Tuesday Morning Insurance Tidbit - on Thursday - Special Events

[InsuranceMan]

Happy Thursday,

     This week’s installation of the Tuesday Morning Insurance Tidbit is occurring on Thursday as you may have noticed.  Tuesday was a bit of a CRAZY day in the land of InsuranceMan 2.0.  Suffice to say, as we all know it was election day, and yours truly has been voted in as the newest City Councilman in Sheirdanopolis!  So, among about the 1,000,206 other things I had going on that day, that was pretty big and occupied quite a bit of my time. Then there was yesterday ... oh yesterday, you seem so very long away, anyway ... A lot of interviews, blah, blah, blah.  Long-story-short, that is why we are just seeing my weekly post today, and in the afternoon no less.  But as an ongoing heading, I thought I would keep with the theme since "Thursday Afternoon Insurance Tidbit" does not have the same beautiful ring to it.

     Speaking of "to it", let's get to it.  Special Events!!!!!  We all know them, and most of us love them.  You get to get out in bigger venues, have people taste your amazing products, and often times it leads to sales.  Sales either right then and there, or it brings them to your tasting room, or you notice your products flying off the shelves quicker.  Either way, you gotta love sales!  The issue however is the special event itself.  Most venues come with a few certainties.  Usually you have to "pay to play", meaning there is usually a fee associated with having a table or space at a venue.  Whether it is a farmers market, or a bacon and something festival ('cause who doesn't love bacon?), or a larger specific type of spirits show, they usually want money for your spot.  Then there is the dreaded "insurance provision"!!!!!! ?  This is the one that can either be a non-factor, or a HUGE DEAL!  Smaller venues may ask for a certificate of insurance showing your liability limits and liquor liability limits, and they may specify that they need to be $1,000,000 occurrence, with a $2,000,000 aggregate, or they may be larger than that for some venues, or smaller.  It just depends.  Often times though, it is not the issue of the correct limits, it is the issue of the venue host asking to be named as "ADDITIONAL INSURED".  That is where the ease, or pain in the rear can come in when trying to provide that certificate of insurance they are asking for. 

     If you are with a "standard" carrier, often times there is a proviso stating that there is a BLANKET ADDITIONAL INSURED endorsement, which states (short layman version), "If someone requires additional insured status, either by written or verbal contract" then there is no issue.  The agent should be able to issue that certificate, in-house, in less than an hour and then simply notify the carrier.  Ah, this is the dream scenario, where you hear soft instrumental music playing, birds chirping, rainbows, and unicorns frolicking in green fields.  The certificate of insurance seems to appear out of thin air, float gently to the venue host, where they accept it with a loving nod and a smile.  Their smile may even have a sparkle to it with that satisfying "tink" sound.  This is how it should be, when everything is right in the world.

     Then there is the other scenario ?  You have the above scene pictured in your head, but you pick up the phone to call your insurance agent, with a smile on your face … this is going to be great!!!!!!  They answer the phone, listen to your request, and laugh in that maniacal and menacing “BWAHAHAHAHAHHAAHAH!!!!!!!!!!!” way.  What?!?!?!?  That is not supposed to happen.  Where are the unicorns, and the birds!?!?!??!!  Not today, pal!  Your agent, after laughing now takes on the voice of a demon and tells you that you are with a non-standard carrier, and they are going to charge you to add someone on as an additional insured.  You say, “But it is only for one event, one time.”  They laugh again, rubbing their hands together and tell you it does not matter.  UGH!  Could this get any worse?!?!!?  Funny you should ask …not only are they going to charge you between $100 and $150, it could take days to get the certificate you need.  “BUT I NEED IT FOR TOMORROW!!!!!!!!!!!”, you plead into the phone.  Is that the smell of Brimstone I smell??!?!?!?  You are in Special Event Hell!!!!!!

     This is something that you need to be made aware of, PRIOR TO PURCHASING YOUR INSURNACE POLICY!!!!!!!!!!!  There is nothing wrong with having your insurance provided by a non-standard carrier, heck, sometimes there are reasons beyond your control that makes it impossible for your coverage to be placed with a standard carrier, and that is ok.  No one is going to hold that against you.  You do need to know though, what kind of coverage you have and if you are going to be charged for special events.  Why does this make a difference???? Because of $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

     If you are planning on doing 12 different events throughout the year and each one is going to cost you $100 more in premium, well then, maybe that lower insurance proposal was not worth it.  Paying out $1,200 more in premium so you can attend special events is costly and you need to be made aware of it prior too.  I will say, there are way to avoid a charge, or minimize it, but InsuranceMan 2.0 cannot divulge all of his secrets here. 

     Long-story-longer, be prepared.  Know what kind of coverage you have.  Ask pertinent questions about special events and any additional charges that there may be or if they will be covered.  Again, there is nothing wrong with a charge for these exposures, but the day before you need a certificate is not the day to find out.  You need to know your policy and the details within, so ask questions.  OR, you can simply call me, and I can handle all of your insurance needs for you, and have discussions upfront and set the expectation.  I will end today saying that if you call me and let me handle your insurance needs, you will have a more euphoric experience than the picture I painted in the first scenario.  Dealing with me is like all of that wrapped into one, while you get to ride a flying Alicorn through a rainbow that is made out of your favorite alcoholic sprits … and you get to taste them all!

Best,

Aaron

aka - InsuranceMan 2.0

307-752-5961