How much is event planner insurance?

General liability insurance for event planners costs an average of $29 per month, or $350 per year.

This policy covers accidents that harm clients or other third parties. For example, if a caterer suffers a burn from a warming tray you provided, your general liability policy would cover their medical costs, or legal expenses if your business is sued.

General liability insurance also pays for lawsuits related to advertising injuries, such as defamation or copyright infringement. It would cover legal defense costs if you published a photo of a client's party on your website without permission, or slandered a competitor on social media.

You might need general liability coverage to sign a commercial lease, secure a contract with a client, or rent an event venue. It shows your clients and partners that they're protected against financial losses from the most common risks.

Below is the average general liability policy for event planners who buy from TechInsurance:

Premium: $29 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The cost of general liability insurance depends on numerous factors, including your business operations, the policy limits and deductible you choose, the size and location of your business, and the number of employees you have.

Any exclusions or endorsements on your policy will also affect your premium. For instance, you may need to list an event venue as an additional insured on a wedding insurance policy for a client.

Event planning businesses pay an average of $42 per month, or $500 per year, for a business owner's policy (BOP).

A business owner's policy bundles general liability insurance with commercial property insurance at a lower cost than buying these policies separately. You can often include additional coverages as well.

A BOP provides insurance for your office in the event of a fire, storm, or theft. It also protects against liability claims related to bodily injuries and property damage, such as a venue that reports a window was broken during an event.

Common add-ons include business interruption insurance (or business income coverage) to cover employee wages and other operating costs during a temporary closure.

This is the average business owner's policy for event planning businesses that buy from TechInsurance:

Premium: $42 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Businesses that are eligible for a BOP usually are small in size (fewer than 100 employees) and low risk.

The cost of a business owner's policy depends on factors such as the value of your business property, your location, and whether your office has a burglar alarm, sprinkler system, or other loss control measures.

On average, event planners pay $42 per month, or $500 per year, for professional liability insurance.

Professional liability insurance covers lawsuits related to professional negligence. It would pay for attorney's fees and other legal costs if an event planner failed to book a promised venue, or if they made an error at an awards ceremony.

This policy also covers frivolous lawsuits, such as a client who sues their wedding planner to try and recoup some of the event's costs.

You might see professional liability insurance coverage referred to as errors and omissions insurance (E&O) in other industries. Partners and clients might require you to carry this type of coverage, as it'll pay for legal bills that might otherwise impact them.

This is the average professional liability policy for event planners who buy from TechInsurance:

Premium: $42 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,000

Insurers consider several factors when determining professional liability insurance costs, including the coverage limits and deductible you choose, the size of your firm, the specific events you plan, and your claims history.

Event planning businesses spend an average of $50 per month, or $597 annually, on workers' compensation insurance.

Workers' comp pays for medical expenses and disability benefits in the event of a employee injury. For example, if a party planner falls off a ladder while putting up lights and breaks their ankle, this policy would pay for their medical treatment and provide partial wages during their recovery.

Workers' compensation policies usually include employer's liability insurance. This type of coverage pays for legal costs if an employee sues their employer over an injury.

State laws often require businesses to secure workers' comp as soon as they hire their first employee, but that's not always the case. It's required in California and New York for every business with employees, in Florida for every business with four or more employees, and it's optional for most companies in Texas.

Even though workers' comp may not be required for sole proprietors or independent contractors, such as an event planner who works independently, it's still recommended. Medical bills are expensive, and most health insurance plans can deny claims for injuries that happen on the job.

The cost of workers' compensation mostly depends on the number of employees you have and the type of work they do. It's often less expensive for businesses in states that have lower healthcare costs.

Event planners pay an average of $38 per month, or $456 per year, for commercial auto insurance.

If your company vehicle gets into an accident, this policy would help pay for any damages you caused. It would also cover your legal fees if you're sued.

You can buy coverage for other risks as well. For instance, collision insurance pays for repairs if your vehicle is damaged in a collision, while comprehensive insurance covers damage to your vehicle from other sources, such as hail, theft, and vandalism.

Almost every state requires this coverage for businesses that own a vehicle, as personal auto insurance won't cover business driving. To protect personal, rented, and leased vehicles used for work, you'd need hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto policies can vary considerably. Some of the most important factors are your employees' driving records, the policy's limits and deductible, the number of vehicles you own, and the coverage options you choose.

The average cost of cyber insurance for professional services businesses, including event planners, is $123 per month, or $1,480 annually.

This policy covers expenses related to cyberattacks and data breaches. It can pay for cyber incident investigations, provide reimbursement for ransomware payments, and help with costly customer notifications, which may be required by state laws after a breach.

Cyber insurance is crucial for event planning companies that store personal information, such as clients' email addresses and phone numbers. It's sometimes called cyber liability insurance or cybersecurity insurance.

The cost of cyber insurance mostly depends on the type of business you own and the amount of sensitive information handled by your company.