What is Event Insurance?

The average American wedding cost $29,000 in 2023. But what happens if you have to cancel or change plans?

In recent years, everyone has become accustomed to events getting canceled. While the global pandemic has faded into the background, natural disasters, extreme weather and other events beyond your control have not. You could choose to insure any event that requires a large significant investment, from weddings to major anniversary parties, baby showers or company events. 

What is event insurance? Like health insurance, auto insurance or other insurance policy, it's designed to cover stated perils related to your event. Event insurance won't cover getting cold feet before walking down the aisle, but it will cover most of what could go wrong beyond your control, from snowstorm delays to fires started by guests. 

Below, you'll find a breakdown of the types of event insurance and the coverage you can expect. 

Understanding Event Insurance

Special event insurance is a policy that helps protect the significant financial investment in a special event, such as a wedding, anniversary, quinceañera or other event. If you have to cancel the event or your party is responsible for property damage or injury during the event, event insurance may help cover your costs.

Event insurance is most commonly associated with weddings, but coverage can also be purchased for other special celebrations that require a significant financial undertaking.

What Does Event Insurance Cover?

Like most insurance policies, the type of event covered depends on the policy's stated coverage, limitations and total limits. However, the two main types of coverage for event insurance are cancellation and liability. Some insurers may also offer gifts and attire insurance. Here's how each of these works. 

Event Cancellation Coverage 

Event cancellation coverage rose to prominence during the pandemic. Event cancellation coverage will typically reimburse you for non-refundable deposits and other fees associated with canceling or postponing the event for a reason beyond your control. Policies will have a stated coverage limit and may have deductibles. 

For example, the event cancellation coverage may cover up to $30,000, with a $1,000 deductible. Be sure to check the coverage limit and deductibles to ensure you have adequate coverage for the event. 

Event Liability Coverage 

If a guest accidentally starts a fire, floods a wood floor or otherwise causes damage to the property or hosts, event liability coverage should cover your liability minus any deductible. 

If you are holding the event at a park or museum, the venues may require some form of liability insurance to rent the property. Event liability coverage protects you if you’re liable for injury or property damage. Liability insurance can pay for damage to the venue or injury to the guests or hosts.

Some event liability insurance also includes host liquor liability for alcohol-related incidents that lead to your liability as the host. Certain venues require liquor liability coverage to use its facilities. 

Gifts and Attire

Gifts and attire are an optional offer from some insurers. In general, honeymoon costs, special attire and gifts aren't covered by cancellation coverage or liability coverage. However, some insurers allow you to add an additional gift and attire rider to cover wedding dresses, gifts, tuxedos and other items damaged before, during, or after the event. 

What Types of Events Are Covered? 

While weddings are the most common reasons individuals may consider event insurance, there are many other reasons to get event insurance, including:

• Weddings
• Reunions
• Bar/Bat Mitzvahs
• Graduation parties
• Religious celebrations
• Birthday parties
• Baby showers
• Quinceaeras
• Fundraisers
• Carnivals 
• Exhibitions

What Types of Events Are Not Covered?

The types of events not covered include:

• Activist events, such as political marches, rallies or protests
• Motorized sporting events, such as tractor pulls or classic car events 
• Haunted houses
• Aircraft or boating events
• Hot air balloon events

In addition, many policies have exclusions. You'll want to check all policy exclusions before choosing a provider. Even with standard event cancellation coverage, you could be surprised later if you have a problem that’s not covered. For example, most wedding insurance won’t cover a change of mind or delays based on hesitation.

Many policies only offer cancellation coverage for you or your immediate family. The policy might not reimburse you for deposits made by friends or other people. And like most insurance, if you have to make a claim, you’ll need receipts to prove the amounts you claim.

While less common, after the COVID-19 pandemic, some insurers excluded coverage because of infectious diseases. Since exclusions can impact your event in various ways, you'll want to read the insurance policy to see what’s covered. 

Do You Need Event Insurance?

Whether you need event insurance depends on the venue and financial obligations. Some venues require certain types of coverage. In addition, the total event costs and non-refundable deposits can affect your decision to get event insurance. 

Event insurance is worth considering if the event requires a significant financial obligation. This is especially true if losing the deposits would cause significant loss or financial hardship. Most vendors don’t offer refunds for cancellations or postponements, so event insurance can also give you peace of mind.

Liability coverage can give you additional protection, especially if you're holding the event in a public venue. Venues may require you to have some form of liability coverage in case of property damage or injuries. However, other vendors have their own liability insurance, so you don’t need to purchase an additional plan.

If the event is at your home, your homeowner's insurance may include liability coverage for damage and injuries. However, it won't cover lost deposits or vendor cancellation fees. 

In summary, you might need event insurance if:

• The vendor requires it.
• The event requires a significant financial commitment.
• You want peace of mind related to lost fees and deposits.
• You want to protect yourself from liability in case unexpected situations arise.

When to Buy Event Insurance?

In some cases, you can buy event insurance up to two years before the event. But if you didn't plan that far ahead, some insurers will allow you to purchase event insurance the day before the event. In general, the best time to buy event insurance is as soon as you begin to pay deposits.

How Much Does Event Insurance Cost?

Like most insurance policies, event insurance premiums vary based on factors such as coverage amount, coverage type and event type and location. Several insurance providers offer event cancellation insurance for as little as $105 to $130. 

Liability coverage for an event with 40 attendees starts at around $66. However, the number of guests, length of the event and amount of coverage can all affect the final costs. 

How to Get Insurance for an Event

To get insurance for an event, you can research insurers to compare rates for your event, coverage amount, type of coverage and limitations. You can choose liability, cancellation coverage or both, and many insurers let you add on gift and attire coverage. You can compare rates online or consider working with an insurance broker. 

A few major insurers include:

• K&K Insurance
• Markel
• Travelers
• West Bend Mutual
• WedSafe
• Wedsure

Find the Best Event Insurance from Benzinga’s Top Providers

Benzinga's top insurance providers can help you create a comprehensive package to protect your event. Compare the best rates here. 

Final Tips on Event Insurance

Although event insurance may not always make sense, it can be a lifesaver for some events. A backyard graduation party, for example, rarely requires the financial investment or deposits that make event insurance so valuable. But when you're hosting major events, from fundraisers to weddings to quinceaeras that require months or years of planning and major expenses, event insurance can be a lifeline. While no one wants a cancellation or mishap, if they happen, knowing you're covered can protect your peace of mind, and your bank balance. For some events, you might also consider general liability insurance. 

Frequently Asked Questions