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Birthday party insurance, also known as birthday party event insurance, is a critical part of any birthday party and can protect both the renter and venue from unforeseen incidents that could lead to financial loss. Fortunately, birthday party insurance has become very affordable and easy to acquire within minutes, allowing the host to focus on other aspects of the party, while getting peace of mind.
Not sure if birthday party insurance is worth it? Here’s a perfect reason why birthday party event insurance is critical and the video below is another good example of what can happen an an event like a birthday party:
So What are The Pain Points of Birthday Party Event Insurance?
For The Host:
Birthday parties are already stressful. Finding out from the venue that an insurance policy is required (especially at the last minute) can add further stress to the host. Furthermore, having to research and acquire a policy can take days, even weeks through traditional broker/agent channels.
For Venues:
Birthday parties and event space rentals are a large source of revenue for millions of venues around the country. As part of the risk mitigation process for these venues, the venue (or their insurance company) now dictate that third-party renters need to secure their own insurance for the event. However, this requirement adds a large administrative burden on to the venue. Venue administrators need to follow up with renters to ensure they have secured an insurance policy with the right coverage. Also, ensuring that the venue is properly listed as an additional insured on the policy certificate is an additional burden.
For Brokers/Agents:
Because birthday party policies can start at $75, it is hardly worth the time and effort for brokers and agents. Policies can take days, even weeks to coordinate, making it inefficient to process policies for birthday parties. However, in order to maintain a strong relationship with venues, brokers and agents continue to (grudgingly) process these policies and view these as a loss-leader for potential future business from the venue for larger and more profitable business policies.
Reasons Coverage is Needed
Why Venues Should Request Birthday Party Insurance
At the end of the day, a general insurance policy is a requirement for any business. A single claim could lead to a business/venue losing access to affordable insurance options (or even leave it with no options at all). Venues that rent out their spaces for parties can insulate themselves (and protect their insurance premiums) by requiring third party renters to secure birthday party insurance.
A simple indemnification clause in the renter’s agreement is not enough!
Why Renters Must Get Birthday Party Insurance
Aside from being made mandatory from the venue, a birthday party insurance policy can protect the renter/organizer from lawsuits and financial losses that results from accidents and injuries that occur during the party. It also provides peace-of-mind allowing the policyholder to focus on the event.
Not convinced? Consider these examples:
- “Silly string” sprayed on guests at birthday party caught fire causing second & third degree burns to several children. Law suit filed against rentee and hotel for $1,000,000. Event insurance settled for $135,456 plus legal fees (defense costs).
- Photographer’s camera bag with event pictures was stolen during the event. Hotel accused of failing to provide adequate security. Event Insurance paid $3,000 plus defense costs (legal fees).
- Venue held Rentee responsible for damaged carpet at reception. Event insurance paid $5,523.81.
- A guest moved antique dining table and two table legs cracked. Claim paid by Property Damage coverage – $1,865.
- Elderly guest tripped over electrical cord taped to the carpet. Event coverage paid $15, 245.06 plus defense costs (legal fees).
- Hosts held responsible for damaged table top and other property damages. Event insurance paid by Property Damage coverage – $7,000
- Fire damage to venue caused by rentee. Event insurance paid $24,365.60.
Why Brokers Should Continue to Offer Birthday Party Insurance.
Although a traditionally painful product to sell, it is now possible to automate the entire distribution of a birthday party insurance policy. This allows brokers to maintain their relationships with the venue with no additional effort. Best of all, commission is still paid to the broker making special events insurance a passive income source for brokers going forward.
Importance of Protecting Your Loved Ones With Birthday Party Insurance
No one ever wants to think about what could go wrong at a birthday party. But the truth is, accidents happen. And when they do, you’ll be glad you had birthday party event insurance to protect your loved ones.
Birthday party insurance is designed to financially protect you in the case of an accident or unforeseen circumstance that causes injury to someone or damage to property. Depending on the policy/insurer, it can also provide coverage for cancellations or postponements due to bad weather or another unexpected event.
Why Do You Need Birthday Party Insurance?
While no one likes to think about the possibility of something going wrong at a birthday party, the truth is that accidents happen. Sometimes people get hurt or property gets damaged. You could be liable for any injuries or damages of your birthday party event.
That’s where birthday party insurance comes in. A good birthday party insurance policy will cover liability and property damages. It’s always better to be safe than sorry, so protecting your birthday party with insurance is always a good idea.
How to Get Birthday Party Event Insurance?
The best way to get birthday party insurance is to find a credible online distributor. Be sure to consider the size and location of your event and any unique circumstances that might apply.
You should also consider how much coverage you need. For example, if you’re hosting a small birthday party at your home, you might not need as much coverage as you would for a large one.
It’s always a good idea to have some form of birthday party event insurance in place. Taking these precautions gives you peace of mind knowing that your family will be safe if something happens.
Disclaimer: The materials available on this site are for informational purposes only and should not be construed as advice or guarantees on any subject matter. The opinions and statements expressed through this site are the opinions of the individual author and may not reflect the opinions of JAUNTIN’. This blog contains general information which may not be current or accurate. For specific questions about insurance and any requirements, please contact your insurer directly.
Birthday Party Insurance FAQs
In general, the venue’s insurance protects the venue and does not provide coverage for liability or property damages caused by the party host or its guests. Just like a renter of an apartment can be held liable for damages, so can a renter of an event venue.
This is a definite possibility. In most cases, third-party insurance is required by the insurers of the venue/property. Even if it isn’t, requiring third party renters to acquire their own insurance can insulate the venue’s insurance policy from claims.
Coverage can start from $75 and cover up to four days for the same price.
Many insurance policies have a subrogation clause, which grants the insurance company the right to seek damages from at-fault third parties on behalf of their policyholders. Subrogation allows the insurer to pay the claim right away, and then go after the at-fault party on their own to cover that expense. In the case of events, the venue’s insurer may pay for damages upfront, then go after the renter for any damages they feel they are entitled to.
Post-claim underwriting happens, just as it says, after the claim. The insurance company only goes through the underwriting process after a claim is made. Any inconsistency found between the records and the forms used to apply for the coverage could make a claim invalid. In the case of birthday party venues, if it is not disclosed upfront that venue rentals are a source of income, the venue itself could be denied coverage in the event of a claim arising from a third-party event. This could further expose the party host.
Bailee coverage can cover losses to customers’ property due to perils including fire, lightning, theft, burglary, robbery, windstorm, explosion, collision, floor, sprinkler leak, earthquake, strike and damage or destruction in transportation. In the case of events, if a third-party renter rents third-party property as part of the event that’s unrelated to the venue, the party couple could be liable for any damages caused by or to the third-party property. This includes rented chairs, decor, cutlery, and more.
Primary and Noncontributory
Primary designates that one party’s liability policy is responsible for responding to a claim first before another entity’s policy applies. Noncontributory stops the primary party’s insurer from seeking contribution from the other entity’s policy for paying a claim.
Waiver of Transfer of Rights of Recovery Against Others to Us
A legal endorsement that prevents an insurer from recovering the money they’ve paid out on a claim from a negligent third party.
Yes, each state is regulated differently. Please see the state specific posts for more information: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, New Jersey, New York, North Carolina, Oregon, South Carolina, Texas, Utah, Vermont, Virginia, Washington, Wisconsin.