Imagine this scenario. A nonprofit organization hosts its first gala fundraiser with 250 people. Nearly half of the attendees suffer food poisoning from the seafood bar at the event; some are hospitalized.
Accidents happen, particularly when large crowds are involved. From a participant who gets injured during a race to a falling piece of equipment at a festival, a nonprofit could be held liable for medical bills, lost wages, and more. Having the right coverage in place before such an incident can go a long way in protecting your nonprofit client, their services and overall mission.
Fundraising events are typical among nonprofits – from 5k runs and concerts to galas and rallies. Despite their good work and mission at hand, these organizations could put themselves at significant risk without the right coverage in place. Unfortunately, too many organizations are unaware that existing liability insurance won’t protect them against the unique and unpredictable risks of a special event.
Some standard general liability policies might exclude or limit coverage for your nonprofit events, especially if large groups, high-risk activities, or alcohol is involved. If an insurer is unwilling to underwrite and schedule the event onto the policy, your nonprofit client will need a separate event liability policy.
Special events insurance protects non-profits from the risks of liabilities of a lawsuit in the event the organization is sued for property damage or bodily injury. Event insurance can also help cover your costs if you unexpectedly need to cancel your event or if you’re found responsible for property damage or an injury caused during your event. And remember, event cancellation always requires a standalone policy to protect your client against loss of revenue or commitment of expenses if the event is cancelled or postponed.
Policies will vary in cost depending upon several factors, including the type of event, the duration of the event, the unique risks associated with the event, the number of anticipated attendees at the event and even the age group of attendees. Nonprofits who host frequent events throughout the year should consider a long-term special event insurance policy vs. singular coverage for one event.
The best way to prepare for a special event is to start planning early. As a leading MGA specializing in nonprofits and human services organizations, Convelo Insurance Group can assess the market, consider the coverage options available to your client and customize a plan that will protect them in the event of a claim or loss.
Contact us to learn more about our special event coverage and protection today.