Event planners' insurance: Why you need it

Why do Event Planners need Liability Insurance?

Every good event planner needs the ability to stay cool in intense-pressure situations when organizing a big function. No matter how much you plan for an event, however, you never know when you will get thrown a last-minute curve ball. But what if that unforeseen glitch results in your company being hit with a legal claim? That’s why you should bring the same attention to detail to protecting your own small business as you do to organizing your clients’ events.

Liability Insurance for Event Planners could be a competitive advantage

Not only does event planners’ insurance help you manage risk and enable your business to grow safely but it can also give your planning business a leg up on your competition. Potential clients often consider insurance a must when hiring an event planner. Everyone understands the high stakes and risk that comes with orchestrating a big event, and when clients see that you’ve prepared for the worst, they’ll feel more confident in your event planning services.

Liability insurance for your small business will allow you to “wow” your clients with outside the box ideas that may have been out of reach without insurance. Knowing you are protected in case of liability will encourage you to display your flare for planning, and help you create a memorable event.

Bottom line, with event planners’ insurance, accidents won’t get in the way of your success. Your peace of mind and financial protection are immediate payoffs after purchasing a policy. Continue to plan the parties of a lifetime and protect yourself with the coverage options we outline below.

Professional Liability Insurance for Event Planners

For example, you’ve been hired to run a big fundraising gala for one of your charity clients. It’s a lavish black-tie affair in your city’s oldest and most exclusive venue: the art museum. Press and VIPs are invited, a celebrity auctioneer has been lined up, and top-quality caterers and a band have been hired. But a mix-up between your office and the venue manager means the museum has mistakenly been booked for the week the event is scheduled to take place.

The charity is very unhappy. This was going to be the set piece event of their fundraising calendar and it was one of the few dates when all their biggest donors would be available. They were traveling from far and wide and many had flights and hotel accommodation already booked. The irate director of the charity calls you to tell you that the charity’s board blames you and wants redress. A week later an attorney’s letter arrives from the charity, suing you for negligence.

Even the best event planner would be forgiven for freaking out in this situation. Your company is being dragged through the courts by one of your most prestigious clients, and your company’s hard-won reputation is now hanging by a thread. In this type of situation or in the event you are sued for negligently performing your services, even if you haven't made a mistake, professional liability insurance is a key tool all event planners should have to ensure their businesses are protected. 

General Liability Insurance for Event Planners

Every event planner also needs general liability insurance. Just in case an exhibitor at a trade show you’re organizing is injured when they trip over a toolbox left by one of your contractors. What if the exhibitor is left with a broken wrist, which they claim was your fault, because you did not ensure the walkways were kept clear? In that case, your general liability policy could help pay the person’s claim for bodily injury and related medical costs.

Why do Event Planners choose Hiscox?

Every event planner knows that when organizing a function they should hope for the best, but prepare for the worst. That’s exactly what you need to do for your own business by making sure you get the right event planner insurance protection so an unexpected problem doesn’t wreck all the best-laid plans you’ve made for your own company.

This post was originally published in 2013, and was updated on 8/6/2018 to provide additional information on the competitive advantages of event planning insurance.