem to have this same deductible, and the one that doesn’t have a deductible is almost twice as expensive, at$200.


After the event, the venue manager notifies you of damages to the facility that amount to $850.


You are now faced with the hard reality that you will now have to pay this cost out of your own pocket because of your policy’s $1,000deductible – since it wouldn’t make any sense at all, for you to pay $1,000just so the Carrier will cover your $850 loss!


You will have learned the hard way, that it would have been much wiser and more cost-effective to have paid the additional $100 to bind the$200 policy, and avoided that $1,000 deductible altogether.

Business Celebration

The Importance of the Additional Insured Designation

By Direct Event Insurance • March 16, 2023
When organizing an event, it's crucial to consider all potential risks and liabilities that could occur during the course of the event. Even with the most meticulous planning and preparation, accidents can happen, and these accidents can lead to significant financial damages or even legal action. Liability insurance coverage is essential for any event, but it's important to understand that not all types of liability are covered under a standard policy. There are many things that could go wrong at an event that would be excluded from liability coverage, and it's essential to have Special Event Liability coverage to protect against these risks. One of the most significant risks at an event is bodily injury. This could occur in a variety of ways, from slips and falls to more serious accidents. If someone is injured at the event, the organizer could be held liable for medical expenses, lost wages, and other damages. Without Special Event Liability coverage, these costs could be significant. Property damage is another potential liability at an event. For example, if a vendor's equipment damages the venue, the organizer could be held responsible for repairs. Special Event Liability coverage can help to cover these costs, ensuring that the event is not financially ruined by unforeseen damages. In addition to bodily injury and property damage, there are other potential liabilities that could occur at an event. For example, if a vendor's product causes harm to a consumer, the organizer could be held liable. Special Event Liability coverage can help to cover the costs of any legal action that may arise in such situations. Another potential liability at an event is alcohol-related incidents. If alcohol is being served at the event, the organizer could be held liable for any accidents or injuries that occur as a result. Special Event Liability coverage can help to cover the costs of any legal action that may arise in such situations. It's important to note that liability insurance policies typically do not cover intentional acts of wrongdoing. If an event attendee intentionally causes harm to someone else, the organizer may not be protected by liability coverage. It's essential to have Special Event Liability coverage to protect against these risks. Naming the venue as an additional insured on the Special Event Liability policy is also important. This ensures that the venue is protected against any potential liabilities that could arise during the event. Without this protection, the venue could be held liable for damages, even if they were not directly involved in the incident. Similarly, each vendor, exhibitor, and subcontractor should have their own respective Special Event Liability policies that name the event's organizer as an additional insured. This ensures that each vendor is responsible for their own liability and protects the organizer from any potential damages that may arise from the vendor's activities. In conclusion, organizing an event comes with a significant amount of risk and potential liabilities. Liability insurance coverage is essential, but it's important to have Special Event Liability coverage to protect against the specific risks that could arise during the event. Naming the venue and each vendor as additional insured is also crucial to ensure that all parties are protected against potential damages. By taking these steps, event organizers can minimize their risks and ensure that their event is a success.
Insurance Agent Handing Out a Document to Client

What is the Most Accurate Form of Claim Verification for a Weather Insurance Policy? And Why?

By Direct Event Insurance • March 16, 2023
Because the closest Airport can be miles away, and because the onsite observers are typically expensive, the most accurate form of easily available claim verification for a weather insurance policy is through the use of certified weather data from a third-party weather monitoring service. This is because it provides an objective and independent verification of the weather conditions that occurred during the policy period. Weather insurance policies are designed to protect businesses and individuals against financial losses that are directly caused by adverse weather conditions, such as rain, snow, wind, or temperature changes. These policies typically have specific criteria that must be met in order for a claim to be paid out, such as the amount of rainfall, wind speed, or temperature range that must be met. Using certified weather data from a third-party weather monitoring service provides the most accurate form of claim verification for a weather insurance policy because it provides an objective and independent verification of the weather conditions that occurred during the policy period. This type of data is collected by professional meteorologists using specialized equipment and techniques, and is widely recognized as the industry standard for weather verification. Often accessible via an app on your smartphone, certified weather data is also reliable and verifiable, which makes it easier for insurers to evaluate and process claims. Insurers can compare the weather data provided by the third-party monitoring service with the policy criteria to determine whether a claim is valid and should be paid out. Additionally, using certified weather data helps to reduce the potential for fraudulent claims. Because the data is collected and verified by a third-party, it is less likely to be manipulated or falsified by policyholders who may try to file a false claim. In summary, certified weather data from a third-party weather monitoring service is the most accurate form of claim verification for a weather insurance policy. It provides an objective and independent verification of the weather conditions that occurred during the policy period, is reliable and verifiable, and helps to reduce the potential for fraudulent claims. By using this type of data, insurers can accurately evaluate and process claims, and policyholders can have confidence that their claims will be fairly and accurately evaluated.
Buffet Table With Plates, Glasses of Champagne and Desserts

The Pitfalls of Buying Special Event Coverage From an Automated System, With No Human Oversight

By Direct Event Insurance • March 16, 2023
Automated insurance systems, also known as insurtech, have become increasingly popular in recent years due to their convenience and accessibility. However, there are several potential pitfalls and disadvantages of buying insurance from an automated system with no human oversight. Here are some of the main concerns: Limited customization : Automated insurance systems typically offer a limited range of policy options, with little flexibility for customization. This means that customers may not be able to tailor their coverage to meet their specific needs, and may end up paying for coverage they don't need or missing out on important coverage that is not offered. Lack of personal touch : Without human oversight, automated insurance systems may lack the personal touch that many customers value. Customers may not be able to speak with a live agent or get personalized advice and support, which can be particularly challenging for complex or specialized insurance needs. Inaccurate or incomplete information : Automated insurance systems rely on algorithms and data inputs to generate policy quotes, which may not always be accurate or complete. Customers may not have the opportunity to ask questions or provide additional information that could impact their coverage or premiums. Limited customer support : Automated insurance systems may not offer robust customer support, particularly outside of regular business hours. Customers may have trouble getting the help they need in the event of a claim or other issue. Limited transparency : Automated insurance systems may not always be transparent about their pricing, coverage options, or terms and conditions. Customers may not fully understand what they are getting into when they purchase coverage, which can lead to confusion or dissatisfaction down the road. In summary, while automated insurance systems offer convenience and accessibility, they may not be the best choice for all customers. Customers who have complex or specialized insurance needs may benefit from the personalized advice and support of a live agent, and may want to consider more traditional insurance options. Additionally, customers should be aware of the potential pitfalls and disadvantages of automated insurance systems and carefully evaluate their options before making a purchase.
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