Commercial general liability policies are great!
However, your general liability policy does not always have coverage for special events such as one-off fund-raising and outreach events. In the not-for-profit insurance world that can mean many large exposures throughout the course of the year.
Sue a Not-For-Profit… How Dare You?!
Believe it or not when bad things happen and property gets destroyed or people get hurt or worse yet, someone’s feelings get hurt, lawsuits fly and lawsuits don’t care that your organization has a philanthropic mission.
The general rule of thumb for our modern society seems to be Sue Everyone and Let the Lawyers Sort It Out…
So don’t count on your charitable-ness meaning a whole lot in the event of an accident, instead protect your organization with a Special Events Insurance Policy.
What Is a Special Events Policy?
I’m glad you asked. A special events insurance policy provides liability insurance for luncheons, annual meetings, receptions, walk-a-thons, golf tournaments, seminars, celebrity beauty pageants, auctions, belching contests, jump-rope-a-thons, adult proms, or whatever else you can think of to raise money (within reason).
Isn’t That What My General Liability Is For?
No, your general liability insurance is designed to cover your day-to-day risks of running your organization. When you purchased your general liability policy your Independent Insurance Agent thoroughly questioned you on your daily operations and crafted coverage to meet those needs.
Events which are held infrequently and draw large numbers of individuals from outside the organization are not considered part of your daily operations. These events are exactly why special events insurance policies were created.
Do not fret, the expense for special events insurance policies is usually very low relative to the exposure the carrier is taking on.
Most carriers will work with you to add coverages such as liquor liability as needed.
Does your organization need to pay for liquor liability every day?
No, probably not.
But you better be darn sure you have a special events insurance policy with liquor liability protection for your Margarita Mania Summer Fund-raising Egg Toss…
The Rub
I know that not-for-profit organizations need to watch every expense and buying an additional insurance policy to cover these special events feels like just more cost.
However, if you are holding a fund-raiser without a special events insurance policy your next expense could be defense lawyer fees, and that is a burden that could sink your organization.
If you have questions about special events insurance or if you would like to receive a quote for special events insurance please give us a call at (518) 456-6688 or you can click here to contact us via email.