Certified Meeting Professional (CMP) Practice Exam

Insurance costs are frequently overlooked in event budgeting, even though they play a critical role in protecting the event organizer and stakeholders. Having appropriate insurance coverage can mitigate risks associated with various unforeseen incidents such as accidents, cancellations, or liability claims. Since events involve many variables and potential risks, ensuring that adequate insurance is in place is crucial for the smooth execution and financial security of the event.

While the other items listed are significant aspects of budgeting, they are more commonly considered because they directly relate to the immediate logistical and operational elements of the event. Event planners often focus on venue setup fees, audio-visual equipment rentals, and registration fees, as those expenses are essential to the event's functionality and success. However, neglecting to budget for insurance can ultimately lead to larger unforeseen financial burdens if something goes wrong during the event.