Banquet halls are known for the incredible events they host from wedding receptions to anniversary parties, bar mitzvah or bat mitzvah to celebrations of life, corporate events, networking events etc. But operating a banquet hall comes with risks. That’s where banquet hall insurance comes in. With the right insurance policy, you can protect your banquet hall business from everyday risks like property damage and general or liquor liability claims. Keep reading to learn more about banquet hall insurance, including how ALIGNED can help you find great coverage at a competitive rate that is custom built to meet your needs, preferences and budget.
Banquet Hall Insurance 101
Banquet hall insurance is effectively a number of special commercial insurance products that are packaged together and designed to protect banquet halls from the unique risks they face. After all, dealing with a serious lawsuit or major property damage from a natural disaster can wreak havoc on a business and a balance sheet. But with banquet hall insurance, you can get through these tough times by accessing the financial resources of the insurance company to help pay for things like legal expenses, settlements, judgements, repairs, replacement of property etc.
Please note that many banquet hall insurance policies cover a wide range of events, including but not limited to weddings, bridal and baby showers, fundraisers, charity and non-profit events, exhibits and trade shows, holiday parties, family and school reunions, and corporate events and meetings and it’s important to disclose and ensure your insurance company is clear and comfortable with the full scope of events being held at your banquet hall as occassionally high risk events may require special extensions or formal approval from underwriters if they are materially different that the normal course of business.
The right coverages for your banquet hall
Banquet hall insurance policies may feature some or all of the following coverages and all are recommended:
- Commercial general liability insurance: Commercial general liability coverage, or slip and fall insurance, can protect your banquet hall from third-party bodily injury and property damage claims. For example, if an event attendee slips and falls on a wet dancefloor and sues you, your insurance provider might cover the cost of any legal fees and medical expenses.
- Product liability insurance: Product liability insurance might be part of your commercial general liability coverage, and it is important if you sell goods or products (including food and beverages) on-site. For example, if your banquet hall has a kitchen that makes and serves food, you could be held liable if a guest falls ill after consuming your food. But if they decided to bring a lawsuit against you, your insurance provider would help cover the costs.
- Commercial property insurance: Commercial property insurance covers your banquet hall’s physical property and any business-related contents inside of it, such as furniture or kitchen equipment, if they are damaged by an insured peril, such as a windstorm, fire, theft, water damage, or vandalism.
- Liquor liability insurance: If your banquet hall serves alcohol to guests, liquor liability insurance is a must. This critical coverage can help pay for the cost of a lawsuit if someone brings a third-party claim against your business alleging injury or property damage due to an intoxicated patron that consumed alcohol at your banquet hall prior to causing the damage.
- Cyber liability insurance: Lastly, if your banquet hall uses an online booking system in which sensitive client information is stored, purchasing cyber liability insurance might be a wise choice. If your system is ever hacked or breached, your insurance company will pay for any associated costs, such as credit monitoring, client notification, and more, under the cyber liability insurance portion of your policy.
How Much Does Banquet Hall Insurance Cost?
Each banquet hall is underwritten based on it’s unique characteristics and priced accordingly, but key factors insurance companies consider when preparing a quote for a banquet hall insurance package are:
- Square footage of the facility
- Projected annual revenue for the next 12 months
- Number of events per year
- Type of events
- Construction materials used to build the facility
- Historic insurance claims
- Annual liquor receipts
- Annual food Receipts
- Replacement cost of the facility and contents
- Degree of risk management in place. ex. contracts, requirements for third parties to purchase or provide evidence of their own insurance
Get ALIGNED with comprehensive banquet hall insurance.
Contact ALIGNED to learn more about how banquet hall insurance can protect your business, or click here for a free quote.
