subject: Why Conventions and Festivals Require Separate Short Term Insurance Policies [print this page] Why Conventions and Festivals Require Separate Short Term Insurance Policies
If you are a vendor, one of the things you are going to need is short term insurance.
Just about every venue and event manager requires that you obtain a short term liability insurance policy. They do so in order to decrease overall liability in the event that an accident happens. By requiring vendors insurance, the owner of the venue tries to shield itself from liability (to a certain extent) by making the vendor's liability insurance the first line of defense in the event of a lawsuit.
So the venue owner will ask you to have proof of liability assurance. This is known as a Certificate of Insurance, which proves that you have liability assurance. There is usually a liability coverage limit of $1 million. The venue owner, or organizers or other businesses related to the event may also require to be added as an addition insured on your policy.
What types of events might this include? Special events are usually considered to be functions lasting only a short time. These kinds of shows can run for just a day, or they may continue for a month or longer, such as a county fair.
The key element in determining how to classify something as a special event is the length of time that it is not an ongoing thing. There are now about 350 various kind of events that are considered to be special events, and this number is constantly changing.
Including the Venue Owner in the Short Term Insurance
The venue owner probably will ask you to include the owner as an additional insured on the vendor's policy as another way of protecting the owner from liability, since it shields the owner from liability by putting the vendor's insurance as the primary line of defense.
Special event liability insurance is set up just for these kinds of events. Its sole purpose is to protect vendors legally if someone decides to take action against the vendor for suffering injury or damage to property.
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