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Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for an event planner.

Event Planners Need Business Insurance

This article will discuss the primary insurance coverage for event planners, general liability insurance, as well as additional products that are appropriate for this industry.

Event Planners Need General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.

Common Situations That An Event Planner’s General Liability Insurance May Cover

Example 1: A client walks into your office and notices a spot of ice outside the door. He trips and falls, breaking his arm. He files a lawsuit against your company, blaming you for his injuries. When defending yourself against such a case, your general liability insurance coverage will cover your legal bills. If you settle out of court, your insurance will cover the cost of the settlement as well.

Example 2: One of your staff is carrying foldable tables from one section of your facility to another using a hand cart. In his rush, he misses a prospective customer visiting your establishment and strikes her with the hand cart. She trips and falls, sustaining severe injuries. Her therapy would most likely be covered by your general liability insurance coverage.

Example 3: You are pleased with your new company logo and begin using it in all advertising materials. Unfortunately, one of your rivals believes that the new logo is too close to his own and brings a lawsuit against your company as a result. Because you have general liability insurance, your legal defence bills and any settlement costs would be reimbursed by your insurer in this circumstance.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

The typical event planner in the United States pays between $500 and $1,100 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Event Planners

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that every event planners should get are as follows:

Insurance for Professional Liability

Professional liability insurance, also known as omissions and errors insurance, is designed to your specific company to protect you against negligence claims resulting from mistakes or failure to perform. Despite your best efforts to design events that match or even surpass your customers’ expectations, things do not always happen as planned. If a customer sues your company because of a mistake, your professional liability insurance will cover your legal bills as well as the cost of a settlement if one is required.

Insurance for Commercial Vehicles

Any car that is mainly used for business requires commercial auto insurance. The car you use to move from client to client and event to event should be insured in order to comply with your state’s commercial vehicle regulation. If you or your workers are involved in a car accident, this policy will protect you. If you or an employee causes an accident, the coverage will assist in paying for car repairs or replacement, as well as any damage caused by your vehicle to other vehicles. It will also cover medical expenses for those who have been hurt.

Coverage Options for Some Event Planners

In addition to the insurance listed above, your event planning firm may need other forms of coverage based on particular parts of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Workers’ Compensation

Workers’ compensation insurance is required in most states for firms with employees. If your employees are harmed while doing work-related responsibilities, your workers’ compensation insurance will compensate them. For example, if an employee is transporting folding tables to an event and has a back injury, she may seek medical attention under workers’ compensation. If she is unable to work, workers’ compensation insurance will reimburse her missed salary while she recovers.

Umbrella Insurance for Businesses

Your general liability insurance coverage provides a solid basis for protecting your company, but there are times when your policy limits may be surpassed. For example, if your firm is sued and you lose, the damages you must pay may exceed your coverage limitations. If you have business umbrella insurance, it will take over where your general liability coverage ends off.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.