Organising an event, whether it’s a trade fair, a wedding, a concert or a corporate conference, means taking on risks towards third parties that are often overlooked until something actually goes wrong. Event insurance protects the organiser against material, personal or financial damage that the activity may cause to attendees, staff or the venue, and in many cases it’s an essential requirement for obtaining the local council’s permit to hold the event.
In this article we look at what event insurance is, when the regulations require you to take it out, what it covers, and what other complementary policies (such as cancellation or accident cover) you might need.
What is event insurance and what is it for
Event insurance is a civil liability policy designed to cover, for a set period (usually the set-up, event and take-down days), the damage that the organised activity may cause to third parties: the attending public, contracted staff, suppliers, or even the venue or public space being used.
Unlike a company’s general civil liability insurance, event insurance is taken out “by the day” or for a one-off activity, which makes it especially useful for associations, local festival committees, town councils, event management companies or individuals holding a single event a year.
When is event insurance mandatory
Public entertainment: a matter of regional regulation
In Spain, powers over public entertainment and recreational activities have been devolved to the regional governments. This means there is no single national law governing event insurance; instead, each region (Catalonia, Madrid, Andalusia, etc.) has its own Public Entertainment Act. This regional legislation sets out the requirement to take out civil liability insurance and dictates the minimum sums insured, which are usually tiered according to the venue’s capacity or the activity’s level of risk.
Local council requirements
In practice, the vast majority of town councils require proof of an active civil liability insurance policy as a non-negotiable condition for granting a licence to occupy public space, open a fairground, or use non-permanent facilities. It’s therefore essential to check the bylaws of the municipality where the event will take place and cross-reference them with the minimum requirements set by that region’s law.
What civil liability insurance for events covers (and doesn’t cover)
Damage to third parties and civil liability (the main policy)
The civil liability policy handles compensation for bodily injury, material damage or financial loss caused to attendees or third-party property when the organiser is at fault (for example, if a poorly secured speaker falls onto the crowd, or someone trips over a loose cable). It also covers legal defence costs and bonds.
Other additional cover within civil liability
Depending on the insurer, additional cover can be included, such as employer’s liability (for accidents involving workers or subcontractors), post-completion liability (issues arising from take-down works), or subsidiary liability.
Complementary insurance: don’t confuse civil liability with cancellation or accident cover
It’s a common mistake to assume that civil liability insurance covers absolutely everything. There are critical risks in organising an event that require separate policies:
- Cancellation insurance: civil liability won’t refund your money if it rains and you have to cancel the event. To protect fixed costs already paid out (artists’ fees, hire costs, advertising) against weather, strikes or no-shows, you need a specific cancellation policy.
- Accident insurance: civil liability only applies when the organiser is at fault for an injury. If an attendee suffers a heart attack, or twists their ankle by pure accident, civil liability won’t respond. For certain events (such as sporting events), the law requires organisers to take out separate accident insurance for participants to cover these accidental injuries.
How to choose the right sum insured
The civil liability sum insured should be tailored to the expected capacity, the type of activity and the event’s specific risk profile (for example, a concert with a stage has a different risk profile to a food fair). Taking out cover below the minimum required by regional law can prevent you from obtaining the council permit, while insufficient cover relative to the real risk leaves the organiser exposed to covering the difference from their own assets in the event of a serious claim.
How much does event insurance cost
The price depends on variables such as the length of the activity (from one day to several weeks), the maximum capacity, the nature of the event, the sum insured and the cover taken out. As these are such specific risks, it’s advisable to request a personalised assessment from an insurance broker who can design a tailor-made package combining, where necessary, civil liability, cancellation and accident policies.
Find out more about our civil liability insurance for businesses and all the cover it includes.
Frequently asked questions
Do I need event insurance if my activity is free or for charity?
Yes. The requirement to hold civil liability insurance doesn’t depend on whether the event generates income, but on the risk to third parties and the requirements set by the town council or regional government for granting the permit.
Does event insurance cover the organisation’s volunteers?
Watch out for this one: Spain’s Volunteering Act requires organisations to take out a specific accident and civil liability policy for volunteers. A general event civil liability policy is usually not enough to cover accidents suffered by volunteers during their work. A dedicated named policy is required for them.
Can I take out insurance for a single day event?
Yes, this is one of the main advantages of this type of policy: it can be taken out for specific days, matching the exact dates of set-up, the event itself and take-down, without needing to keep an annual policy running.
What happens if I don’t take out the mandatory insurance for my event?
Besides the obvious risk of not obtaining the council licence or facing severe administrative penalties, without insurance the organiser is left exposed to answering with all of their personal and business assets for any claim over damage or injury.
Insure your next event without surprises
Before confirming the date and capacity of your next event, check what sums are required under your region’s regulations and your local council’s rules, and assess all the risks (civil liability, rain, accidents). At Ambler Correduría de Seguros we compare the options on the market and help you design an event insurance programme tailored to your activity and budget. Request a no-obligation quote.