General Liability policies are Great! However just like our Country’s Founding Fathers did not have the foresight to see Congress puking away their right to control the coinage of our money (done through the Federal Reserve Act of 1913) your General Liability policy does not always have the foresight to cover every one-off fund-raising and outreach event.

Sue a Not-For-Profit… How Dare You?!

Believe it or not when bad things happen and property gets destroyed or people get hurt or worse yet someone’s feelings get hurt, they are not going to give a crap that you have a philanthropic mission.

The general rule of thumb for our modern society seems to be Sue Everyone and Let the Lawyers Sort It Out…

So don’t count on your charitable-ness meaning a whole lot, instead protect your organization with a Special Event Policy.

Ryan, What Is a Special Event Policy?

I’m glad you asked.  A Special Event Policy provides Liability Insurance for luncheons, annual meetings, receptions, walk-a-thons, golf tournaments, seminars, celebrity beauty pageants, auctions, belching contests, jump-rope-a-thons, adult proms, or whatever else you can think of to raise money (within reason).

Isn’t That What My General Liability Is For?

No, your General Liability is designed to cover your day-to-day risks.  When you purchased your General liability policy your Independent Insurance Agent thoroughly questioned you on your daily operations and crafted coverage to meet those needs.

Events which are held infrequently and draw large numbers of individuals from outside the organization are not considered part of your daily operations.  These events are exactly why the Insurance Gods created Special Events Policies.

Do not fret, the expense for Special Events policies is usually very low relative to the exposure the carrier is taking on.  Most carriers will work with you to add coverages such as Liquor Liability as needed.  Does your organization need to pay for Liquor Liability every day? No, probably not.  But you better be darn sure you have a Special Event policy with Liquor Liability for your Margarita Mania Summer Fund-raising Egg Toss…

The Rub

I know that not-for-profit organizations need to watch every expense and buying an additional policy to cover these events feels like just more cost.  Seriously though, if you are holding a fund-raiser without a Special Event policy your next expense could be defense lawyer fees, and that is a burden that could sink your organization.

Disclaimer:

This article is for informational purposely only. There is no legal advice being suggested or proffered and the author assumes no responsibility or liability for the actions take or not taken by the readers based upon such information.

Thank you,

Ryan H.

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