The Coverage Gap: When to Consider Special Event Insurance


If the community is hosting a large event, such as a summer fair with rides, food trucks, or live entertainment, it’s likely wise to purchase special event insurance. These policies are customizable, short-term coverages that fill gaps in standard HOA policies, including:


• Bodily injury or property damage


• Cancellation due to weather or other unforeseen issues • Equipment rental coverage • Liquor liability


• Additional insureds (vendors, performers, venue)


Special event policies are relatively affordable and can be tailored to the size and scope of the gathering.


Risk Transfer: Using Vendors and Waivers


One of the smartest strategies for managing risk is transferring it; and that’s where vendors, contracts, and waivers come into play.


Hire Insured Vendors Only


Any outside vendor – from face painters and food trucks to live musicians – should be:


• Licensed • Insured


• Willing to name the HOA as an additional insured on their policy


• Willing to name the board of directors, its employees and agents as additional insured on their policy


Require Contracts and COIs


Always have a contract that clearly outlines responsibilities, indemnification clauses, and includes a Certificate of Insurance with the HOA, its board of directors, employees and agents named.


Use Liability Waivers


For more physically risky activities like inflatables, climbing walls, or swimming competitions, ask participants (or their guardians) to sign liability waivers. These don’t eliminate risk entirely but do show due diligence and can reduce potential legal exposure.


Other Best Practices to Minimize Risk


Even with the right insurance, prevention is always better than payout. Here are some smart practices:


• Designate an Event Coordinator: This person can oversee setup, vendor compliance, crowd control, and enforce safety measures.


• Do a Pre-Event Safety Walkthrough: Check for tripping hazards, electrical issues, or access concerns.


• Communicate Rules Clearly: Distribute or post event guidelines ahead of time; especially about alcohol, pet policies, and pool supervision.


• Enforce Age-Appropriate Usage: For playgrounds and inflatables, make sure kids are playing on the right equipment for their age and size.


Consult Your Broker—Early


Before any event planning gets too far along, consult your insurance broker or agent. They can review your existing policies and recommend whether a rider, endorsement, or standalone policy is necessary. A proactive approach is far cheaper than dealing with an uncovered claim.


Conclusion: Fun with Forethought


Summer events can be a huge boost to community morale, but they’re also a time when HOA and condo boards must balance fun with responsibility. Understanding where your insurance ends and where special protections begin is key to enjoying the season with peace of mind.


Before the grill gets fired up or the pool party playlist starts, take a moment to check your coverage, get the right vendors in place, and build a risk management plan. Your residents will thank you and so will your insurer.


Sidebar: Quick Insurance Checklist for Summer Events 


 Review general liability policy for exclusions (fireworks, alcohol, inflatables)


 Contact broker to assess coverage needs  Require COIs from all vendors  Name HOA/condo/co-op as additional insured


 Include specifically the board, its employees & agents as additional insureds


   


 Post safety rules clearly  Use waivers for high-risk activities  Consider event-specific insurance as needed


  


20 | COMMON INTEREST®


• Summer 2025 • A Publication of CAI-Illinois Chapter By Jake N. Khakis, CAI Staff Writer


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