Do Wedding Planners Need Insurance?
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You need wedding planner insurance to protect your business from third-party liability claims and claims involving theft or damage to your business property. If a disgruntled client sues you for acting negligent while planning their wedding or if a fire burns down your wedding venue, you will have to pay for losses out of pocket if you don’t have insurance.
Learn how much wedding planner insurance costs as well as additional coverage you may need.
What Is Wedding Planner Insurance?
Wedding planner insurance or called event planner insurance, is a commercial policy that provides coverage for liability and business property for those who plan and execute weddings. This type of policy is not always a singular product sold by insurance companies and may instead be a collection of different coverages useful to wedding planners, such as general liability, professional liability and commercial property insurance.
Why Do Wedding Planners Need Insurance?
Firstly, wedding planner insurance protects you from financial losses that may occur. According to The Hartford, 35% of general liability claims escalate into a lawsuit and can cost more than $75,000 in legal defense costs.
Secondly, having insurance can inspire confidence in your clients because it is a marker of professionalism. This assurance may also encourage potential clients to retain your services over another wedding planner who is not insured.
While venues are usually insured for liability already, this requirement ensures that wedding planners share the risk involved with large events, such as a fire resulting from a fallen candle and causing thousands of dollars in damages and injuries.
What Types of Insurance Do Wedding Planners Need?
There are several types of business insurance that wedding planners should consider. SmartFinancial has compiled a list of some of the most common coverages and a few extras to round out your protection.
Business Owners Policy (BOP)
A BOP is a commercial insurance policy that bundles general liability, business property and possibly business interruption coverage into a single package (more on these below). BOPs provide a relatively cheap and comprehensive foundation of coverage, especially for wedding planners just starting a new business.
General liability insurance, includes bodily injury, personal property and personal injury coverage. Wedding planners with an office will need this to protect against claims should someone get hurt or damage their personal belongings while on your premises. General liability does not cover employee injuries.
Adding commercial property insurance to your pool of protection can provide coverage against covered perils for any commercial-related items such as laptops, business cards and stored decorations you use when planning a wedding (vases, beads, tablecloths, etc.). Covered perils can include fires, windstorms, riots, theft and many more.
Business interruption insurance covers payroll, relocation costs and any loan payments you have in case a covered loss, such as severe weather, theft or vandalism leaves you unable to generate an income So, if a tornado destroys your wedding venue, you may be reimbursed for some of your lost income after having to cancel five upcoming weddings.
Also referred to as errors and omissions insurance (E&O), professional liability insurance protects you against negligence, copyright infringement and defamation claims. Imagine an irate client wanting to sue you because they claim you booked the D.J. on the wrong day. This coverage could help cover legal costs should the offended party choose to sue.
Similar to personal auto insurance, commercial auto insurance meets your state’s minimum insurance requirements and can include some additional coverage useful to wedding planners. For example, if you’re transporting wedding decor to the venue, you can add cargo insurance to your policy to ensure the items are covered during transit.
Cyber insurance protects against losses caused by a cyber attack. Cyber liability becomes a no-brainer when you consider the potential amount of client data a wedding planner may have on a work computer.
Any wedding planner with employees will most likely be required to purchase workers' compensation insurance. This coverage provides financial and medical benefits for workers injured or falling ill because of their job.
Additional Coverage Types a Wedding Planner Should Consider
The following insurance types can be added to your existing policy to help boost your protection.
- Inland marine insurance: Covers equipment, tools and decorations being transported over land or stored off-property. Items left with you by clients, such as family heirlooms being incorporated into the wedding, will also be covered if they are damaged or stolen while in your care.
- Commercial umbrella insurance: Provides additional liability coverage if the losses from a catastrophic claim exceeds the coverage provided by your other liability policies.
How Much Does Wedding Planner Insurance Cost?
The cost of insurance for wedding planners will be based on what types of weddings you plan, the number of employees you have, if any vehicles are being used, how much your business makes and the location of your venues. Your policy limits and deductibles factor in as well.
The type of insurance you choose will also determine the price. For example, a business owners policy that bundles general liability, business property and business interruption coverage can cost as high as $2,500 annually. Those coverages individually purchased can total as high as $6,700 every year.
How Do I Get Insurance for My Wedding Planning Company?
SmartFinancial has provided you with some basic steps to buying insurance for wedding planner professionals:
- Assess your insurance needs: We listed several types of insurance you can consider above.
- Research insurance providers: Try to find a carrier specializing in wedding planner insurance who understands the unique risks associated with the profession.
- Request and compare quotes: Comparing business insurance quotes is simple with SmartFinancial. Provide some information about your business, such as the size of your company, annual revenue and the types of coverage you need, and you can get matched with a policy.
- Review coverage and costs: Look at the policy limits, deductibles, exclusions and premiums. Consider the overall value provided by each policy rather than solely focusing on the cost.
- Consult with an insurance professional: They can help you understand the details of the policies and recommend the most suitable options for your business needs.
- Purchase insurance: Review the policy documents carefully and ensure you understand the terms and conditions, coverage limits and any exclusions or endorsements.
- Maintain your insurance: Keep your insurance policy current and make timely payments to maintain coverage. Regularly reassess your insurance needs as your business grows or evolves and update your coverage accordingly.