Understanding the Importance of Event Insurance
Private events such as weddings, graduations, birthday parties, or corporate gatherings often become cherished memories. However, with a large number of attendees and expansive venues, the risk of accidents or event cancellations increases. Having insurance coverage for such events can prevent significant financial burdens in case of unforeseen incidents and provide peace of mind while celebrating.
Responsibility Civil Insurance
Responsibility civil insurance is a common type of coverage for various policies, such as car or home fire insurance. For events, this insurance protects the organizer from accidents attributable to event organization.
Luis Gómez, a member of the Mexican Association of Insurance and Surety Agents (AMASFAC), explains that potential accidents in these events can stem from the infrastructure used at event venues, such as templates, platforms, or stages.
“For weddings and graduations, there are risks specific to the locations where events take place that could lead to accidents. These include using templates, platforms, or stages,” Gómez described.
Additionally, some policies offer extra coverage that can be beneficial. For instance, there is coverage for food poisoning or fires caused by pyrotechnics. However, responsibility civil coverage for alcohol consumption has limits; it distinguishes between the organizer’s responsibility and attendees’ personal choices leading to incidents.
According to various insurers, the cost of these policies depends on the amount the organizer wants to insure for the event. A premium is paid, and there’s a monetary limit on what the insurance will cover. Some policies also include deductibles, which may only apply to material damages and not personal injuries. The typical deductible is 10%.
Another crucial aspect of these policies is the provision of legal advice and support during any event-related legal proceedings resulting from significant accidents.
Cancellation Insurance
Facing the possibility of an unsuccessful event and losing the investment made in planning and execution can be highly frustrating. To address this, cancellation insurance is an optimal solution, though it’s rare to find such options in the market.
“Due to the pandemic, insurers have withdrawn event cancellation products from their offerings. Currently, only one insurer provides an event cancellation policy,” Gómez explained, adding that some insurers offer these policies seasonally but later remove them from their product range.
Primero Seguros currently offers an event cancellation insurance policy covering event cancellation or postponement, additional expenses to avoid cancellation, photography and video, attire, gifts, and jewelry used for the event. The coverage amount depends on the client’s chosen insured amount and the type of event, as a wedding’s cancellation risk differs from that of a graduation. The deductible is 10% for any incident.
Key Questions and Answers
- What is responsibility civil insurance for events? It’s a type of coverage that protects event organizers from accidents resulting from their organization, including potential liabilities related to venue infrastructure.
- What additional coverages are available for events? Some policies offer coverage for food poisoning, fires caused by pyrotechnics, and responsibility for alcohol-related incidents, though with specific limits.
- How much does event insurance cost? The cost depends on the amount the organizer wants to insure for the event and may include deductibles, typically 10% for material damages.
- Is cancellation insurance readily available? Due to the pandemic, finding event cancellation insurance has become challenging. Only one insurer currently offers this type of policy.
- What does cancellation insurance cover? It covers event cancellation or postponement, additional expenses to avoid cancellation, photography and video coverage, attire, gifts, jewelry used for the event, with a 10% deductible for any incident.
