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.
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Content provided by the Event Organisers' Guide by Trinity Conferences Ltd
