So You Want to Be In the Event Hosting Business? What about Insurance?
Whether you're starting out by offering your space to friends and family for small events or running an event center that hosts multiple events a day, here are a few tips to make sure you and your clients are protected.
Start by working with a local insurance agent to make sure you have the correct insurance protection for your property. A standard homeowner's policy won't cut it. And generally those policies include an exclusion for all business pursuits. So when your lawn gets damaged by the truck unloading chairs and tables for tomorrow’s baby shower, your homeowners will deny the claim.
In working with a local insurance agent, provide them with all of the details of your business. Depending on the operation, you may need worker's compensation, employer liability and commercial auto insurance just to name a few. If you choose to provide a bar for your renters, you will also need proper liquor licensing and insurance even if your bartenders will be pouring the alcohol for free.
Your local insurance agent can also help you determine the type of insurance you need to require from your renters and any vendors, contractors or service providers. They will also advise on the proper limits and any additional endorsements they suggest. These policies will help cover a claim caused by a client or one of their vendors/contractor.s But, they are not designed to cover claims where you, the venue, are legally liable.
Be sure to confirm that each vendor providing services and coming on to your property has insurance. Yes, being the insurance police is never fun…..but it is well worth the effort to avoid costly repairs that aren't covered by your client’s own insurance policy. Any business owner will be responsible for their own actions. If a DJ at a wedding causes damage by dragging their equipment across the floor, then the DJ is legally liable and only insurance coverage with the DJ as the insured will cover the cost to replace/repair the flooring.
Take the time to assess the risks at your venue. If you have old stairs that break during a wedding causing an injury, no wedding insurance policy will cover that. You'll have to file that claim on your own business policy since you'll be the one legally liable. Walk around and see if there are tripping hazards. Are steps clearly visible? Are all pathways well lit?
The more questions you ask about insurance policies and what they intend to cover, the better prepared you'll be. Requiring event insurance from your clients and their corresponding vendors is essential to cover most event-related claims and to give you the peace of mind you deserve.
