Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Apr 3, 2022

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When planning a special business event, community event, convention or some other one-time or limited time business project, your first item of business should be obtaining temporary business insurance.

Even the most cautiously planned business events or short term business projects can be undone due to unexpected situations arising. Fire, auto accidents, and natural disasters like windstorms are just a few of the things that can derail an event. If you’re a full-time business owner, these risks only multiply. A business owner has to worry about liability, property damage, medical expenses, and much more on an everyday basis. If you don’t have the right business insurance from the start, you could end up losing your business or even being sued.

The right kind of insurance cover helps to alleviate the burden and can save one from potential bankruptcy. This applies to major disasters and everyday claims like a break-in, worker injury or auto accident, or flooding of certain facilities.

Compare rates on business insurance polices by entering your zip code into our quote comparison tool above!

How Much Liability Coverage Do Business Owners Need?

Liability coverage is one of the most important types of coverage any business requires. Whether it is for specialized one-time events or long term businesses that have to deal with clients, one is always exposed to lawsuits arising out of injury caused at the place of business.

Short-term liability insurance is one of the first insurance losses that a business must protect itself against when hosting an event. However, to get it, one has to meet certain criteria before they can be eligible.

Below is some more information:

  • The event attendance cannot exceed 12,000.
  • If the event is for multiple days, they must be on consecutive days and can’t last for more than ten days.
  • A single location must be used.
  • The location can’t be owned by the person being insured.

In general, such a short-term liability insurance policy will protect against bodily injury as well property damage, but the specifics will vary from issuer to issuer. Just as you would with an auto policy, you should always compare premium quotes from different insurance companies.

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How Can You Get The Right Short Term Coverage?

If one is in search of business insurance that covers for a limited time only because the business they are going to be carrying out is one of short duration only, then they will not be able to find a basic type of coverage. The standard types of insurance company coverages are available for regular businesses that insure annually. While there are insurance covers for short term business projects, the project owner will have to shop for insurance on a project-to-project basis.

The best way to approach such an insurance cover would be to first decide exactly what coverage is needed, then go online and shop around for a company providing a short-term policy at a cost that is mutually agreeable.

The bottom line is that the coverage will have to be made-to-order in accordance with the location of the project, industry and the demands of the client. Since each project is unique, every business insurance policy will also be different.

Risks Must be Evaluated

Each new project will require that the risks involved are assessed by someone who has the skills of pinpointing the potential problems. Usually a specialist is hired to determine the risks that will be involved, and he is someone who has the experience and know-how of things that will affect the project.

In addition to having a detailed understanding of the work involved, this specialist must be aware of the legal, financial and insurance aspects of the project also.

Even the most well-versed manager will not be able to come up with an all-embracing analysis that takes into account all the possible loss factors. It is equally impractical to expect to find an insurer that will be willing to insure every event and risk possibility.

The reality is that not all risk factors will be covered in any short term business insurance policy. The job then boils down to singling out the few potential risks that are potentially the most threating.

Biggest Risks

One of the biggest threats to any project is the problem of the project not being completed on time and thus running up costs. Delay risk is an important coverage that protects against loss due to one of the integral parties connected with the project. Even if all of the subcontractors do outstanding jobs, just one contractor not holding up their end can cause major problems.

A hold harmless clause will make vendors liable for any third party claims that may come up due to their shortcomings. Material damage coverage takes care of material loss that may arise out of any fires, vandalism, theft, etc. Once the major risks have been singled out, it is time to visit different providers that specialize in risk coverage and see what they have to offer.

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All the different types of business insurance policies available can become confusing; an easier way to remember is to keep in mind that they cover four basic components: property, liability, people or income.

  • Property covers any machinery, vehicles or building that might be used in the business, and provides protection in case one of them is the root of some problem.
  • Liability protects one against mistakes that can cost a business dearly if the company is found liable.
  • People who are employed by a business are the crux of that business and as such, have to be protected. Policies having to do with workers compensation, health and life should be provided in case a worker is unable to perform.
  • Without a source of income, a business can’t survive. In case of some disaster which interrupts the functioning of a business, income stops. In such an event, the business has to be protected. Business interruption policies take care of this and cover for income that could have been earned had the business been operating.

Insurance coverage is something no business can do without. Going through the different options available and deciding which ones are most necessary for a given business helps to not only provide protection, but peace of mind as well.