What is a special event?
A special event is defined as an event, such as a wedding, anniversary party, Bar Mitzvah, fair, carnival, exhibition, fundraising dinner or other event of short duration, usually lasting ten days or less.
Another type of event which would qualify as a special event but be held open for more than 10 days might be a Corn Maze, Pumpkin Patch or a Christmas Tree Lot open to the public for the sale of Christmas trees. In addition to Special Event Liability insurance, other types of special event insurance would include Event Cancellation, Hole In One and Prize Indemnification insurance.
What the rental facility will most likely require:
You, the special event holder, will most likely be required to provide proof of liability insurance to the facility/venue where you have decided to hold your special event. In addition to providing proof (in the form of a piece of paper known as a Certificate of Insurance) to the facility/venue that you have secured a liability insurance policy, you may also be required to add the facility/venue to this required liability insurance policy as an insured. This is known as adding the facility/venue as an Additional Insured to this liability insurance policy which the facility/venue requires you to purchase before you will be allowed to hold your special event.
The practice of a facility/venue requiring that they be named as an Additional Insured on a $1,000,000 General Liability insurance policy by all persons or entities renting or using the site, is quite common. This insurance industry practice is a well-known and proven method of risk transfer from the standpoint and to the benefit of the facility/venue. The facility or venue is attempting to transfer some of the risk of a liability lawsuit to you, the event holder. It is so common, in fact, that the required Additional Insured wording or language is generally contained within the Insurance Requirement section of the Facility Rental Agreement or Facility Use Agreement. This agreement refers to the short term rental contract which you signed at the time you rented the facility/venue for your special event.
Finding a solid party insurance, wedding insurance or other special event insurance plan will let you rest easy in knowing that you are financially protected from unforeseen issues at your next event.