Nonprofit special events and fundraisers are part of many business's plans for marketing, exposure and commitment to the community. But before your business name goes on the sponsor's sign or you volunteer your time, money or staff, make sure you talk to your insurance agent about a special event insurance policy.
Special event policies can provide coverage for occurrences that event planners might not cover. Examples of incidents that may be insured by a special event policy include:
• Your volunteers' injuries– Unfortunately, volunteers do get injured, and, often, volunteers' injuries are excluded from coverage by the nonprofit's general liability policy.
• Upfront expenses paid– Venues, bands, food vendors/caterers and the like often require upfront payment. If the event gets cancelled for a reason that isn't part of the refund of payment agreement, an organization's attempt to raise money could end up putting them in the red.
• Contractual insurance obligations with vendors– Vendors are often instructed by their own insurance agents to ask for certificates of insurance and “additional insured” language within an event-participation contract. Further, a special insurance policy with specific requirements may be in the vendor/organization contract.
Check with your agent about the events in which your business participates, whether those are annual, newly planned or incidental, and see if special event insurance is right for you.