Whether you are an independent event planner booking a venue, an executive assistant planning your company’s next event, or a couple hiring a planner for your big day, you will most likely come across event planner insurance and certificate of insurance (COI) requirements. This paperwork can come with confusing terms and small mistakes can cause delays, but some guidance on the basics and a simple workflow can help. Let’s take a look at how to get this paperwork done right the first time and cut down on the stress.

Why Does Event Planner Insurance Get Brought Up?

Event planning insurance coverage is normal. A lot of time and effort goes into planning a big event and the goal is for everything to go as close to plan as possible, but unforeseen incidents can and do happen. Accidents, natural calamities and vendor no-shows can not only derail enjoyment of an event, it can have a financial cost too. Event insurance is there to protect event organizers, hosts and attendees from these financial risks.

Venues and clients want clarity on who is responsible if something does go wrong with the event. This is why it often shows up early in the contract phase of booking a venue. Also, each state has different rules governing event liability and insurance requirements and cities, like Minneapolis have requirements too.

The Paperwork Trio

Event planners deal mainly with three components of paperwork when booking a venue event. These include contract terms, certificate of insurance (COI) and vendor compliance.

Contract Terms

This is basically the terms of the agreement to secure the venue and outlines:

• Rental fees, deposits and payment schedule
• Cancellation policies
• Rental date and access time window
• Guest capacity
• Vendor restrictions
• Liability and insurance requirements
• Any rules around décor, space usage and included equipment.

Certificate of Insurance (COIs)

A certificate issued by your insurance company that shows proof of insurance and the basics of your coverage.

Vendor Compliance

A document issued to third-party vendors (caterers, DJ’s or bands, planners, etc.) that ensures they meet the operational standards of the venue, including safety, legal liability and security.

Delay Prevention: The COI Basics

Filling out your paperwork, submitting it and checking it off your list is satisfying. But, having that paperwork get rejected or delayed only adds more to your do-do list. There are some basics of COI’s that when understood and addressed can prevent 90 percent of delays.

What is a COI?

The certificate of insurance for event planners (COI) is proof that you have active coverage, not the full policy of that coverage. Event planner liability insurance policies cover third-party bodily injury and accidents, including vendors, guests, or attendees, damage to rented equipment or venue property, legal expenses and possibly personal injury. The COI shows that you have this coverage and how much of it is covered by your insurance.

Typical Information on a COI

A COI for event venue will show basic information about your insurance, including:

• Name of insurer
• Name of insured
• Policy term and limits

COI’s are primarily issued to show that insurance coverage is active at a certain point in time. It acts as a snapshot of what the coverage is at time of issuance for a certain event at a certain time and place, which means they do expire.

COI’s can expire or need to be reissued if:

• An event is postponed
• The insurance is set to renew before the event
• A change in coverage requirements
• An error in filling out the form
• An additional insured needs to be added.

One simple rule to follow to cut down on reissuance is to match your COI to the full event window, including your load-in and load-out windows.

The Plain English of Certificate Holder Vs. Additional Insured

These two terms are bound to come up in COI’s and often result in common misconceptions, so let’s define them and how they are typically used.

A certificate holder is the entity who receives the COI from the insured business owner. As a planner the venue will ask for a COI, which will make them the certificate holder.

The additional insured on a COI refers to an entity who is added to the insurance policy for the duration of the event through an endorsement. It gives this named entity protection under the policy for certain claims.

This can get complicated when venues request to be listed as additional insured, not just the certificate holder. This requirement is a transfer of risk that protects the venue from liability due to accidents, injuries, or property damage that may occur during the event.

The Importance of the Description Box

COI forms often contain a description box that is used by venues for specific wording that they require on the COI’s you submit. This can include wording as an additional insured and other endorsements, waivers, or clauses.

Obtain this wording from the venue and use the box to capture this information exactly. Not following the specific wording or leaving out any of the language can cause your COI to be rejected and delays submission.

The What and Why of Venues Usual Requirements

Understanding common terms for the what and why of venues usual requirements can assist in completing your insurance paperwork cleanly and with less stress.

General Liability

General liability insurance for events is the baseline requirement and shows what this insurance is meant to cover at a high level.

Liquor Liability Insurance Event

If alcohol consumption, whether sold, served, or facilitated, is a part of your event, it will most likely change the requirements of event insurance. It can also change who typically needs it, whether venue, caterer or host, depending on the event’s structure.

Vendor Insurance Requirements

Venues will most likely want vendors insured in addition to the planner to transfer risk from accidents, damage, or lawsuits while also ensuring vendors are professional and legitimate.

Some other typical things to keep your eye on when looking at insurance is to understand what can trigger the need for higher liability limits. This can happen with large guest counts, certain types of staging or special activities. These higher limits can affect event planner insurance costs.

Planner, Client, Vendors: Who Should Carry What?

The Planner

As a business owner, an event planner will want event planner insurance year-round, not only for certain events at certain times. This is continuous coverage that protects your business assets from lawsuits, injury, or damages. This is important for any professional business to safeguard against costly claims that can bankrupt your business. All planning operations are the responsibility of the event planner, not the venue, so insurance coverage is protection.

The Client or Host

Some venues require short-term or one day event insurance for private events such as large weddings, corporate conferences, or festivals and is especially common if alcohol is served. It can be required to protect against financial loss related to liability claims, property damage, or cancellations.

Vendors

Vendor insurance requirements are also common for an array of vendors, including caterers, entertainers, AV and equipment rental and production companies, florists, decorators, photographers/videographers, transportation and security. From an insurance standpoint, the work some vendors do for the event can be considered to carry risk for the venue and proof of adequate insurance is often required.

A Clean Approach to Certificates of Insurance

The cleanest approach to COI’s for any event is for each vendor to cover their own operations, while the planner coordinates proof of that coverage.

A few simple steps on how to request a COI from a vendor can make this a smooth process. Make sure you send a written request about 5-10 business days in advance of the deadline that clearly states the COI requirements, including coverage, limits and any additional insured entities.

A Clean COI Workflow for Planners

Incorporating these steps into your event insurance requirements checklist can make your paperwork smoother and cleaner.

Step 1: Collect Venue Details

Before requesting anything make sure you have the exact spelling of the venue’s legal name as well as the venue address, event date(s) and time window, including set up and take down. Also double check the submission email and deadline.

Step 2: Add a COI Required Column to Your Vendor List

Make tracking your COI requirement for vendors on your vendor list by adding a “COI Required” column where you can easily track the process. Vendors requiring a COI can include catering, bar service, equipment rentals, florists, entertainment (DJ/bands) photographers and videographers, AV specialists, security and transportation.

Step 3: Use a Template to Request COIs

Create a consistent email template with all COI requirements, including required wording, event window and where to send the COI to make the request process consistent and reliably accurate.

Step 4: Verify with a Quick Checklist

Adding a step to verify the COI information can save you time and possible headaches down the road.

Make sure:

• The name matches the insured party
• Dates cover the full event window
• Liability limits match the contract requirements
• The venue is listed correctly as the certificate holder and, if needed, the additional insured
• The description box includes all the required wording provided by the venue

Step 5: Keep It Organized and Accessible

Once you have everything documented, store it all in one place with clear, consistent filenames. This gives you a quick index list for day-of access when you are sure to have many more balls in the air. Knowing where paperwork is and having it quickly accessible can equal peace of mind.

Knowing what questions to ask of a venue upfront so you have all the information you need to plan and book your event should also be added to your workflow. It’s all a part of doing it right the first time so the time on paperwork is minimalized and planning is maximized.

Why a COI Gets Rejected: Common Mistakes

As standard paperwork COI’s also can have common mistakes that occur that are cause for most rejections. Remaining aware of these mistakes as you fill out your paperwork can cut down on the stress of completing it.

Common mistakes include:

• Wrong venue name – often the difference between the venue’s trade name and legal name
• Wrong address
• Dates cover the event but omit load-in and load-out time
• The wrong party listed as the insured–often confusion between listing the client, planner and vendor
• Missing additional insured language when required
• The COI sent as a screenshot
• The document being sent incomplete

Public Permits and Block Events: A Few Notes on Minneapolis

When it comes to special event insurance, Minneapolis, like most cities, has a list of requirements. Block or city permitted events or those on city property require the City of Minneapolis be listed as an additional insured with minimum general liability coverage of $1,000,000. Special event insurance can have its own required language and submission process and a liquor liability endorsement is required if alcohol is served. Policy coverage must also be active for the entire duration of the event.

Contact the Lumber Exchange for more details on planning your event and on their venue requirements for event planner insurance.

FAQ

Do planners really need event planner insurance, or can the client handle it?

Event planning is a business and therefore requires business insurance. Client insurance will cover their specific event, but you need insurance to cover your business liability and property and possible third-party injury.

What is a COI and why do venues insist on it?

A COI is a document that officially states you have active insurance coverage. Venues almost always insist on it to mitigate financial risk.

What is the difference between certificate holder and additional insured?

A certificate holder receives the COI as proof of insurance in good standing, but is not covered by the insurance. An additional insured is an entity that is added to the policy that grants specific coverage and protection under the policyholder’s insurance.

Should the COI cover load-in and load-out?

Yes, the COI should cover the full event time window, including load-in and load-out.

If vendors have insurance, why is the planner still asked for proof?

Venues ask that both vendors and planners have proof of insurance as a risk management tool to protect from liability due to damage or injury.

When does liquor liability matter?

If the event encompasses the selling, serving, or facilitating of alcohol consumption, then a liquor liability clause in the insurance policy matters as a protection against any damage related to intoxication.

How early should COIs be requested for a spring or summer event?

COI’s should be requested as soon as contracts are signed, ideally at least 30 to 60 days prior to the event. While brokers can issue COI’s within 1 or 2 business days, delays can occur.

What details does an insurer need to issue a COI correctly?

Insurers require a policyholder’s exact legal name and policy numbers along with specific coverage type, policy limits and the effective date of insurance and the expiration. Also, the contact information of the certificate holder, including precise name and address and any additional insured endorsements are required too.

What should be done if a COI is rejected by the venue?

First review the reason for the rejection and then contact your insurer to request an amendment to the COI to meet the requirements and remedy the rejection circumstances. Then, resubmit the document. Common reasons for rejection include a mistake in the venue name, insufficient coverage and missing endorsements. Double-check these points before submitting your COI.

Where can venue-specific rules and submission steps be confirmed for LXMPLS?

You can find specific rules and submission steps for the Lumber Exchange Event Center in Minneapolis on the website under Rules and Regulations.