Certified Meeting Professional (CMP) Practice Exam

What does property damage insurance cover?

1. Liability for damages caused by attendees

2. Loss of rental fees from the venue

3. Insured property brought to an event

4. Insurance for vendors at the event

The correct answer is: Insured property brought to an event

Property damage insurance primarily covers the direct damages to insured property that the policyholder owns or has in their care during an event. This can include anything from furniture and equipment to other physical assets that are utilized or present at the venue. When applying this to event management, property damage insurance assists in protecting against the costs of repairs or replacement of these items if they are damaged due to unforeseen circumstances, like accidents or natural disasters. While liability for damages caused by attendees, loss of rental fees from the venue, and insurance for vendors at the event are all essential considerations in event planning, they fall under different types of coverage. Liability insurance addresses potential legal responsibilities to third parties, loss of rental fees involves business interruption insurance, and vendor insurance pertains to the coverage vendors must carry for their own equipment and operations. Hence, the focus of property damage insurance is specifically on the protection of the insured property itself.