Why One Day Insurance Is Needed
One Day or Special Event insurance is a critical type of liability insurance for certain individuals or for-profit and non for profit organizations which sponsor particular events that are not generally covered under the commercial general liability regardless of the reasons. These causes could range from the fact that a number of event organizers may not be holding any liability insurance at the moment and they need some sort of insurance for a particular activity, or their current liability insurance does not provide enough protection at the remote site where the activities will take place. People can get this special event insurance as a one-time insurance.
Wedding, parties, live shows, sports tournaments, presentations, exhibitions and markets whether done as individuals, organizations, clubs, religious entities, and business entities that promote or host activities that are not included in their General Liability Policy, are usually required to give this insurance when and if requested. Usually, owners of the facility where the function will occur, auditorium, park, city or state authorities will ask from the customer to have them documented as additional insured on all evidences of insurance.
Coverages Under Special Event Insurance. Coverages offered under one day event, or special event, include bodily injuries and property damages for which the insureds become accountable for on or during the event time. Special event coverages may provide commercial general liability coverage, dram shop (liquor liability), and other legal defense for claims of negligence made against the insured, or the persons organizing the function. In the litigious culture of the present days, event managers face possible liability adverse legal actions from individuals attending the activity.
Coverage that comes normally included:
- Each Occurrence – Premises Liability
- Product & Completed Operations
- Personal and Advertising Injury
- Rented Premises, also called Fire Legal
- Medical Payments (optional)
- General Aggregate
Limits on these coverages can vary, but they are normally set at $1,000,000 each occurrence.
Liquor liability, garage keeper liability, or any other liability that is not expressly revealed in the policy will not be covered. To be covered, liquor liability, for instance, should be added to the coverage by an endorsement.
Certificate Holders and Additional Insured: Normally landlords / managers of the site where the event will occur (for example: banquet hall owners, park districts, villages and towns, exhibit organizers, etc.) will want that the event planners provide proof of insurance for the time of the event. People requesting the evidence of insurance need to make sure that in the event of any lawsuit the requesters will have the Special Event coverage comes to the picture and defend them as well.
Things Influencing Rates and Prices
The main factors determining cost of insurance are:
1. Nature of Activities. Providing insurance for an event with athletic or other sport activities will cost more than a different event for wedding, for instance.
2. Length of The Event. A two week event is more expensive than a one day event.
3. Number of Participants. The more individuals involved in the event the more money customers have to pay for this coverage.
4. Consumption of Liquor. If attendants use alcohol in the event then additional coverage will be needed. That extra coverage is called ‘Liquor Liability’ or Dram Shop liability insurance.
Many insurance companies provide online information for one day event. But to get the right quote you might have to speak with an independent insurance broker who can tell you exactly what is needed.