This is more of a question for Luke, the West Insurance agent.
The facts as I understand them.
The cost is $3.50 per person (NOT member) per year. This mean if a membership is a husband/wife, that counts as 2.
from West's FAQ
Is there a hosted event attendance limit?
-Club hosted events up to 1,000 attendees are automatically included in the policy. Coverage can be provided for hosted events over 1,000 attendees for an additional premium. The insurance carrier would require a special event application to be completed that will provide information on the larger event. This application can be found on www.westinsurance.com/aha
How does this apply to your events?
This Insurance IS a VERY SIGNIFICANT benefit for all clubs. The cost is EXTREMELY good.
I don't know the nature of the events these 'freeloaders' are going to, and I don't think I could give an opinion om anything considered a grey area, and I certainly don't want to mislead here.
I would point out that because they attend these events they could be held liable for anything that happened at the event and use that as a enticement to join your club.