Most nonprofits host special events to raise funds, promote a cause or bring the community together. However, this can create a potential coverage gap. Many nonprofits are unaware that they need to disclose these activities to their insurance agents. Often, event liability is overlooked until a venue requests a certificate of insurance.
In order to address this gap, it’s important to review your coverage forms to ensure event liability is included. USLI offers several strategies to help when in doubt.
Blanket Special Events Coverage: Many of our Nonprofit Package products include coverage for up to 90% of events a nonprofit might hold. Our Charities and Business Associations (link to hitzone) product supports organizations focused on fundraising or promotion, such as Chambers of Commerce or Booster Clubs.
To rate for blanket special event liability, we ask three additional questions:
- What is the number of event days with up to 250 attendees?
- What is the number of event days with 251 to 2,500 attendees?
- What is the number of event days where the organization serves or permits alcohol in exchange for a charge or donation?
The first three “smaller” events incur no additional premium, while each additional event costs $50. “Larger” events (with up to 2,500 attendees) are $100 per event. Events with more than 2,500 attendees are excluded unless the nonprofit is merely a vendor or participant in a larger event. For other types of events that may be excluded, refer to the BP-165 Excluded Events endorsement. For these larger events, our Main Event product is a great solution!
For organizations primarily focused on providing direct services to the community, such as counseling centers, halfway houses, churches or youth sports teams, we automatically include blanket special events coverage at no additional charge for most events with up to 1,000 attendees. Additionally, we include an endorsement, the L-734 NPP, to clarify which types of special events are excluded.
Main Event Special Event Policy: We offer special event policies that can cover a broad range of events. This option is ideal when you need coverage quickly. Our policies can include general liability, host liquor liability, and, in most states, commercial liquor liability. Events can be quoted and bound through SNAP!, by phone or submitted to any underwriter. We can review a wide variety of event types, including larger events with up to 20,000 attendees.
If you’re unsure about the best strategy, consult your nonprofit package underwriter today!
