Franchisors hosting annual franchise events like conferences or summits need a dedicated event liability policy. Learn what coverages are required, how to get them, and how to ensure your venue’s insurance requirements are met.

Key Takeaways

• Do not rely on your existing General Liability policy — it likely doesn’t extend to events.
• Obtain a dedicated event liability policy designed for hosted events.
• Liquor Liability is essential if alcohol is served (even complimentary).
• Event insurance is typically inexpensive, often under $1,500 for most franchisor events.
• Policies are short-term (from one day to a week or more).
• Start the process at least 30 days before the event to meet venue requirements.
• Always have your broker review the venue’s insurance requirements before signing contracts.

Overview

Franchisors frequently host large gatherings — like the Franchise Leadership Summit — to unite franchisees, suppliers, and partners. While these events strengthen relationships and drive collaboration, they also introduce unique risks that your corporate or franchising entity’s existing insurance policies typically do not cover.

A dedicated Event Liability Policy protects the franchisor from event-specific exposures such as bodily injury, property damage, or liquor-related claims.

Why Your Current General Liability Policy Isn’t Enough

Your General Liability (GL) policy is designed for ongoing operations, not one-time events. Most GL policies include participant limits (often capped at 100 attendees) and exclude coverage for external venues, vendors, or alcohol-related risks.

Common uncovered exposures include:

• Guest injuries or accidents
• Property damage to the venue
• Alcohol service incidents
• Vendor or exhibitor negligence
• Damage to rented equipment or temporary structures

Event-Specific Coverage You’ll Likely Need

1. Event General Liability

Protects against bodily injury, property damage, and accidents during the event. Most venues require $1M per occurrence / $2M aggregate minimums. The venue should be listed as an Additional Insured.

2. Property Insurance

Covers signage, electronics, or rented materials used at the event.

3. Workers’ Compensation

Applies if employees or contractors are setting up or assisting during the event.

4. Auto Insurance

Required if vehicles (company-owned or rented) are used for logistics or transport.

5. Liquor Liability

• Complimentary drinks: Liquor Liability is strongly recommended.
• Charged or sold drinks: Liquor Liability is required. This protects against claims resulting from intoxicated guests.

Typical Event Insurance Costs

Event liability policies are short-term and affordable, with pricing based on attendee count, event duration, and risk factors like alcohol service.

Typical parameters:

• Coverage period: 1 day to 1 week (or more)
• Attendee ranges: 100–500, 500–1,000, 1,000–2,000, etc.
• Typical cost: Usually under $1,500, sometimes up to $2,000 for larger events

Disclaimer: Pricing varies by event size, venue, activities, and insurance market conditions. The figures above are general estimates and should not be relied upon for budgeting. Consult your insurance professional for accurate costs and coverage.

How to Obtain an Event Liability Policy

You can obtain event coverage through:

• Your specialized insurance broker (recommended)
• RIKOR, which offers event liability policies for franchisors
• Online providers, though using a broker ensures compliance with venue and liability requirements

The process is simple:

• Complete an application – includes event details such as: number of attendees, event duration and location, alcohol service (if applicable), and event type and activities.
• Receive a quote – typically within one week.
• Bind coverage and pay upfront – policies are usually paid in full at the time of purchase.

Timing and Coordination

Plan ahead to avoid last-minute issues with venue approval.

• Start the process at least 30 days before the event.
• Obtain the venue’s formal insurance requirements early.
• Have your broker review all venue requirements to confirm your policies meet them.

This ensures your Certificates of Insurance (COIs) are ready and compliant before contracts are finalized.

Venue and Vendor Requirements

Most event venues will request proof of coverage before granting access. Be prepared to provide:

• A Certificate of Insurance (COI) listing the venue as an Additional Insured.
• Proof of minimum liability limits (often $1M per occurrence).
• Evidence of insurance for all vendors, exhibitors, or suppliers attending.

Final Thoughts

Your franchise conference is a cornerstone of your brand’s culture and growth — make sure it’s protected. A dedicated Event Liability Policy provides affordable, short-term protection that satisfies venue requirements and shields your organization from unnecessary risk.

With proper timing, broker review, and the right coverage, your event can remain focused on what matters most: strengthening your franchise system.