Insurance is essential to any business. According to reliable data, it's predicted that 40% of small businesses will make an insurance claim in the next 10 years. Given that small businesses have an average lifespan of nearly five years and there are approximately 4.5 million businesses with up to 10 employees at any given time, the estimation is that Hartford's number translates to about 8.8% of businesses making claims per year.

This is a good indicator of how insurance is important to businesses. In this article, we look at a specific type of insurance – attendee insurance – and how it can protect your business.

What Is Attendee Insurance?

When you're a business, it's normal to hold various events like exhibitions and conferences where you invite a lot of people from the external world. These types of events are called special events, and unfortunately, if something were to go wrong during the event, your business would be held liable for this. That's because you're the party responsible for hosting and sponsoring the event, so you may incur financial losses if there are claims submitted against you.

There may be no claims generated against you in some cases. Still, you might find your business incurring financial losses when your event gets canceled unexpectedly or there's reduced attendance. The good news is that you can get insurance to protect your businesses from such claims. One type of liability coverage that can protect your business is attendee insurance.

When you purchase an attendee insurance plan, you're covered in case your event has to be canceled because of bad weather conditions. Attendee insurance also protects you against a financial disaster should you have to evacuate your business for whatever reason. In some cases, some events offer attendees the opportunity to purchase attendee insurance when they're completing their registration. When you purchase attendee insurance, this allows you to submit a claim if you have a good reason to do so down the line. In that case, you'll need to contact the insurer with your policy ID in hand. You'll be provided with a claims agent to walk you through the process of filing your claim.

Benefits of An Attendee Insurance Plan to You Business

When you're sponsoring an event, it's safe to say there's no way of knowing what could go wrong. Attendee insurance is one of the best ways to ensure that your business protects itself from any claims that may be generated. This is important because, at any given moment, your business is facing all kinds of risks. These risks multiply if you regularly sponsor different kinds of events, so it's crucial to have the right insurance plan in place. This is where an attendee insurance plan comes in. For example, if you sponsor an event and purchase an attendee insurance plan, the policy will pay for any losses that you incur if people fail to attend your event due to variables that are out of your control.

When taking out an attendee insurance plan, your business is protected against severe weather conditions such as storms, hurricanes, or other phenomena such as fire or flooding that may make your venue unavailable. There's a long list of reasons that may stop your event from proceeding, and some of them may be as simple as the keynote speaker failing to show up. Without an attendee insurance plan in place, it means all your financial losses are not covered. This can be financially devastating if your business has invested a lot of money into making the event a success. You may have been planning to realize revenue through attendance, but this will not be possible if the event is canceled.

Finding the Right Coverage for Your Attendee Insurance Plan

An attendee insurance plan can be a lifesaver but be sure you have enough coverage. Keep in mind that this insurance plan pays for losses due to no attendance as long as the reason behind the cancellation is not excluded from the policy. Sometimes your event doesn't have to be canceled. You can still file a claim for reduced attendance as long as the underlying reason is not excluded from the policy. So when purchasing attendee Insurance, the vital thing to keep in mind is to read the fine print to ensure that your coverage is as broad as possible. That way, your business has maximum protection in case something goes wrong.

By having the right insurance in place, your business can protect itself from financial losses and loss of reputation. If you would like to find out more about attendee insurance, please get in touch with us.