The importance of event insurance

The need for event insurance has become more apparent with national disasters, strikes, and the threat of terrorism.

It is essential that all event organisers should have a good understanding of what insurance cover is available to meet any legal or contractual requirements as well as to protect a valuable investment should problems arise. If in doubt about the correct course of action, an event insurance specialist should be consulted.

Things to consider

Venue

When contracts are signed it is usual for hirers to be made liable for all damage to the premises and personal injuries during the tenancy period, unless caused by negligence of the venue. Some venue contracts are more onerous than others and impose an additional penalty should an organiser decide not to proceed with the event. This is normally referred to as Liquidated Damages. Also, the majority of venues will insist that hirers have Public Liability insurance to a minimum level of indemnity.

Exhibitors/Traders

An organiser should provide an approved set of rules and regulations which require all exhibitors or traders to keep indemnified and save harmless the organiser from all costs, damages, demands and actions caused by a negligent act or omission on the part of the exhibitor.

The indemnity or insurance clause should also include a condition that requires the exhibitor/trader to effect Public and Products Liability insurance with an indemnity limit of no less that that carried by the organiser.

Contractors/Suppliers

Organisers should ensure that any contractors or suppliers engaged during the course of an event have in place adequate Public Liability insurance. This should for part of the organisers risk management process.

What cover is available?

The following covers are provided as standard on most Event Insurance policies.

Cancellation and abandonment

Your event may need to be cancelled, abandoned, postponed or relocated. If this is due to circumstances beyond the control or the organiser, they may need to make a claim in respect of financial losses, including anticipated profit.

If it is possible for the event to proceed, perhaps at an alternative location or at a later date, this insurance will meet the reasonable additional expenses incurred in pursuit of this being achieved.

An organiser may also find you are unable to vacate the premises due to an unforeseeable event such as inability to access the venue. The delay in leaving a venue often attracts a financial penalty, which can be covered.

Terrorism

This cover provides against the risk of cancellation due to terrorism.

Protective Action Costs

This cover provides for the additional costs incurred in an attempt to maintain the standard of the next event after a loss, which would adversely affect the subsequent event.

Property

This cover indemnifies the organiser should any property, for which cover has been purchased, be stolen or damaged. Also, there is usually an extension providing damage to immoveable fixtures, plant and machinery at the venue.

Public Liability

This cover provides indemnity for the organiser due to their negligence in respect of claims arising from death or bodily injury and/or property damage up to a specified limit of indemnity; provided that such liability arises out of or in the course of the insured event.

Employers' Liability

Employers' Liability indemnifies the organiser for their negligence in respect of claims arising from death or bodily injury to any person who is under a contract of service or apprenticeship with you during the course of a formal or casual employment with the organiser in connection with the insured event.

Additional covers available:

Non-Appearance

The success of an event may very much depend on the presence of a specific individual. Cover can be purchased to reimburse an organiser for financial loss due to the non-appearance of a key speaker or individual.

Enforced Reduced Attendance (Indoor Events)

It may be possible to open the doors on time for an event, but due to a particular incident or circumstance, a significant number of delegates or visitors may be prevented from arriving as scheduled. This could be due to a major problem on the roads or railways, strikes by air traffic controllers etc. This may result in the organiser having to compensate delegates who apply for a refund of their fees, or reduced revenue from the sale of tickets. This product is designed to reimburse the organiser in respect of these losses.

Cover is available for all kinds of events from exhibitions and conferences to fetes, concerts and firework displays. Event insurance can be inexpensive, however, the decision not to purchase can prove to be a costly one.

Thanks to Terry Waller CERT CII, Managing Director, Arc International web: Apex Insurance Services Ltd, email: twaller@arc-int.co.uk