As a party host, you take on liability when you rent your venue, make plans to provide alcohol, and bring revelers together. Are you protected in the event that something goes wrong at your party? If not, read on to learn everything you need to know about party insurance.
What is party insurance?
Party insurance is a type of special event insurance designed to protect hosts and party planners from financial liability for accidents that may take place during their parties or festivals. When planning a party, you may want to consider the following kinds of insurance:
Liability insurance – Whether you’re hosting a kid’s birthday party at a ball-pit or a gala in an opera house, you’re inviting guests to explore an unfamiliar venue with friends and strangers alike. As they mingle, one of your guests could have their property damaged or get hurt. Event insurance is meant to protect against the third-party property damage and bodily injury liability that you take on as the host.
Liquor liability insurance – depending on the specifics of your policy, liability insurance may not cover damage done by intoxicated guests (that is, if you served them alcohol at your party). Liquor liability insurance can help to protect you in the event that a drunk guest causes havoc for themself or others.
Which (insurance) do you need for your party?
It all depends on the risk you’re willing to take on—and of course, whether or not you’re serving alcohol. To better understand private party insurance, we’ll take a closer look at these two kinds of liability coverage.
Party liability insurance
Wedding liability insurance is designed to protect policyholders from third-party claims of personal injury, bodily injury, and property damage. A party liability policy might protect you in situations like the following:
Does your party include lawn games? A slip-n-slide? A dance floor? Even if your guests are mostly playing bingo, there’s still the chance that someone could get injured. Should someone trip and fall while walking up to collect their prize, you could be held liable.
3rd-party property damage
When alcohol is involved, people lose their coordination and become more prone to accidents. Should an intoxicated guest fall over and break something in the venue, you could be held liable for the damages.
People attend your event expecting to have a good time. They may become litigious if their property is ruined by a drunken guest. If the case goes to court, you could be held responsible for your own legal costs, even if you’re ultimately cleared of wrongdoing.
Should one of your guests suffer alcohol poisoning and require a trip to the ER, you could be held liable for their medical costs.
Liquor liability insurance
While private event liability insurance can cover you against bodily injury and property damage, it may contain an exclusion for damage caused by drunken guests. An insurance exclusion is a kind of risk specifically excluded from your insurance policy. Because alcohol can make people reckless and even dangerous, many liability policies exclude this kind of risk.
If you’re serving alcohol, you want to make sure you’re protected against bodily injury, third-party property damage, and medical costs caused by guests that you’ve served alcohol. Your liquor liability insurance coverage might also help cover:
- Medical costs should one of your guest’s drinking land them in the emergency room
- Legal costs should one of your guests drive drunk after leaving your party, causing someone else injury or property damage
- Damage to the venue’s property
However, it’s important to note that your liquor liability insurance policy will ˆnot cover all the damages that might result from drinking. Common policy exclusions include:
- Incidents that result from underage drinking. As the host, it’s your job to make sure that guests under 21 don’t have access to alcohol.
- Damage to your personal property. For that, you’d need a commercial property policy.
- Libel and slander. While some liability insurance covers personal injury (including liability and slander), liquor liability insurance usually does not.
Doesn’t another insurance policy already cover that?
When you host a party, you may assume that your venue and vendors already have insurance that will cover costs in the event of the claim. If you’re not sure, ask whether they have general liability insurance and professional liability insurance:
General liability insurance provides coverage in case of client and third-party claims of bodily injury, personal and advertising injury, and property damage (excluding alcohol-related incidents).
Professional liability insurance provides coverage in case of claims of errors, omissions, and mistakes related to their work.
It’s important to book reliable, professional vendors and venues that have their own insurance policies. However, that doesn’t mean they’ll take on all the risks related to your party.
When you rented your venue, you likely took on contractual liability. That means you, rather than your venue, are responsible for injuries and damage that take place while you’re renting it. Additionally, if your guests sue your vendors for damages, they might still name you as a party in a lawsuit, and you’d be responsible for your own legal costs while the case goes to court.
Taking out your own party insurance can help you get in on the fun, knowing that you’re protected if something does go wrong.
Enjoy the party worry-free
If you’re worried about something going wrong and spoiling your party, don’t let it keep you from cutting a rug. Instead:
- Consider taking out liability insurance in case a guest is injured or has their property damaged
- Consider liquor liability insurance if you’re serving alcohol to your guests
- Ask your venue and vendors if they’re insured
Once you’ve crossed these items off your to-do list, put on your party shoes and get ready to host a good time, knowing that you’re protected from risk.
Here at Thimble, we offer event liability insurance for the 21st century. With our revolutionary on-demand insurance coverage, you can choose a policy that goes by the hour, day, or month. Take out insurance just for your party and don’t spend money you don’t need to. If you need to make changes, add Additional Insureds and generate as many COIs as you want—for free.
If your vendors need general liability and professional liability insurance, send them our way. When you click “Get a Quote” or download the Thimble mobile app, you can get insurance in less than 60 seconds. Just enter a few details, review your quote, and make your purchase. Voila—you have insurance.
You want your party to go off without a hitch. We’re here to help make sure that it does with reliable insurance coverage.
Our editorial content is intended for informational purposes only and is not written by a licensed insurance agent. Terms and conditions for rate and coverage may vary by class of business and state.