Organizing these events involves substantial effort, and unexpected challenges can arise. This is where event insurance plays a crucial role. Event insurance protects organizers from potential financial losses due to unforeseen circumstances that may disrupt or cancel the event. Festivals, sporting events, weddings, trade shows, and award ceremonies are all exposed to risks like accidents, or sudden cancellations. By opting for event insurance, organizers ensure that they are financially protected from significant losses.
Let’s understand the event insurance better.
Types of Event Insurance
Event insurance covers a wide range of events, from small gatherings to big fat weddings, corporate events and conferences, music festivals and concerts, fairs and carnivals, sports tournaments, and festivals—whether in your society or on a larger scale. It protects you from financial losses due to cancellations or unforeseen disruptions that may impact the event. Event Insurance is a complete package policy which have multiple sections to give complete protection to the event. Event Cancellation section covers losses if an event is cancelled due to unforeseen circumstances like natural disasters, strikes, or riots. Liability section protects against claims for bodily injury or property damage caused during the event. Property section covers damage or loss of event-related property such as equipment, sets, or stage props. Money section safeguards cash and valuables against theft, burglary, or robbery during the event. And, Event Personal Accident section provides compensation for accidental death or disability to crew members
What’s Covered?
Event insurance provides coverage for a variety of risks, including mandatory event cancellation for physical events. It protects against loss or damage to the venue caused by fire, lightning, explosions, or impact damage. It also covers destruction due to subsidence, landslides, earthquakes, and equipment malfunctions, including power and system failures or network interruptions. Additionally, the policy safeguards against damages from riots, strikes, malicious acts, burglary, theft, and weather-related events such as storms, cyclones, hurricanes, floods, and tornadoes. Coverage also extends to damage caused by the impact of vehicles, animals, landslides and much more.
What are Exclusions?
While event insurance covers a wide range of events, there are some that insurance companies typically avoid. These include motorized sporting events like tractor pulls, haunted houses, aircraft or boating events, and hot air balloon events. Activist gatherings such as rallies or protests are also often excluded. It’s essential to review policy exclusions before purchasing to avoid surprises. For example, most wedding insurance won’t cover cancellations due to a change of mind.
How to choose the right coverage?
With Durga Puja and Navratri just around the corner, it’s also the time of year when the marriage season is approaching. However, explaining the right type of coverage can be a bit challenging as it varies depending on the specific event. Let’s explore some examples that connect with the current festive season, where event insurance plays a crucial role.
For instance, when organizing a Durga Puja Pandal, basic coverage like third-party liability insurance is essential to protect against any damages or injuries suffered by attendees. Given the large crowds and personnel involved in these gatherings, one of the biggest is the pandal, where the event organiser spends a huge amount on decorations, which are the major attraction. If the decorations are damaged due to fire or any other perils, the whole event is cancelled. This causes financial loss and affects the emotions attached to this pooja. it’s also highly recommended to opt for accident or personal incapacity insurance, especially in case the artist(s) meets with an accidental death or critical illness. Additionally, organizers can insure the entire event, including cultural props, the Mata Murti, and any jewellery adorning the deity. It’s also important to cover the technical equipment required for the event, such as sound systems, lighting, and other essential facilities. For this reason, policies that protect both equipment and the venue itself against potential damage are commonly included in event insurance plans.
In another example, insuring weddings is also gradually becoming a popular trend, offering protection against various unforeseen situations. Wedding insurance can cover property damage or injuries that happen during the event. One of the biggest threats during weddings is the burglary of bride and groom jewellery with event insurance you are free to enjoy the event since the same is protected in insurance cover. Additionally, wedding cancellation will reimburse you if the event is cancelled due to insured perils which are beyond the control. This could include extreme weather conditions like hurricanes or severe snowstorms, death of the family member, fire at venue etc. These coverages provides peace of mind, knowing that unexpected disruptions won’t lead to significant out-of-pocket expenses.
This example highlights how wedding insurance can protect couples from the financial fallout of unforeseen events like extreme weather or accidental property damage, ensuring their special day isn’t ruined by unexpected costs.
With this, we can say that the trend of insuring events is growing as people recognize the importance of safeguarding themselves from unexpected situations. Event insurance offers peace of mind, allowing organizers and attendees to focus on enjoying the celebrations without worrying about potential risks. Whether it’s a small community gathering or a large festival, having event insurance ensures that the show goes on, no matter what.
( The Article is written by Mr. TA Ramalingam, Chief Technical Officer, Bajaj Allianz General Insurance )
