Communicating with policyholders about risks around Halloween can mean everyone has a safer holiday. (Credit: JenkoAtaman/Adobe Stock)
From throwing a Halloween party to hosting a haunted house in a place of business, insurance policyholders need to think about how they will be protect themselves this time of year.
A conversation with their insurance agent before something goes wrong could go a long way toward avoiding a financial fright.
In many cases, existing insurance lines can be sufficient to protect policyholders from some common Halloween risks. Homeowners policies, Business Owners Policies, and Commercial Liability Policies go a long way toward keeping things covered.
But in some cases, beefing up those policies, or looking for some supplemental coverage is what is called for to keep a party or event safe and insured.
When it comes to a party in a policyholder’s residence, their homeowners or renters policy is the first line of defense.
These lines protect against damage guests might do to the home, like starting a fire by knocking over a pumpkin spice candle.
That’s not where their protection ends.
A medical payments provision is especially handy if a guest falls ill, or just falls, while they are at the party. If the dip had nuts and an allergic guest inadvertently ate it, going into shock, the cash payment from the medical payments provision might offer enough protection — and good will — to keep that emergency room visit from turning into a lawsuit.
And if there were a lawsuit, the liability portion will protect the policyholder.
The other important place homeowners and renters policies protect the party host is when it comes to social host liability.
Not every state recognizes social host liability, but that is the concept that if a guest becomes intoxicated at the party and then goes out and gets into an accident, the host could be held at least partially liable.
Standard homeowners and renters policies protect the host in these cases, but the limits are important. A typical policy could have a $100,000 limit, which might be insufficient in the case of a severe DUI claim. In these cases, an umbrella policy might be an important backstop.
Homeowners and renters policies also guard against damage hooligans might do to a policyholders’ home when they are out trick or treating — such as smashing a window or spray painting a garage door. They could also step in if those hoodlums happen to be the policyholders’ children, who get on the hook for some vandalism or other damage to someone else’s property.
And if the vandalism was done at a family grave site, many homeowners and renters policies offer protection. If the policy holder declared the cemetery plot as an insured location, most standard lines extend their coverage to the family place of rest.
If a policyholder wants to host a haunted house, some extra conversations about coverage might be in order.
Protecting haunted houses is essential because these are ripe for risk. Haunted houses are dark. They are cramped. They are full of people who are scared and hard to predict. Risks can range from trip and falls to assaults, and even medical emergencies. And depending on how it was constructed, there could be fire hazards or other dangers lurking behind the walls.
If the haunted house is going to be a smaller affair being held at the policyholders’ residence, the homeowners policy might be sufficient. And if they want to hold it at their place of business, their BoP or Commercial Liability policy might be enough.
But it is worth looking closely.
If the homeowner charges admissions to the haunted house in any way, that could be enough to make it a commercial endeavor, which would be excluded from the homeowners policy. And business policies sometimes have provisions limiting protection to the primary line of business, again, potentially excluding a haunted house.
When it comes to business lines, a rider may be sufficient. Though both businesses and homeowners might do well to consider a separate special events policy. There are several carriers who specialize in haunted houses, but most special events companies should be able to write a good policy.
Beyond the standard Halloween coverage, a few insurance lines protect against the more curious and whimsical — and maybe a little spooky.
For one, a Florida insurance company writes a policy to protect against alien abductions. However, the policy language does require the alien’s signature as proof before a claim can be paid out.
And one British carrier offers to pay up to $1 million if someone can prove they were attacked by a supernatural being.
So, whether the risks are from the supernatural, or are more tied to our world, communicating with policyholders about risks around Halloween can mean everyone has a safer holiday.
Michael Giusti, MBA, is an analyst for InsuranceQuotes.com.
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