Venue Liability Insurance for Wedding & Events

Families, schools, enterprises, and many others hold events.  This is why businessmen in the United States run venues that cater to festivals, sports events, parties, one-day events, weddings, and others types of special events. 

If you’re managing one yourself, consider getting venue liability insurance and other business insurance. In this guide, learn what is venue liability insurance, how much it costs, the best insurance companies to purchase the coverage from, and more. 

Venue Liability Insurance

Venue liability insurance is a collective term for different insurance products that will protect your venue business against specific third-party claims. One that’s very useful is general liability insurance. General liability insurance covers the following:

• Third-party personal injuries - Accidents will happen in the premises of your venue business resulting in injuries to the client or their guests. If your business is liable for the accident and aggrieved parties decide to file a claim, general liability insurance will provide money so that you can cover medical expenses without using business funds 

• Third-party property damage -  If not injuries, then accidents your venue business is liable for will cause property damage to clients and their guests. General liability insurance will reimburse the value of the damaged property if the concerned owners decide to file a claim 

• Legal defense - Most claims are settled in court. This is why general liability insurance will cover attorney fees, compensatory payments, administrative costs, and other legal expenses on behalf of your business 

General liability insurance for an event venue business can be added with optional policies so that it provides more protection.

Advertising injury coverage is the first optional policy you can add to general liability insurance. This will cover attorney fees if a client or another business sues your business for slander, libel, copyright infringement, false advertising, and other reputational or advertising harm. 

The second optional policy you can include in venue general liability insurance is liquor liability coverage. Liquor liability coverage is useful if your business has a bar or any other similar facility where alcoholic drinks are sold. It will shoulder or reimburse medical expenses if a client or guest files a claim and accuses your business of over-serving alcohol, which resulted in personal injuries or property damage.

Venue Commercial Property Insurance 

Tailored insurance for venue businesses may include commercial property insurance. Commercial property insurance functions to cover your business’s physical assets. Primarily, this will:

• Help to recover your losses if your venue business’s building and facilities become destroyed due to fire or extreme weather

• Help to recover your losses if the structures of your venue business’s building and facilities become damaged due to fire, theft, vandalism, extreme weather, and other covered perils

If your venue business’s building and facilities become damaged or destroyed due to floods or earthquakes, commercial property insurance can’t help.  Such business hazards are covered by earthquake insurance and flood insurance respectively. 

Commercial property insurance has additional coverages that protect other business assets - stocks, contents, equipment, and tools.  These add-ons are:

• Stocks and contents coverage - Stocks and contents coverage will reimburse your losses if your venue business’s chairs, tables, furnitures, important documents, and other valuable items become lost or damage due to fire, theft, vandalism, and other covered perils 

• Business equipment and tools coverage - Business equipment and tools coverage will reimburse your losses if valuable business equipment such as generators, air conditioners, sound systems, and other related objects become lost or damaged due to fire, theft, vandalism, extreme weather, and other covered perils 

Venue Workers Compensation Insurance 

A venue business will not run smoothly without employees.  Ideally, the workforce consists of kitchen staff, servers, and maintenance technicians. If the serving of alcoholic drinks to guests is offered, then a bartender will also be part of the payroll. 

Workers compensation insurance is a type of venue business insurance you’re sure to get.  You can use the money it provides to pay for costs when an employee experiences a work-related injury or disease. Costs covered are:

• Medical treatment/procedure - Employees in commercial venues usually sustain cuts, burns, lacerations, overuse injuries, back injuries, and more.  An employee might need medical treatment/procedure to recover from these injuries. And one of the jobs of workers' compensation insurance is to cover associated expenses

• Hospitalization - If your employee experiences an accident resulting in severe injuries that need hospital care, workers compensation insurance will cover the bills so that the employee can focus on recuperating and you don’t spend business funds

• Medication -  The attending physician might request your commercial venue’s employee to take medicines for the faster healing of an injury or illness. Workers' compensation insurance provides money the employee can use to buy the needed meds 

• Rehabilitation - Workers' compensation insurance will cover all expenses if your employee needs rehabilitation to fully recover from a work-related injury or disease. Specific costs covered are therapist fees, rehabilitation equipment, and more

• Lost income compensation - Workers' compensation insurance covers lost wages if an employee can’t work due to a work-related injury or disease. Compensation for lost wages is a weekly allowance equal to two-thirds of the average weekly wage

• Death benefits - If your venue business’s employee dies due to a work-related sickness or accident, workers' compensation will cover funeral expenses and will also provide financial aid to dependents 

Venue Commercial Auto Insurance 

Does your venue business have an automobile for hire or rent? If so, consider getting commercial auto insurance too. Commercial auto insurance is a coverage for your commercial vehicle. It provides the following shield:

• Auto liability coverage - Your commercial vehicle might have defective brakes or the driver might make driving mistakes. If an accident happens and the  commercial vehicle injures third parties or damages property, auto liability coverage provides money you can use to cover medical expenses and reimburse damaged property

• Physical damage coverage - No customer will hire a vehicle that’s worn and old. And so, it’s smart for you to get physical damage coverage. Physical damage coverage will cover parts repair or replacement of your venue business’s vehicle. It has two types - collision and comprehensive. Comprehensive physical damage coverage will cover parts repair or replacement if your commercial vehicle incurred damage due to fire, theft, vandalism, and other covered perils. On the other hand, collision physical damage coverage will take care of repair or replacement costs if your commercial vehicle incurred damage to a vehicular accident. Collision and comprehensive physical damage coverage don’t cover aftermarket parts. Also, damage incurred in rollovers is excluded. 

• Medical payments/personal injury protection - MedPay and personal injury protection will cover the passengers and the driver of your commercial vehicle who got injured in a vehicular accident. By saying passengers, we don’t only mean your business’s employees riding the vehicle but clients or guests too. Though both serve the same function, personal injury protection and MedPay are slightly different. MePay only covers medical and funeral expenses.  On the other hand, personal injury protection covers funeral and medical expenses, after hospital visits, compensation for lost wages, and more

Other Venue Business Insurance to Get

The following are more insurance available for your venue business. These aren’t as crucial as the ones we discussed above but can be equally useful in specific situations. 

Employee Dishonesty Insurance

Employee dishonesty insurance will cover losses if an employee commits a crime against your business. Crimes, this insurance covers are:

• Fraud

• Social engineering

• Destruction of money and other securities

• Embezzlement

• Unauthorized bank transfers

• Theft of equipment and other objects owned by your business

Employer’s Liability Insurance 

Employer’s liability insurance will cover attorney fees, administrative costs, compensatory payments, and other legal expenses if an employee decides to sue you for negligence after experiencing a work-related injury or disease. While employer’s liability insurance is available as a stand-alone policy, this is usually offered as an inclusion in workers’ compensation insurance. 

Depending on which state you’re located in, employer’s liability insurance might not be useful if you have workers' compensation insurance. It’s because specific states have workers’ comp laws that prohibit employees from suing employers who have workers' compensation insurance. 

Employment Practices Liability Insurance

An employee might sue your business after experiencing sexual harassment, wrongful termination, workplace discrimination, and other related offenses. This falls outside of the scope of employer’s liability insurance. Instead, the insurance that will cover attorney fees, administrative costs, and other legal expenses is employment practices liability insurance. 

Wedding Venue Insurance

Renting out your wedding venue is a very lucrative business. People marry at some point in their lives and all are more than willing to invest for a good wedding venue. It’s estimated that 1,934,982 get married per year in the US and this translates to 5,301 weddings per day.

Any wedding venue requires insurance, given the many liabilities it is exposed to. Therefore, getting the right insurance package serves as a trusty protection against the unexpected.

Simple mistakes at the wedding venue could result in severe financial losses that put your business at risk. The good news is that the wedding venue policy protects against a wide range of incidents.

For example, this policy would cover the losses that may arise when an intoxicated guest accidentally falls on another person's expensive items and damages them.

Also, if your wedding venue is selling goods to have extra income, wedding venue insurance has a coverage that will take care of personal injury claims and property damage claims clients or their guests file because of defective goods.

Your wedding venue might also provide specialty services such as equipment rentals, event decoration installation, and more. Insurance for wedding venue business has a coverage that will take care of personal injuries, property damage, or financial loss these services cause.

Wedding Venue Liability Insurance

Wedding venue liability insurance is primarily offered as a general liability insurance coverage that covers third-party personal injury claims or property damage claims. This type of venue insurance for wedding covers claims filed because of advertising or reputational harm.

Since most wedding venues offer food catering service to clients, their general liability insurance can be added with products liability insurance and products and completed operations coverage.

Products liability insurance is an inclusion in general liability insurance for wedding venue businesses that will take care of expenses if your business causes personal injuries through food poisoning, improper food mishandling, and other related incidents. Note that product liability insurance is also sold as a stand-alone policy.

General liability insurance for wedding venue businesses has products and completed operations coverage. These covers the claim of a past client who sustained personal injuries or property damage due to your wedding venue’s completed product or service.

Another type of liability insurance available is public liability insurance for wedding venue. Just like general liability insurance, this covers personal injury claims and property damage claims filed by third parties. However, public liability insurance is limited in terms of what exposures are covered because you can’t add optional policies to it.

Event Venue Insurance

If you own an event venue, a situation that should be prevented is failing to meet the expectations of the client due to equipment defect, HR issues, unexpected property damage, or mistakes in handing schedule records. Therefore, it is essential to get event space insurance.

Event center insurance offers general liability insurance, commercial property insurance, and workers compensation insurance. Equipment breakdown insurance and liquor liability insurance are protections you can decide to have at an additional cost.

Entertainment Venue Insurance

Everyone likes entertainment, and this means the demand for entertainment venues is high. If you operate an entertainment venue, you know the various risks that come with it. As much as this is a lucrative business with good profit, it could see you face several lawsuits.

Given the fun and excitement of entertainment sessions, the chances of injury are high. People could fall and sustain serious injuries. If a person feels the injury was due to the dire state of the entertainment venue, they could sue you for damages. This is why it is essential to get entertainment venue insurance otherwise known as event venue business insurance.

Banquet Hall Insurance

Generally, banquet halls bring joy to many people. However, running such businesses comes with a wide range of risks. It could be due to a client suffering severe injuries within the premises or unexpected disasters like fire.

Dealing with such disasters or major lawsuits could result in financial losses. This is why you need banquet hall insurance that protects your business against such cases. The policy ensures that you run your business freely without worrying about possible lawsuits.

Party Hall Insurance

Party halls are typically venues used for social gatherings, dining, or meetings. These meetings tend to accommodate a large number of people. Operating a party hall business can be very profitable; however, this business comes with its fair share of risks. Guests could sustain injuries at the venue and sue you for damages.

You could also lose valuable property due to theft or other unforeseen circumstances. Party hall insurance covers all these cases and ensures your business runs smoothly. This goes a long way in saving you money.

Concert Hall Insurance

Concert halls are venues where modern to classic musical performances are held. If you operate a concert hall, it is important to get it insured. This is vital because concert halls come with a wide range of risks such as stampedes, electronic equipment explosions, and many more.

This could see you spending a lot of money on medical expenses and possible lawsuits. Concert hall insurance covers such claims and helps you save a lot of money.

Venue Insurance Cost

The average venue insurance cost is about $51 per month or $612 per year for a $1 million general liability insurance. On the other hand, the average one-day event venue insurance cost is $177.

Venue insurance price varies due to different reasons. This is because several factors determine the cost of venue insurance. For instance, the type of venue insurance policy you choose affects the total venue insurance cost. Similarly, the size of the event venue business influences the cost of venue insurance. It is essential to consider these factors when purchasing a policy.

Here is a summary of the average venue insurance cost for different types of tailored solutions. It includes both venue insurance cost per year and per month.

In addition, here’s a table showing the pricing of the recommended insurance companies:

Wedding Venue Insurance Cost

The average cost of wedding venue insurance is $177.2 for a one-day wedding venue insurance. A long-term plan costs $62 per month or $744 per year.  Keep in mind that different factors affect the cost of wedding venue insurance. For instance, the size of the wedding venue could increase or decrease the cost of insurance. What you can do to lower your insurance rates is to compare quotes online.