A Quick Guide To Understanding Pricing For Event Insurance
When planning an event, it’s important to budget for the insurance cover that protects your investment. Event insurance is an essential item and understanding the pricing factors can help you accurately anticipate costs and make informed decisions. Here are some common factors that insurance companies use when calculating their premiums.
1. Type of Event: The Foundation of Pricing
The nature of your event is often the first factor insurers consider, as different events come with unique risks. A small art exhibit, for instance, generally poses less risk than a large music festival or sporting event.
Example: A community charity auction or a business conference may carry lower premiums due to a controlled environment and predictable activities. In contrast, a concert with a high-energy crowd or a sports tournament with physical activity will typically have higher premiums because of the increased likelihood of injury or property damage.
2. Event Duration: Pricing Based on Time
How long your event lasts can significantly influence insurance costs. Events spanning multiple days or several hours generally come with a higher premium because longer exposure to risk increases the chances of incidents occurring.
Example: A single-day conference might incur a lower insurance cost compared to a three-day outdoor festival, as the festival will require coverage over a longer period and involve ongoing activities and potential hazards.
3. Number of Attendees: Scaling the Coverage
The size of your audience is a crucial pricing factor. More attendees mean a higher risk of incidents, from injuries to property damage. Insurers typically set tiers based on attendance, with larger gatherings commanding higher premiums to account for the increased liability.
Example: A private workshop with 50 people will be less costly to insure than a large event with thousands of attendees, like a concert or sports game. The more attendees, the higher the premium to accommodate the risk.
4. Venue and Location: Assessing Site-Specific Risks
The event location and venue type also impact insurance costs. Outdoor venues come with weather-related risks, while certain geographic areas may have a higher risk of natural disasters.
Example: A wedding in a private indoor venue may have a lower insurance cost than an outdoor fete held in a public park, where weather and ground conditions could increase the risk.
5. Coverage Types and Limits: Customising Your Protection
The scope of coverage and the policy limits you choose will directly affect the price. Standard policies often include public liability and employer’s liability where required, but adding cover extensions—like event equipment insurance or cancellation insurance—will raise the premium. Additionally, higher indemnity limits for liability will increase costs.
6. Type and Level of Activities: Understanding Risk Factors
Certain activities increase the likelihood of accidents or injuries, impacting insurance premiums. High-risk activities like fireworks displays, inflatables and sports competitions require higher indemnity due to the potential for accidents.
Example: An event featuring live cooking demonstrations with open flames or a sports tournament involving contact sports will have higher premiums than a lecture or exhibit with passive activities.
7. Staff and Volunteers: The Cost of Coverage for Helpers
If your event relies on volunteers or temporary staff, you may need employer’s liability insurance, which can add to the overall cost. This cover protects you in case an employee or volunteer is injured or falls ill during the event due to work-related activities.
Example: A charity event with multiple volunteers assisting in setup and guest management will incur additional insurance costs compared to an event managed solely by the organisers.
8. Event History and Organiser Experience
Insurers may consider the event’s history and the organiser’s experience level when determining pricing. If you’re a seasoned organiser with a track record of incident-free events, insurers might offer lower premiums. New or high-risk event types, however, may attract higher costs.
Example: An experienced event organiser hosting an annual conference with a history of smooth operations may receive a lower rate than a first-time organiser planning a new type of event.
The team at David J Miller have vast experience in knowing which insurers are more competitive/adaptable for certain risks which gives you peace of mind so get in touch and let’s see what we can do!