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.
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.
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 than that carried by the organiser.
Organisers should ensure that any contractors or suppliers engaged during the course of an event have in place adequate Public Liability insurance. This should form part of the organisers risk management process.
The following covers are provided as standard on most Event Insurance policies.
An event may need to be cancelled, postponed or relocated. If this is due to circumstances beyond the control of the organiser, they may need to make a claim in respect of financial losses, including any anticipated profit. If it is possible for the even 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 that they are unable to vacate the premises due to an unforeseeable event such as inability to access the venue. The delay in leaving a venue can attract a financial penalty, which can also be covered.
This cover provides against the risk of cancellation due to an act of terrorism.
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 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, fittings, plant and machinery at the venue.
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 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 the organiser during the course of a formal or casual employment in connection with the event insured.
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 nonappearance of a key speaker or entertainer.
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.