SPECIAL EVENT INSURANCE PROGRAMS

Special Event Insurance
A Special Event is usually defined as a function of short duration or an function that is not permanently ongoing. A function may last only one day, such as a wedding or a piano recital, or a function may last a month or more such as a county fair or a Christmas tree sales lot. The defining factor is that a function is not set in a permanent location and a function does not continue for an indefinite period of time such as a continuing operation or long term business. There are approximately 350 different types of functions currently defined, with the list constantly under revision and growing.

What is Function Liability Insurance?
Function Liability Insurance is an insurance policy specifically designed to insure the legal liability exposures of a function. This type of function insurance policy is generally termed a Commercial General Liability policy or a Comprehensive Personal Liability policy. Both of these function Liability insurance policies provide civil legal liability coverage for allegations of bodily injury and property damage. This type of function Liability insurance is oftentimes required by the venue, or the location where the function is to take place.

Why does the Venue require Function Liability Insurance?
It is not uncommon for the function venue to require proof of Function Liability Insurance from the function holder. This proof of function Liability Insurance is usually known as a Certificate of Insurance. This Certificate of Insurance is nothing more than a piece of paper showing that the person holding the function has purchased function Liability Insurance with the required liability limit, which is usually $1,000,000. This insurance requirement forced upon the function holder by the venue owner/operator is an insurance risk management technique known as risk transfer, which is a form of loss control. The venue owner/operator desires to push or share as much of the potential liability to the function holder as possible. In many cases, the venue owner/operator will also require that the function holder name the venue as an Additional Insured on this required function Insurance policy. The Additional Insured requirement confers certain insurance protection to the venue owner/operator from the function Insurance policy. The owner of the venue is attempting to shield the venue annual insurance policy by placing the function Insurance policy in front.