Should I require liability insurance from clients?
Why require it
Even with your own insurance, you can be named in a lawsuit if someone is hurt at an event you host. Requiring clients to have liability insurance shifts the financial risk to their insurer. Most policies cover bodily injury, property damage, and sometimes liquor liability if alcohol is served.
Many venues make this a condition in their contract. Clients typically need to provide a Certificate of Insurance (COI) showing you as an additional insured. This means their policy will cover you if a claim arises from their event.
- General liability: covers injuries and property damage.
- Liquor liability: important if alcohol is served.
- Additional insured: ensures your venue is protected under their policy.
- Certificate of Insurance: proof of coverage, usually required before the event.
How to implement it
State the insurance requirement clearly in your contract. Specify minimum coverage limits—common amounts are $1 million per occurrence and $2 million aggregate, but this varies by venue size and event type. Ask for the COI at least a week before the event.
If a client can't provide insurance, you might offer to add them to your policy for a fee, or require a larger security deposit. But be cautious: allowing uninsured events increases your risk. Some venues simply don't allow exceptions.
Common mistakes
- Assuming your own insurance covers everything—it may not cover claims caused by the client's negligence.
- Not verifying the COI is valid and includes the required additional insured wording.
- Waiving the requirement for friends or small events, leaving you exposed.
