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Why Does My Non-Profit Need “Special Events Insurance”?

Image result for fundraising luncheon table settings

This is a question I am asked over and over.

In a society with so many law suits, it’s always best to protect yourself from ever having to deal with those worst-case scenarios. Special Event Insurance provides protection in the event a volunteer, guest or participant injures themselves or property damage is caused to a third-party’s property.  If your Non-Profit is targeted by a lawsuit and it doesn’t have adequate funds to pay for its defense, judgments or any settlements it’s found liable for, your directors and officers will be paying the costs. Special Event Insurance covers any damages your Non-Profit could be ordered to pay in court.

Special events and fundraisers such as luncheons, fundraising dinners, golf tournaments, bake sales etc.… play a significant part in Non-Profit organizations yearly fundraising goals. Keep in mind, they come with great responsibilities and greater liabilities and with this comes greater risks. Most often, these fundraisers and additional events are not included in the liability insurance coverage purchased by most nonprofit organizations. Normally, these policies only provide coverage and protection for normal daily operations of the nonprofit organization.

Special Event Insurance coverage is divided into two main components: property damage and bodily injury. Accidents that fall under either of these categories can end up costing you and your Non-Profit thousands of dollars in damages if you’re without the proper coverage. Damages recoverable from directors and officers of even a relatively small nonprofit organization can easily exceed the net worth of many individuals.

Also, any vendors or contractors you hire should provide evidence of current coverage for general liability (and for workers’ compensation). Consider requiring that your organization be named as an “additional insured” on the vendor’s or contractor’s general liability policy, to protect you in the event your organization is named in a suit arising from the other party’s negligence.

Liquor Liability is an option you may need to purchase if you sell and profit from alcohol sales at the covered event. This type of Liability Insurance provides coverage for bodily injury or property damage for which you may be held liable because of: Causing or contributing to the intoxication of any person; or Violating any statute, ordinance, or regulation relating to the sale, gift, distribution, or use of alcoholic beverages.

If your nonprofit organization holds special events or fundraisers, it is important that you contact your insurance agent to be sure these events are properly covered.