Exploring Event Insurance: A Smart Choice for Every Occasion

By Aditya Sharma, Chief Distribution Officer – Retail Sales, Bajaj Allianz General Insurance

In a country as diverse and vibrant as India, festivals and events are more than just gatherings. From grand weddings to corporate extravaganzas, India hosts millions of events each year. Over 10 million weddings occur in India annually, with some estimates suggesting that a typical Indian family spends up to one-fifth of its wealth on weddings. But amidst the excitement, have you considered what could go wrong? That’s where Event Insurance becomes your safety net, ensuring your celebration stays on track, no matter what.

In this article, we will explore the importance of Event Insurance, its key features, the types of coverage available, and how it protects against unforeseen risks such as cancellations, weather disruptions, accidents, and vendor issues.

Let us begin by understanding what event insurance is.

Event Insurance is a specialised insurance policy designed to cover the risks of organising and hosting events. It provides financial protection against various potential issues that could disrupt your plans, such as cancellations, property damage, or even legal liabilities. Investing in Event Insurance ensures that the show goes on and that the festival’s spirit shines brighter than ever.

What is the major Coverage available under Event Insurance?

 

1. 1. Event Cancellation Cover – Event Cancellation reimburses costs if an event is cancelled or postponed due to unforeseen circumstances/insured perils, such as extreme weather. For example, imagine a music festival scheduled at an outdoor venue, but a severe storm is forecasted on the day of the event, making it unsafe for attendees. The festival organisers decided to cancel the event for safety reasons. In this case, cancellation insurance would reimburse the organisers for costs like venue fees, equipment rentals, and marketing expenses that had already been incurred, reducing their financial losses by covering non-refundable expenses caused by unforeseen weather conditions. This cover may also be taken for Virtual Events.  (*Policy Terms & Conditions apply).

1. 1. Public Liability Coverage: This protects the event organisers from third-party claims for bodily injury or property damage caused during the event. For example, imagine a speaker’s podium or a lighting rig falling on an attendee during the event, causing injury. The injured party may sue the event organizer for medical costs or damages. However, if Event insurance is purchased, the costs of medical expenses, legal fees, and any potential settlement or compensation may be awarded to the injured party.

1. 1. Equipment Protection Insurance: This policy covers damage or loss of event-related equipment. For example, if expensive camera equipment is burgled during a film festival, the insurance covers the loss due to burglary or robbery. Replacing the stolen cameras is reimbursed, protecting the event organiser from significant financial losses.

1. 1. Set Protection Cover: This coverage is specifically designed to protect the physical components of a set used for an event, such as stages, backdrops, lighting, and other structural elements. It safeguards event organisers from financial losses caused by damage or destruction of these assets.

Apart from the above, Personal Accident cover can be taken to secure the crew members against any accidental bodily injury.

Let’s now look at some exclusions that apply to the coverages:

 

• • Known Circumstances: Event cancellation due to known circumstances at policy application time.

• • Lack of Funds: Event Cancellation due to insufficient funds.

• • Unauthorized Changes: Event alterations without the insurer’s approval.

• • Regulatory Issues: Cancellations due to legal, regulatory, or permission-related issues.

• • Vendor Errors: Cancellation resulting from vendor mistakes.

• • Delayed Vendor Notification: Failure to notify vendors about event cancellation promptly.

• • Criminal Activity: Cancellation due to the arrest or imprisonment of insured or related parties.

• • Intentional Acts: Loss or damage caused deliberately by the insured or their agents.

• • Mechanical/Electrical Issues: Damage caused by mechanical breakdown or artificial electrical currents, unless fire ensues.

• • Specific Circumstances: Cancellations due to family illness or non-appearance of the artist unless covered by add-on provisions.

Now that we have understood Event Insurance and the coverages and exclusions it offers let’s see who needs an Event Insurance Policy.

Event insurance is not just limited to large-scale events. Anyone planning an event involving a financial commitment, many attendees, or potential liability risks should consider purchasing an event insurance policy. Some of these include:

 

• • Wedding Planners: Weddings are costly, and any disruption can lead to significant financial and emotional stress.

• • Corporate Event Organizers: From seminars to product launches, corporate events often involve multiple stakeholders and high-profile guests.

• • Concert and Festival Organizers: With large crowds, expensive equipment, and high-profile performers, these events are exposed to potential risks.

• • Exhibition and Trade Show Organizers: These events often involve substantial booths, displays, and marketing investments.

• • Private Individuals: Event insurance can protect even a personal celebration, such as a birthday party, wedding, or anniversary.

Indians often hesitate to spend on insurance for personal events. Event insurance is often perceived as an additional, unnecessary expense. Many see it as a pessimistic precaution. Several people are simply unaware that event insurance exists and perceive it to be a complicated subject. However, this mindset is slowly changing. More people are beginning to see the value of event insurance.

Investing in an Event Insurance policy lets you enjoy your festival, wedding, or corporate event with peace of mind, knowing that you are protected against potential disruptions. So, as you plan your next grand occasion, remember that Event Insurance is not just a precaution; it’s a wise choice for ensuring your special moments go off without a hitch.

Celebrate with confidence and make your events memorable for all the right reasons!