When the party doesn’t go as planned or must be cancelled at the last minute, event insurance can help make your customers whole by reimbursing them for covered losses. It can also provide peace of mind to you — and your customers.
By Meagan Phillips
As guests were gathering for a private concert in Hollywood, capping an epic 50th birthday party, the event planner broke the unfortunate news. The tour bus had an accident, leaving the event without entertainment and the hosts out thousands of dollars. The frustrated hosts looked to their event planner for guidance.
Scenarios like this are the stuff of event planner nightmares. Despite flawless planning, a single no-show vendor, a hurricane that forces a postponement, or an unfortunate injury can make a soiree-to-remember one that you’d rather forget. With so much invested in the special event, shouldn’t your customers consider protecting their event with insurance.
What is a special event insurance policy?
Special event insurance can reimburse customers for covered expenses related to their private events, such as bar and bat mitzvahs, birthday or anniversary parties, wedding and baby showers, and private holiday parties. Though weddings can be covered by a separate wedding insurance policy, special event insurance can cover other private events leading up to a wedding, such as engagement parties, wedding showers or other celebrations individuals are hosting.
Event insurance coverage can vary, and all policies are not created equal. Working with the Protector Plan® for Events provides peace of mind to your customers in the event of a claim. Unlike other policies, this policy offered by the well-respected carrier Travelers, has no deductible and still offers coverage in California and for destination events elsewhere.
Here are some features of the policy:
- Cancellation/postponement of the event. This provides coverage for contracted expenses in the event of a complete unexpected cancellation or postponement, such as a sudden illness of the honoree. Travelers can insure up to $500,000 in cancellation limits in many states.
- Lost deposits can provide coverage if a contracted vendor goes out of business, declares bankruptcy before the event, or simply fails to show up. The coverage can reimburse the policyholder for lost deposits.
- Additional expense can provide coverage for certain unexpected expenses a host may have to incur to avoid cancellation or postponement of their event, such as finding a last-minute replacement for a caterer that is suddenly unavailable. This coverage can reimburse for the difference in cost up to 25% of the original contract price.
- Event photographs and video can provide coverage in the event the photographer’s film or memory card is defective or photos are lost or damaged. This coverage can reimburse for the cost of reconvening to take new photos or video.
- Event gifts can provide coverage if gifts are damaged and can reimburse repair or replacement costs.
- Special attire can provide coverage if the honoree’s event attire is lost or damaged.
- Special jewelry can provide coverage for loss or damage to jewelry purchased or rented specifically for personal decoration of honorees on the event date, or within seven days prior to the event date.
- Liability insurance is an optional but crucial coverage that can provide coverage for bodily injury, property damage and personal injuries to third parties at the location of the event. Liability insurance is only available for events occurring in the United States and its territories, Canada and Puerto Rico.
- Liquor liability insurance is an optional coverage that can be purchased along with liability insurance and can protect from alcohol-related suits brought as a result of an intoxicated guest who was served alcohol at the event, while at the event location.
How can special events coverage help?
Most private party hosts don’t consider event insurance, despite their considerable investment in the event itself — and the planning it took them to get there. This coverage can protect the client ultimately hosting the event, and additionally, provide the event planner peace of mind. An event policy does not provide coverage for event planners themselves (who should have their own insurance for their business). Only licensed insurance agents are ultimately permitted to solicit and sell event insurance, but it can be well worth doing your due diligence by recommending your clients consider looking into it.
Event coverage can:
- Provide peace of mind — You as the event planner cannot control everything. Event insurance offers your customers financial relief in case of an unexpected event or change of plans. It also helps you as the event planner avoid refunding your contracted payments or straining your budget by shifting to a new date when things go awry. When there’s a claim payout, the check gets written to your insured customers, so you won’t have to be involved in the financial part.
- Make you look good — You likely always go above and beyond for your customers. Another way to do that financially is by advocating for a safety net that will protect them from the unexpected. Clients should speak to a licensed insurance agent to gain a full understanding of insurance coverage and to ultimately purchase their policy.
Learn more about how your customers can protect their private events with the Protector Plan for Events coverage, which offers cancellation coverage and can add on an optional liability insurance.
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Offered through Travelers, the Protector Plan® for Events provides special private event insurance for many celebrations without a deductible. There’s also the option to add liability coverage for the many other things that could go wrong. With the Protector Plan® for Events, your clients can ensure that nearly every risk is covered, giving them peace of mind through the planning process. Learn more and get a quote at www.ProtectMyEvents.com.
The information in this post is general in nature. Any description of coverage is necessarily simplified. Whether a particular loss is covered depends on the specific facts and the provisions, exclusions, and limits of the actual policy. Nothing in this post alters the terms or conditions of any of our policies. Please read the policy for a complete description of coverage. Coverage options, limits, discounts, and deductibles are subject to individuals meeting our underwriting criteria and state availability.
As COVID-19 is a known infectious disease and presents circumstances that may reasonably give rise to cancellation and/or postponement of your event, coverage will not be afforded in any way for such circumstance.