See our comprehensive 2025 review of all the major U.S. event insurance companies:
Event planning asks you to complete a long list of must-haves, and at the top of them is securing event insurance. It’s a trusty backup against things you can’t control which can otherwise dent your budget and leave you in legal battles.
For example, if the wedding event you’re organizing isn’t insured and a mishap occurs at the venue, you’ll have to bear the repair costs, and there could be possible suing. Therefore, having a reliable event insurance plan is inevitable. But, how much would that cost? That’s what we’ll address today so you can plan event insurance with a clear estimate of the involved costs.
This guide breaks down the factors that influence pricing to offer clear guidance so you can make informed decisions. So, let’s take the guesswork out of event insurance costs together.
What Is Event Insurance?
As the name already tells, event insurance protects you from financial losses that can occur before or during your event. So if something goes wrong and you have event insurance — accidents or damage — it’ll help you handle the costs without derailing your plans or affecting your finances.
Let’s say you’re organizing a community fair. You’ve booked vendors and everything is set. But when the event was supposed to happen, a storm damages some equipment which results in the event getting postponed. If you don’t have insurance at this point, you’d be responsible for the costs of rescheduling and any damages. But, if you’ve already insured the day of the event, the insurance will cover these expenses and ease your financial burden.
Factors Affecting the Cost of Event Insurance in 2024
Like any insurance plan, event insurance doesn’t have a set budget limit and multiple factors influence it. Before we get to the cost of insurance, let’s look at what will influence it.
Type of Event
Of course, the type of event you’re organizing will impact the costs and risks associated with it. Here’s how different events play out in terms of an insurance package:
- Weddings are generally considered low-risk, so their insurance premiums might be lower.
- Concerts are higher risk because of crowds and possibility of injuries, which will make you pay a higher premium.
- Corporate gatherings’s risks vary according to the activities involved.
- Festivals are similar to concerts and can be high-risk because of more attendees.
Event Size and Attendance
After that type of event, the number of people participating in it determines its insurance premium. More attendees mean a higher chance of incidents occurring. And vice versa.
- Fewer attendees result in lower premiums.
- As attendance numbers rise, so do the risks and insurance costs.
An event with 50 guests will cost less to insure than one with 5,000 attendees. Therefore, you must provide accurate attendance estimates to your insurer to ensure proper coverage.
Location and Venue
The place where your event takes place also influences the insurance price. For example, indoor venues are mostly seen as less risky because of controlled environments, while outdoor ones are deemed at a higher risk because of unpredictable weather. Moreover, the geographical location also matters. Events happening in areas that are prone to extreme weather or with higher crime rates will attract higher premiums.
Duration of the Event
The length of your event impacts the insurance cost and one-day events are lower in cost due to the shorter exposure period. On the other hand, multi-day events incur higher premiums because there’s more time for something to go wrong.
Risk Factors and Activities
As we explained earlier, an insurance premium depends on the event’s risk level because the insurer essentially covers those risks. If there are certain possibly risky activities planned for your event, they’ll raise insurance costs. For instance, alcohol service increases risk due to possible alcohol-related incidents, and the insurer will ask for a bigger premium. Other risk factors linked with events are fireworks, mechanical rides, etc.
How Much Does Event Insurance Cost in 2024?
Now that we know which factors impact an event insurance’s premium let’s get to some ballpark estimates of such insurance. Here’s how much different levels of events pay for insurance:
Small Events
Small events with up to 100 attendees have an average cost for basic liability coverage ranging from $75 to $200. Their coverage includes protection against third-party bodily injury and property damage claims.
If you’re hosting a small wedding, a birthday party, or a business meeting, this category applies to you. Since there’s a lower risk associated with fewer attendees, it keeps insurance premiums affordable.
Medium Events
A step above small events are medium-sized events with 100 to 500 attendees. These usually see insurance costs between $100 to $500 because an increased number of guests elevates the risk. If you’re planning a regional conference or a charity fundraiser, there will be more people involved and a greater chance of incidents occurring. It will all reflect in a higher event insurance premium.
Large Events
If you’re organizing an event exceeding 500 attendees, the average insurance cost will start from $500 and can go up to $1,500 or more. As you can tell by now, the bigger the number of attendees, the higher the insurance premium.
Besides posing more safety risks, more participants also mean a higher number of claims, so the insurer will ask for a higher premium. Music festivals, large exhibitions, or major sporting events fall into this category. Since most of these events cater to thousands of visitors, comprehensive insurance coverage is needed for them.
Event Cancellation Insurance
Event cancellation insurance is another coverage that protects you if you’re forced to cancel or postpone your event. It’ll likely cost between 1% to 3% of your total event budget. Say you’re organizing a conference with a budget of $50,000. Investing in cancellation insurance would cost between $500 and $1,500. This coverage can reimburse you for non-refundable expenses if you need to cancel due to reasons beyond your control.
Event Insurance Cost Breakdown by Event Type
Besides an event’s scale, its type also influences how much you pay as an insurance premium. Let us give you a low-down of insurance costs varying according to the event type.
Weddings
The average total cost of event insurance can be anywhere between $150 to $400 — it’ll include general liability and cancellation insurance.
Corporate Events
Corporate events — conferences, seminars, and company parties — see insurance costs between $250 and $600.
Festivals and Concerts
Festivals and concerts have higher insurance costs that usually average from $1,000 to $5,000 or more. Such a big increase is because of the large crowds and elevated risks involved.
Sporting Events
The average insurance cost for sporting events is from $300 to $1,000 or more because of risks like participant injuries or equipment damage.
Non-Profit and Charity Events
Non-profit and charity events mostly benefit from discounts from insurers because of the nature of work they’re doing and their average costs are between $100 and $300.
Insure Your Event’s Success with the Right Package
Securing the appropriate event insurance is important for your event’s success and smooth operation. It’s a safety net that helps you focus on delivering a great experience without worrying about financial risks. Once you understand various coverage options and choose a policy that fits what you’re looking for, you can protect your investment and peace of mind. So don’t leave your event’s success to chance and take proactive measures to safeguard it.
FAQs
Is event insurance mandatory?
No, event insurance is not always legally required. However, it usually becomes a necessity because of venue policies or contractual obligations. Many venues mandate that event organizers carry liability insurance to protect against damages or injuries that might occur on their premises.
Can I get insurance if I plan to serve alcohol?
Yes, you can. Also, know that it’s crucial to inform your insurer about alcohol being present at your event. Liquor liability insurance is a coverage that protects you from claims related to alcohol-related incidents, like injuries or property damage caused by an intoxicated guest. Sure, serving alcohol increases the risk profile of your event, but if you have appropriate coverage, you can manage these risks.
What if my event is canceled due to low ticket sales?
Event cancellation insurance covers situations like severe weather and natural disasters and cancellation because of low ticket sales is generally not covered. Financial shortfalls resulting from low ticket sales are considered a business risk that event organizers assume.
Does event insurance cover injuries to attendees?
Yes, event insurance includes general liability coverage that protects you if attendees suffer injuries during your event.
How late can I purchase event insurance before my event?
You can mostly purchase insurance up until the day before your event. However, it’s better to secure insurance as early as possible since it ensures that you’re covered for any incidents during the planning stages. Some coverage options, like cancellation insurance, may ask you to purchase the policy a certain number of days before the event to be effective.