Cover overview: Special event insurance
November 13, 2014
Hosting events such as concerts, festivals, conferences, trade shows, sporting events and celebrations subjects a business to a variety of liabilities and risks that must be considered to avoid costly litigation or other losses when something goes amiss. Appropriate covers for events include Property Damage Insurance, Public Liability Insurance, Employer’s Liability Insurance and Cancellation Insurance.
Property Damage Insurance
A Property Insurance policy protects event equipment ranging from sophisticated audio-visual systems to folding chairs – whether it is owned, borrowed or hired for the event. The policy generally covers property while in transit to and from the event as well as during the event. Damaged, destroyed or lost property is reinstated on a “new-for-old” basis, meaning that it is generally not appropriate for things like antiques, collectibles or other irreplaceable property.
Special Event Public Liability Insurance
A Special Event Public Liability Insurance policy provides broad protection for situations in which an event holder or concessionaire must defend itself against legal actions or pay damages for bodily injury or property damage to third parties. Limits and premiums vary greatly depending on the type of event and location.
Employers’ Liability Insurance
Employer’s Liability Insurance protects your business against claims due to employment-related injuries or illnesses attributed to alleged employer negligence. This typically includes compensation and costs for accidental bodily injury to anyone you employ, including temporary staff and volunteers.
Similar to Business Interruption Insurance in other industries, cancellation policies are essential to preventing serious financial consequences in case of the event’s cancellation. These policies can be useful even when the event is not entirely cancelled – expenditures due to unforeseen circumstances (such as alternate forms of transport to the event during inclement weather) are generally covered as well. The policy generally covers all perils that are beyond the control of the event’s host, including inclement weather, a speaker dropping out, strikes or disease outbreak. In some cases, the same policy can cover multiple events. Many policies also include cover for re-location or re-arrangement of the cancelled event. Typical non-standard exclusions include breach of contract, lack of attendance and failure to make all the necessary arrangements for a successful event.
Policies are less expensive if they are purchased far in advance, and premiums range depending on the time of year, the type of event and the level of environmental risk in the surrounding geographic area.
Everyone’s circumstances are different, contact CLA insurance on 01234 311 211 to learn more about special event insurance.