Insurance for event planners

Professional liability insurance—also commonly referred to as errors and omissions or E&O insurance—provides a number of benefits to event planners, including coverage for negligence, defense costs, and also claims against services rendered in the past. Though claims such as bodily injury and property damage usually aren't covered by professional liability insurance (you’ll need general liability for those), this type of insurance is very important for professionals who regularly provide services or advice to clients.

Consider this example. An event planner is working with a new client to plan their annual fundraiser. Just before invitations are due to go out, the client changes the date of the event because the venue is unavailable. The event planner changes the date on the printed invitations but neglects to do so on the electronic invitations. The mistake is not discovered until a few days before the event. The corrected invitation is posted but the client blames the planner for lower-then-expected donations and sues for the loss.

Should a client react negatively to your work as an event planner, accuse you of breaching a confidentiality agreement, or otherwise feel as if they or their business has been damaged in some way by the services you provide, they may choose to sue your business. Potential issues can come in a number of different forms, and one way to protect yourself is with professional liability insurance.

There are some scenarios that aren't usually covered under a professional liability policy. Event planners can also benefit from general liability coverage, commonly called commercial general liability (CGL), which covers claims of property damage, claims of bodily injury and some associated medical costs, and claims of personal and advertising injury.

Here’s an example of how general liability insurance can protect an event planner’s business. A client comes to an event planner’s office, which is in their home, to discuss an upcoming event. As the client is leaving, he or she trips on the steps and falls, injuring their wrist. Because the client was at the planner’s office for business purposes, homeowner’s insurance typically won’t cover this cost, but general liability insurance for the business could if the planner is liable.

In most situations, event planners are asked for general liability to do any kind of work at event venues for weddings, parties, and more. Though your property won't typically be covered under general liability insurance, damage sustained to third-party property could be.

For some event planners, a business owner’s policy (BOP) may make sense. A BOP is a combination of general liability and business property insurance typically used to provide coverage to businesses with the aim of protecting valuable equipment, such as computers and other electronics, trade show booths, and office furniture, as well as providing general liability coverage.

Here’s an example. An event planning company rents space in an office building. One weekend, an office in the building catches fire. The event planning company’s space isn’t burned, but water damage destroys some office furniture and computer systems. A BOP policy could cover the cost to replace the furniture and equipment and get the company back up and running.

Event planners are at risk of a data breach, ransomware attack, or other cyber crime if they use computers, have a website, or collect customer information.Cyber insurance can protect event planners from the costs associated with a cyber incident and also offers tools to prevent an attack from happening in the first place. Policyholders have access to an expert breach response team to help mitigate the effects of a breach and get an event planning business back up and running fast.