Why Does My Venue Need Me to Get Insurance? Don't They Have Their Own Insurance Already?
May 23, 2024
Why Does My Venue Need Me to Get Insurance? Don't They Have Their Own Insurance Already?
The venue more than likely has its own insurance! However, liability insurance is intended to cover claims made against the person or organization responsible for the injury or damage. If you are the event organizer and signed a rental agreement with the venue, you're responsible for almost everything that happens at the event. That means that if someone in your wedding party drags a table across the venue's hardwood floor leaving deep scratches, the venue will look to you to pay for the repairs. The venue's insurance likely won't even cover it because it was your fault. Without insurance covering you for your event, you could be paying for that damage out of your pocket.
A Special Event Insurance policy protects you and them in case someone gets hurt, or damage is done to their facility during your event.
OK, fine, but it says they want to be Additional Insured. What does that mean?
As the Additional Insured (also Certificate Holder), the venue is protected from most claims arising from your event. Say someone trips over decorations you left on the ground. The injured guest may decide to sue you and the venue for the cost of medical care. If the venue was an Additional Insured under your policy, they get the benefit of legal defense if necessary since you were the one who left the decorations on the floor.
You can have multiple Additional Insureds. For example, if your ceremony is happening at one location and the reception at another, you can include both venues as Additional Insureds.
It also says, "Primary and Non-Contributory wording required." What is that?
This additional policy endorsement will make your policy primary in the case of any shared liability. It is typically combined with a Waiver of Subrogation (a contractual provision whereby an insured waives the right of their insurance carrier to go after a negligent third party) and will add to the cost of the policy. Basically, it means your general liability policy is prevented from seeking money from the venue even if the injury was partially the venue's fault.
Ugh! Nothing is going to happen! Why do I need this?
Hopefully, nothing will happen…..but why risk ruining your big day? The wedding couple whose groomsman left the plug open at the bottom of the cooler and caused $10,000 in damage to historic hardwood floors at their venue said the exact same thing! The birthday party organizer whose uncle slipped on some spilled wine and broke his wrist said the same thing! You get the idea. Nobody expects it, but things happen. You don't want to be left with an unexpected financial hardship because of an unforeseeable incident at your event.
This information is provided to assist you in understanding the coverage being offered and does not modify the terms and conditions of any insurance policy, nor imply a claim is covered. Specific coverage terms vary by class of business. See your policy for full details.
