Insurance for Event Planners

Professional liability insurance—also commonly referred to as errors and omissions or E&O insurance—provides a number of benefits to event planners, including coverage for personal injury (libel and slander, for example), defense costs, negligence and also claims against past-rendered services. Though claims such as fraudulent acts, bodily injury and property damage usually aren't covered by professional liability insurance, this type of insurance is very important for professionals who regularly provide services or advice to clients.

Consider this example. An event planner is working with a new client to plan their annual customer appreciation event. Just before invitations are due to go out, the client changes the date of the event because the venue is unavailable. The event planner changes the date on the printed invitations but neglects to do so on the electronic invitations. The mistake is not discovered until a few days before the event. The corrected invitation is posted but the client blames the planner for lower-then-expected attendance and sues for lost revenue.

Should a client react negatively to your work as an event planner, accuse you of breaching a confidentiality agreement, or otherwise feel as if they or their business have been damaged in some way by the services you provide, they may choose to sue you or your business. Potential issues can come in a number of different forms, and one way to protect yourself is with professional liability insurance.

There are some scenarios that aren't usually covered under a professional liability policy. Event planners can also benefit from general liability, commonly called commercial general liability (CGL), which covers property damage, claims of bodily injury and associated medical costs.

Here’s an example of how general liability insurance can protect an event planner’s business. A client comes to an event planner’s office, which is in their home, to discuss an upcoming event. As the client is leaving, he or she trips on the steps and fall, injuring their wrist. The planner is liable for the costs associated with the client’s injuries. Because the client was at the planner’s office for business purposes, homeowner’s insurance won’t cover this cost, but general liability insurance for the business will.

In most situations, event planners are asked for general liability to do any kind of work at event venues for weddings, parties, and more. Though your property won't typically be covered under general liability insurance, damage sustained to third-party property will be.

For some event planners, a business owner's policy (BOP) may make sense. A BOP is a combination of general liability and business property insurance typically used to provide coverage to small businesses with the aim of protecting valuable equipment, such as computers and other electronics, trade show booths, and office furniture.

Here’s an example. An event planning company rents space in an office building. One weekend, the building catches fire and the company’s office furniture and computer systems are destroyed. A BOP policy could cover the cost to replace the equipment and get the company back up and running.

Event planners are at risk for a data breach, ransomware attack, or other cyber crime if they use computers, have a website, or collect customer information. Cyber security insurance can protect event planners from the costs associated with a cyber incident, and also offers tools to prevent an attack from happening in the first place. Policyholders have access to an expert breach response team to help mitigate the effects of a breach and get your event planning business back up and running fast.