Why Do I Need Special Event Liability Insurance?

Direct Event Insurance • October 20, 2020

So you’re holding an event and the venue wants you to get Insurance… And they want to be named on the Policy… “What does this even mean?” you are probably asking yourself.


Well, that’s why I’m writing this little article, so that you can fully understand what is being required of you.


People have been renting places to hold their events as longas there have been places to rent, so why are you suddenly being required to get insurance for yours? There are several reasons, but one is simply that the Venues have been holding events at their facilities long enough now, to have experienced losses that caused their own insurance to increase.


Whether from a slip and fall or from someone damaging a floor while setting up a table, over time, this starts to cut into their overhead, so they may have had to increase their rates, in order to compensate for the increase in their own annual premiums. This makes it more expensive for event organizers to hold their events, and cuts into their profit margins as well, so you can see how costs from losses caused by claims filed against the venues’ insurance policies can snowball, affecting the prices of everything across the board in the industry.


They realized that the current model was unsustainable so anew product was created by the Insurance providers: Special Event Liability.


Like any other Liability Policy, Special Event Liability(SEL) insurance will cover damages caused by the negligence of the named Insured on the Policy. This particular type of Liability coverage has been crafted to specifically fit the needs of Event Organizers, based on research across the nation, that has determined what the most common perils are, associated with Special Events.


Thanks to this industry innovation, Venue owners can now maintain their own Insurance but avoid being held liable for the exposures associated with their various clients’ events.


How does it work? The policy is written to accompany a rental contract between the Event Organizer and the Venue Owner. The Event Organizer is the Insured and the name that appears on the rental agreement or contract, should match the name that appears on the SEL Insurance Policy.


The contract will require the Event Organizer (The Insured)to name the Venue Owner on their SEL Policy, as “Additional Insured” for the duration of the event. This allows that the Liability Policy will extend the coverage, for the designated period, to the Venue, who is then issued a copy of the Certificate of Insurance, on which they are now a designated Certificate Holder and Additional Insured.


While annual policies are sometimes available, these policies are typically written on a single-event basis, and most people rarely need this kind of insurance, so there is little risk of premium increases, unless of course, a particular insured is in the business of holding events – and if that is the case, they can and should, work in conjunctions with industry experts, to ensure that they coordinate their events in a responsible manner that helps to reduce the chance of multiple claims, which could make it more expensive and/or difficult to get coverage for their future events.


Because these SEL Policies are ultimately, Liability policies, they will not cover any damages not caused by the Insured. So Vendors, Exhibitors, and Subcontractors (such as Caterers, Security Firms, Stage and/or Lighting companies), are all required to have their own insurance in place, naming the Organizer as Additional Insured, for the duration of the event.


In the case of Caterers/Vendors/Exhibitors, policies have been crafted to suit their needs as well. The coverage is limited to their booth space and as already mentioned, they should ALWAYS name the Event Organizers, and if required, the Venue owners, as Additional Insured.


Arranging this properly ensures that everyone is covered by their own Liability Policy, for their own negligence and helps to prevent any gaps in the coverage for which the Event Organizer might otherwise be found liable.

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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