Company Events: Prepare Ahead for Potential Risks

Will you be hosting a company picnic this summer? Perhaps you’re renting out a facility for a fun afternoon for employees and their families. Or holding a fall fair? These events can be great for morale and team building, but they also involve risk. Be sure to cover all your company liabilities with the proper insurance. Consider special event insurance.

What does it cover?

Special event insurance protects you from third-party claims in case of bodily injury or property damage. For example, if an employee’s child breaks an arm on the obstacle course, or an employee’s date sprains an ankle on the dance floor, you’re covered in much the same way that you would be under general liability insurance.

What should you add?

In addition to third-party claims, your coverage can be tailored to include other needs. You can add property insurance to protect company equipment or the space used for the event, and cancellation insurance to cover costs for postponing or canceling due to weather or other issues. It’s also wise to have employers’ liability insurance in case an employee (not considered a third party under special event insurance) were to sue for an injury or illness that happened at the event.

Are you a party animal?

If you will be hosting more than one event this summer, you may want to create a policy that covers several months and includes coverage for multiple events. Policies can be written for one day or up to one year. Your agent can suggest the best option for your company.