Particularly during the summer months, it is common to host large events, company gatherings and maybe a family reunion or a wedding or two. These events should, most likely, be protected with an insurance policy. We’ve put together a list of FAQ’s for you to determine if your next event should be covered under general liability insurance!
What is Special Event General Liability Insurance?
Special Event Liability Insurance (also referred to as ‘CGL,‘ ‘Commercial General Liability‘ or ‘Spectator Liability‘) is an insurance policy designed to provide broad protection for situations in which an event holder or concessionaire might potentially have to defend itself against lawsuits or pay damages for bodily injury or property damage to third parties. Examples, such as a slip and fall incidents or damaged floors are covered by this type of policy. Exclusions do apply.
Host liquor liability insurance is included if there is no transfer of money for alcohol. This policy also gives protection to the venue and/or sponsors of the event by adding them to the policy as an ‘additional insured.‘
Who is protected under a Special Event General Liability Insurance policy?
The policy protects the person or business/organization under whose name it was purchased (the “Named Insured”). Your facility can also be added as an “Additional Insured.”
My venue has asked for a certificate of insurance with them added as an “Additional Insured.“ What does this mean and how do I add them?
You, the special event host, will most likely be required to provide proof of liability insurance to the facility/venue where you have decided to hold your special event. In addition to providing proof to the facility/venue that you have secured a liability insurance policy (in the form of a piece of paper known as a “Certificate of Insurance“), you may also be required to add the facility/venue to this required liability insurance policy as an insured. This is known as adding the facility/venue as an “Additional Insured“ to the Special Event General Liability insurance policy.
The practice of a facility/venue requiring that all persons or entities renting or using the site name them as an “Additional Insured“ on a General Liability insurance policy is quite common. It is so common, in fact, that the required “Additional Insured“ wording or language is generally contained within the “Insurance Requirement“ section of the Facility Rental Agreement or Facility Use Agreement signed by eventholders.