Street festivals, art fairs and outdoor concerts, while fun for attendees, present liabilities to organizers and challenges to insurance agents and their carriers.

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

The main insurance exposure at special events is injury to spectators. Festivals, racing events, concerts and art fairs, where large numbers of people are milling around, have many trip/slip and fall accident-producing conditions, such as uneven ground, loose cables and discarded food.

General liability/spectator coverage will protect the event planner and organizer from claim incidents. However, a general liability policy may not cover every aspect of the event. Notable exclusions 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 an applicant. It means applicants need to work with their agent to obtain all the specific coverage needed. Managing general agents have access to numerous markets and can arrange general liability for the excluded exposures.

Additional coverage options to consider include:

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

o Liquor liability--for situations when alcohol is sold and served.

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

o Rain and weather/event cancellation.

o Terrorism coverage.

Injury to participants or any person in the event area--such as race car drivers, mechanics, guides, clowns and entertainers--are special risks.

Some markets offer injury to participants (legal liability) as an optional sublimited coverage. These markets typically require a concurrent accident and health policy be separately purchased at limits ranging from $5,000-to-$25,000.

Special event coverage is purchased by event planners and sponsors, public entities and organizers. Vendors, performers, ride operators, pyrotechnicians, etc., are normally required to provide a Certificate of Insurance showing they have their own liability coverage and that name the applicant (such as the event planner) as an additional insured.

Multiple additional insureds--including facilities and premises used by event planners, but owned by others--are available at a nominal cost.

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

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

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