Street festivals, art fairs and outdoor concerts, while fun forattendees, present liabilities to organizers and challenges toinsurance agents and their carriers.

It is important for agents to know the nuances of spectatorliability--particularly what's not covered in the general liabilitypolicy--so they can provide their clients with the proper policies.Events range from low exposures (like craft shows) to highexposures (such as block parties).

The main insurance exposure at special events is injury tospectators. Festivals, racing events, concerts and art fairs, wherelarge numbers of people are milling around, have many trip/slip andfall accident-producing conditions, such as uneven ground, loosecables and discarded food.

General liability/spectator coverage will protect the eventplanner and organizer from claim incidents. However, a generalliability policy may not cover every aspect of the event. Notableexclusions include:

o Assault and battery

o Liquor liability

o Event area or sports participants

o Fireworks displays

o Amusement rides

These exclusions don't mean that coverage is unavailable for anapplicant. It means applicants need to work with their agent toobtain all the specific coverage needed. Managing general agentshave access to numerous markets and can arrange general liabilityfor the excluded exposures.

Additional coverage options to consider include:

o Crime--protects against robbery and/or theft of money andsecurities.

o Liquor liability--for situations when alcohol is sold andserved.

o Inland marine--protects on-site property, such as soundsystems, from damage.

o Rain and weather/event cancellation.

o Terrorism coverage.

Injury to participants or any person in the event area--such asrace car drivers, mechanics, guides, clowns and entertainers--arespecial risks.

Some markets offer injury to participants (legal liability) asan optional sublimited coverage. These markets typically require aconcurrent accident and health policy be separately purchased atlimits ranging from $5,000-to-$25,000.

Special event coverage is purchased by event planners andsponsors, public entities and organizers. Vendors, performers, rideoperators, pyrotechnicians, etc., are normally required to providea Certificate of Insurance showing they have their own liabilitycoverage and that name the applicant (such as the event planner) asan additional insured.

Multiple additional insureds--including facilities and premisesused by event planners, but owned by others--are available at anominal cost.

An agent should never presume the event planner or theparticipants know about the coverage needed. Agents should gatheras much information as possible regarding the event to ensure thatcoverage is all encompassing and that the quote is accurate. (Seeaccompanying infographic for some essential questions.)

Most events are usually short-term. Insureds can purchasepolicies that range from a few hours for meetings, to several daysfor festivals. The cost of insurance is usually a flat charge to arate per-spectator.

With the proper coverage, agents can protect their clients soeveryone can enjoy the summer activities.