Special events coverage can save the day

Picture this. It is a bright, sunny day and Joe and Mary decide to take the family to the community art fair. There Joe is, corn dog in hand, strolling through works by emerging artists, traveling exhibitors and his Aunt Edna. Then suddenly, a strong wind blows through the picturesque street, knocks a sculpture over, and it knocks Joe on the head, leaving him with a concussion.

The hospital bills for Joe’s trip to the emergency room, routine CAT scan and follow up meds come to a pretty penny. So, who’s footing the bill?

While responsibility for accidents at a special event can often be complicated to assign, one thing is for sure: The first stop is always the event organizer. No matter how careful planners are preparing for unforeseen circumstances, there is always at least one surprise. When something goes wrong, someone has to take responsibility and, in that person is the event organizer.

Due to their very nature, with the number of details, people and “x” factors involved, special events require special coverage.

In its simplest definition, special event coverage is general liability insurance for injury to spectators or attendees at a wide variety of social, civic and club events. Those include, but are not limited to, concerts, shows, conventions, pageants, sporting events, tournaments, Christmas tree lots, pumpkin patches and the sometimes ill-fated art fair.

With such a myriad of events, the risk of injury to a spectator or property can be significant. As such, it is important for the sponsor or organizer, whether a church, civic group or a booking manager, to protect itself by obtaining liability insurance to cover any legal liability for injury to a spectator or property at their special event. (Injury to a participant is generally excluded).

What an agent should know
Any organizer or sponsor of an event needs special event liability coverage. Whether the event has spectators in the truest sense, such as at a softball game, or falls in a gray area, such as customers at a pumpkin patch or bingo game, the organizer needs this coverage. If the event organizer is renting space or land, the landowner would certainly require the organizer to carry its own insurance so that the landlord is protected from liability.

When in doubt about whether an event needs insurance, an agent should ask two questions: Did my client/their company organize it? Will there be people there? If the answer to both questions is yes, chances are the organizers need the policy.

Someone organizing a block party may not think insurance is necessary. It’s all neighbors; it’s all good fun. However, even if the city doesn’t require it, the organizer needs to protect himself. In one case, a man organized a block party. Although the event was happening out on the street, he had a pool and allowed the neighborhood kids to swim in it. Because part of the event was on his property, he was liable.

While there are quite a few carriers in the excess, surplus and specialty market that write special events insurance, a good policy, especially for tough-to-insure events (like large concerts, think: Rolling Stones, with alcohol and thousands of spectators) can still be a challenge to find.

Chris Behymer is vice president, casualty underwriting for Markel Southwest Underwriters. E-mail: cbehymer@markelcorp.com. Phone:480-905-5059.