Event planning is an exciting career option. If you have strong customer service and organization skills, are creative and have a knack for negotiation, it might be right for you. No two events are the same, which also makes it challenging.
But it’s not all pretty parties and creating fun. Event planners also face a number of risks that are unique to their field of work. Business insurance may be necessary to help you manage these exposures and protect your livelihood.
Let’s take a closer look at why event planners should consider business insurance. We’ll also discuss types of insurance you might consider, including Professional Liability insurance for event planners and other forms of coverage.
Event planners face unique risks
Event planners need to be ready for anything, often at a moment’s notice. It’s your job to anticipate issues, problem solve on the spot, and prevent trouble that could ruin your client’s big day. Even if you do everything possible to ensure that things go to plan, accidents can still happen.
Business insurance can help event planners prepare for the worst—just in case. Different insurance coverages can help you address common risks, such as:
- A mistake in your work causing a financial loss for your client
- Accidentally damaging someone else’s property while you’re working
- Causing injury to a client, guest, or other third party
- Workplace injuries or illnesses suffered by you or your employees
- Costly interruptions to your business
Of course, these are just a few examples of the risks you might face as an event planner. When choosing coverage for your business, it may be helpful to list the potential exposures that you’d like to protect your business against.
What types of insurance do Event Planners need?
As an event planner, you may need several types of coverage to fully protect your business. Event planners commonly consider the below policies:
1. Professional Liability
Sometimes called Errors & Omissions (E&O) insurance, a Professional Liability policy provides coverage against mistakes in your work, breaches of contract, actual or alleged negligence, and other professional errors.
Professional Liability insurance for event planners could help you manage errors that you make while working for a client, as well as unforeseen circumstances that are beyond your control. This might include vendors failing to show, the wrong event date written on important paperwork, or an unhappy bride who feels that it’s your fault that her wedding reception didn’t go off without a hitch.
In cases like these, Professional Liability insurance for event planners could protect you and your business by paying your legal fees, including settlements and judgements, so you don’t have to from your own pocket.
2. General Liability
Commonly referred to as ‘slip and fall’ coverage, a General Liability policy protects businesses against claims of injury or property damage from clients, vendors, or other third parties.
Event planners face many general liability risks in their line of work. You frequently meet with clients in your offices and at event venues, as well as work with vendors and delivery people before, during, and after an event. This presents many opportunities for something to go wrong—like a client tripping and falling over a misplaced box in your office or a staff member knocking over and breaking a stack of plates provided by the caterer.
General Liability insurance protects event planning businesses by providing compensation to the person or business who has made a claim against you.
3. Business Owner’s Policy
Also abbreviated as BOP, a Business Owner’s Policy combines General Liability insurance with other types of coverage that your business may need.
A BOP is a convenient and affordable way to address several risk exposures at once. Your BOP can be customized to include coverages relevant to you as an event planner. This might cover business interruption costs, protection for your business equipment and belongings, non-owned business auto liability, and more.
4. Workers’ Compensation
A Workers’ Compensation policy protects your business against claims and lawsuits arising from workplace injury and serious illness.
You are required to have Workers’ Compensation insurance in many states as soon as you hire your first employee. However, you might consider having a policy even if you work as a sole proprietor. Injuries can happen to anyone during an event, even you! If a broken bone or hospital stay would impact your ability to work and earn a wage, then you may want the protections that Workers’ Compensation can provide.
I work for an event planning company. Do I need my own policies?
The policies held by your employer will likely cover you as their employee. However, your employer’s policies are designed with their interests in mind—not yours. The protection they provide may not be enough, particularly if you are sued as an individual.
Having your own event planning insurance may better shield you against potential lawsuits stemming from your work.
Find Insurance for Event Planners
An event planner’s success depends on their ability to plan for—and sometimes navigate—worst-case scenarios. General Liability, Professional Liability insurance for event planners, and other forms of coverage could help you do this.
BizInsure can help you compare business insurance for event planners in minutes!
