Wedding venues are expected to have a banner year in 2021 thanks to pent-up demand from couples who had to reschedule their 2020 ceremonies. As we move into the most popular months for getting hitched, wedding venues in Pennsylvania and Maryland are opening back up as social distancing and capacity restrictions are lifted. Whether you are new to using your location as a wedding venue or have years of experience, this article offers pointers to reduce your risk and liability.
Can Your Location Be Used as A Wedding Venue?
Once upon a time, most couples were wed in places of worship. Today's twosomes often prefer unique destinations, such as orchards, wineries, and rustic barns. If your business is located in a gorgeous locale or has a unique structure and you are thinking of hosting weddings, there is a lot to consider, starting with zoning. Most country businesses are zoned for agriculture, so you will need to find out if adding a wedding venue via a zoning variance is possible. Before investing money into your new venture, you will also want to make sure all structures can pass your state's building performance standards. For example, many considerations need to be made when bringing a barn up to code for a wedding venue. In addition, if the premises is being used in a way that it was not designed for, it is likely that your insurance policy would need to be amended.
4 Insurance "Must Haves" for your Maryland or Pennsylvania Wedding Venue
Commercial Property Insurance - This insurance protects your organization's physical assets—buildings and their contents as well as exterior features such as signs—from fire, theft, storms, and other risks.
General Liability Insurance - This coverage transfers your financial risk by helping cover losses that your business suffers caused by bodily injury or property damage.
Liquor Liability Insurance - General liability excludes claims of bodily injury or property damage if you sell, serve, furnish, distribute, or manufacture liquor. Many couples include liquor in their event. Liquor liability will protect you if an intoxicated person leaves the wedding and hurts someone. If you are serving or furnishing alcohol at the venue, make sure liquor liability is part of your protection plan.
Workers' Compensation Insurance - This policy provides wage replacement and medical benefits to employees injured while on the job. State law requires workers' compensation coverage if you have employees.
Insurance Requirements for Your Customers
Wedding Liability Insurance Policy - A contract signed by both parties is an absolute must. In addition to recording what each party has agreed to do for and with each other, it is a legally binding document that puts a risk transfer method in place. Risk transfer is an important way to protect your business because it ensures you are not held responsible for errors or mistakes made by your customers or their vendors. Part of this transfer can be done by contractually requiring that your customers have a wedding liability insurance policy. This policy gives liability protection to your customers for such things as property damage and bodily injury, meaning they have funds to pay for damages they caused at your location. Take it a step further and require customers to add your venue as an Additional Insured on their wedding liability policy. By doing so, they are sharing their insurance limits with your business. Require that they provide proof of wedding liability insurance with additional insured status in the form of a certificate of insurance and keep that on file. It will be vital to have an attorney review the contract before using it with your customers.
Wedding Postponement Insurance — This insurance provides reimbursement for losses and expenses if sudden illness, severe weather, or any circumstances beyond the couple's control forces them to postpone the wedding.
Host Liquor Liability Insurance - It's not unusual for wedding guests to get tipsy during a reception. Now imagine the liability to your business if one of those guests caused an accident because they were driving under the influence after drinking too much at your venue. Even if you have your own liquor liability policy, make sure every customer's insurance policy includes Host Liquor Liability, which protects against alcohol-related accidents.
Insurance Requirements for Vendors
It's not just the couple renting your venue who need special liability insurance. Any of their vendors who you allow onto your property should have it also. Liability and property damage insurance protects your venue and your customers from certain losses. Request a certificate of insurance from every vendor and keep those in your file with the signed contract. If you're not serving alcohol, but a vendor, like a caterer, is, they should also show liquor liability on their certificate of insurance.
Free Quote on Insurance Coverage
The correct insurance will protect your business from risk and financial loss. For a free quote on the insurance coverage needed for wedding venues, contact an insurance specialist at Keller-Brown Insurance Services today. You can count on the right coverage at the right price from us because we are an independent insurance agency working with top-rated insurance companies.
