SOCIAL EVENTS LIABILITY
W
hether it is a child’s
birthday party, your
daughter’s wedding,
or a private function,
most people enjoy
entertaining. Instead of engaging with
family and friends online through
social media, people see these events as
opportunities to be truly social (OK, with
lots of photos taken that will end up
on social media, but you get my point).
Unfortunately, there are personal liabilities
associated with entertaining that you
should consider while you are planning
such an event.
There are some events that you will plan
to hold at your home. Think neighborhood
dinner parties, pool parties, or the
occasional private functions. Other events
may be more substantial and will occur
outside of the home, such as a wedding
reception. These events will likely involve
the renting of an outside venue. In either
case, it is important to consider your
exposure to personal liability and to take
the proper steps to prevent putting your
personal financial assets at risk should a
mishap trigger a lawsuit.
Most homeowners’ policies provide a
minimum amount of liability insurance
that protects homeowners against guests
being injured in their home. Homeowners
should review their policies to determine
how much coverage they have and consider
securing a Personal Umbrella policy. The
cost for a $1 million Personal Umbrella
policy is typically less than $500 annually.
Higher limits of coverage can easily be
purchased to further protect your personal
and financial assets.
As always with insurance, an ounce of
prevention is worth a pound of cure.
Therefore, separate from insurance,
consider loss prevention measures. If you
are serving alcohol at your event, make
sure you are using a licensed bartender.
For larger events, you may even want to
consider hiring security personnel or
parking valets.
Regarding your off-property events, you
may want to also consider a dedicated
Special Events Liability policy. Most outside
venues now require the host to secure
this type of General Liability policy. The
cost for a $1 million policy is typically less
than $300, depending on the number of
attendees at the event.
BEFORE SIGNING
THE CONTRACT TO
RENT AN OUTSIDE
VENUE, HOSTS
SHOULD HAVE
THEIR INSURANCE
AGENT REVIEW
THE VENUE’S
INSURANCE
REQUIREMENTS.
THE SPECIAL
EVENTS POLICY
MAY NEED TO
BE SPECIFICALLY
TAILORED TO
MEET THESE
REQUIREMENTS.
You should also require that subcontractors
such as caterers, bartenders, bands, and
valet parking have their own liability
insurance before hiring them. If any of
these vendors refuses to carry liability
coverage, move on to another vendor that
will.
Entertaining is a great way to spend quality
social time with family and friends. And
with some proper planning before the
event, you can relax knowing that your
personal and financial assets are protected.
So snap-and-post away! +
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