Risk & Business Magazine JGS Insurance Magazine Fall 2017 | Page 8

Is Your Special Event Covered?
H
osting events such as concerts,
festivals, conferences, trade
shows, sporting events,
and celebrations subjects
a business to a variety of
liabilities and business risks that must
be considered to avoid costly litigation or
other losses when something goes amiss.
Appropriate coverages for events include
property insurance, special event general
liability insurance, employer’s liability
insurance and cancellation insurance.
PROPERTY INSURANCE
A property insurance policy protects
equipment at events—ranging from
sophisticated audio-visual systems to folding
chairs—whether it is owned, borrowed or
hired for the event. The policy generally
covers property while in transit to and
from the event as well as during the event.
Damaged, destroyed or lost property is
reinstated on a “new-for-old” basis, meaning
that it is generally not appropriate for
things like antiques, collectibles or other
irreplaceable property.
of the required additional insured
endorsement is often included in the
insurance requirement section of the
facility-use agreement signed with the
venue.
•
• Contractual liability is a legal obligation
voluntarily assumed under the terms of
a contract, as distinguished from liability
imposed by the law (legal liability).
• Automobile liability coverage pays for
damages resulting from the ownership,
maintenance or use of a covered auto.
This liability arises whenever you or your
employees lease, hire, rent, or borrow a
vehicle for business reasons. If you do
not normally use vehicles for business
reasons but will be using one for an
event, consider this type of coverage.
• Liquor liability coverage is necessary if
you are charging for alcoholic beverages
at an event, charging a fee to get into
a BYOB event or if a liquor license
is required to distribute alcoholic
beverages. You may be held liable during
the course of an event at which alcoholic
beverages are served for the following
reasons:
SPECIAL EVENT GENERAL LIABILITY
INSURANCE
A special event general liability insurance
policy provides broad protection for
situations in which an event holder or
concessionaire must defend itself against
lawsuits or pay damages for bodily injury
or property damage to third parties. When
alcohol is served without a transfer of money,
the policy can also include host liquor
liability. Limits and premiums vary greatly
depending on the type of event and location.
Here is a list of the types of liability protection
offered by this specialized policy:
•
An additional insured endorsement
to the policy provides protection to
the venue and sponsors of the event.
Commonly, facilities and venues require
that all parties using the site name them
as an additional insured on a general
liability policy. In fact, the wording
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A third-party property damage liability
policy pays for damage, destruction
or loss of property belonging to others
while it is in the care, custody or control
of the policyholder.
•
• Causing or contributing to the
intoxication of a person
• Furnishing alcoholic beverages to a
person under legal drinking age or
under the influence of alcohol
• Violating any statute, ordinance
or regulation relating to the sale,
gift, distribution,or use of alcoholic
beverages.
Workers’ compensation coverage, which
provides for medical, disability or death
benefits to an employee who becomes
BY: DESIREE MESHKI,
VICE PRESIDENT, JGS INSURANCE
ill or who is injured in the workplace, is
required by most state laws. Many times,
those workers you consider independent
contractors are considered employees
under workers’ compensation law.
Therefore, if you hire additional help as
independent contractors for an event,
consider this provision.
•
Employer’s liability insurance,
which is generally a part of workers’
compensation policies, protects
your business against lawsuits due
to employment-related injuries or
illnesses attributed to alleged employer
negligence.
CANCELLATION INSURANCE
Similar to business interruption insurance
in other industries, cancellation insurance
policies are essential to preventing serious
financial consequences in case of an event’s
cancellation. These policies can be useful
even when the event is not entirely cancelled.
The policy generally covers all perils that
are beyond the control of the event’s host,
including inclement weather, a speaker
dropping out, worker strikes or disease
outbreak. Expenditures due to unforeseen
circumstances (such as alternate forms of
transportation to the event during inclement
weather) are generally covered as well.
In some cases, the same policy can cover
multiple events.
Policies are less expensive if they are
purchased far in advance, and premiums
range depending on the time of year, the type
of event and the level of environmental risk in
the surrounding geographic area. +
Desiree Meshki has over 18 years of
experience in the insurance industry. She
started her career with a direct carrier
and is celebrating her 11th year here at
JGS Insurance focusing on Commercial
Insurance Sales. Desiree and her family live
in Millstone, NJ, where they love to spend
time outside.