As a business owner you do a lot of work in your operating hours. However, there are times when you might stay open late for events. For example, you might volunteer to host a community meeting in your store. Or, you might have a party there to mark a business milestone. This is an exceptional circumstance, so you might wonder if you have appropriate insurance for the occasion. Particularly, you’ll want your liability coverage to apply to the special situation. Let’s take a closer look. Commercial general liability (CGL) insurance often does apply to special events inside the business. However, you’ll still need to ensure your policy has appropriate protection included. Speak to your agent about starting this process. 

CGL Policies 

Most business owners carry a CGL policy. It can help the business cover the costs of damage that other people sustain while interacting with the business. So, if a guest were to visit your store for an event, fall, break a leg and then sue, then it is this coverage that could help. The policy might help the injured party settle with you to cover their medical costs. It might also help you cover your own legal fees that might accumulate. 

Most businesses carry this coverage. However, many people think only about how it will apply to normal business operations. What will happen if you have a special event in the business, instead, after hours? 

Coverage for Special Events

Maybe you decide to celebrate the retirement of a coworker, and hold a party after you close the store for the day. During the event, someone gets hurt. In this case, you might wonder if your CGL policy will cover you? 

• Often, most functions occurring in the business will have coverage. Though you might not be actively working, there were still liability risks present. Risks exist all the time, and policies apply around the clock. 

• If you have an event off of the business premises, you might need additional coverage. Special events have unique liabilities and they might merit special event insurance. 

• Should an employee get injured at a special event, they might qualify for workers’ compensation instead of CGL coverage. However, there is a catch. If the employee was at the event as a guest and not as a worker, then they might not be able to get workers' comp. If they worked the event, however, they might.

If you plan to hold a significant event in your business, review your CGL policy. If the event is unique or niche, ask your agent if you need extra coverage.