When it comes to requiring liability insurance from renters, venues typically fall into one of three categories: (1) Not required, (2) Required (most common), and (3) Required with specific endorsements.
When insurance is required, at first glance, most venue contracts look like they have insurance covered.
But over the past few years, requirements have become more nuanced. What used to be as simple as “Venue renter must have liability insurance” has evolved into a mix of specific expectations around renter coverage, liability structure, and endorsements.
In many cases, nothing is obviously missing. But small details in how requirements are written can make a meaningful difference in how well a venue is protected.
Here are the most important requirements that must be included in your rental contract:
Liability Limits
Most venues require $1M in liability coverage from their renters. Coverage levels are generally per occurrence and in the aggregate. These amounts govern what is available in the event the couple or one of their guests causes property damage to your venue or an injury during their event.
Additional Insured
Being named as an Additional Insured is one of the most important components of a renter’s policy. The questions that often come up are - (1) how exactly should your venue be listed as an Additional Insured and (2) how should individual owners or managers be included?
Additional Insured coverage is what allows the venue to make a direct claim under the renter’s insurance if there is an incident involving property damage or injury during the event.
However, this requirement isn’t always written as clearly as it could be, which can impact how it’s applied in practice.
Host Liquor Liability
This is one of the most commonly misunderstood areas. As a venue owner or operator, you need both Host Liquor Liability coverage and Liquor Liability coverage. Two very different types of insurance. Simply said, your venue renters must have Host Liquor Liability coverage and whomever is serving alcohol must have Liquor Liability coverage.
Also, don’t forget beer, wine, and hard seltzer are considered alcohol for insurance purposes, no different than vodka or tequila.
Vendor Liability Insurance
This is equally as important as renter liability insurance. ALL vendors must have liability insurance, naming the venue and the couple as additional insureds on their policy, NO exceptions.
Anyone who comes on your property to do work is considered a vendor, getting paid for their services is irrelevant. A “family friend” working for free to help out the couple is performing the services of a vendor and must have vendor liability insurance.
In addition to this is the added requirement of Liquor Liability Insurance if the person(s) is serving alcohol. The only exception, in some states, can be if there is a self-serve bar where guests are serving themselves and NO ONE is pouring drinks.
Waiver of Subrogation & Primary Non-contributory Endorsements
Some venues are also requiring additional endorsements, including:
Waiver of Subrogation (WOS)
Primary & Non-Contributory (PNC)
Venues that typically have these additional requirements are large hotels / conference centers, historic properties, galleries and public spaces. What these venues have in common is a reduced need to be competitive on pricing in their local markets. Their main priority is protecting their property over providing a competitive market rental price.
Why This Matters
At the end of the day, requiring insurance is not just about having a box checked in your contract, it’s about how well that coverage actually performs when something goes wrong. Clear, well-structured requirements ensure that when an issue arises, your venue is properly protected, claims can be handled efficiently, and difficult situations don’t turn into operational or reputational challenges.
A Quick Note for Venues
Every venue is a little different, and insurance requirements often depend on your operations, event volume, and local market.
If you’re ever unsure how your current contract language is structured, or how it compares to what other venues are requiring, it can be helpful to have an expert set of eyes review it.
We regularly review venue contracts and share sample contract language.
Here is an example our most popular venue contact insurance provision:
https://www.ewedinsurance.com/blog/renters-responsibility-to-secure-insurance/
If you’re unsure how your current language compares, you’re always welcome to send your contract to info@ewedinsurance.com for a quick review.