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Why Your Event Needs Event Management Insurance

Event management insurance, also known as special event insurance or event liability insurance is relatively less known about. Despite the fact that organizing events require a huge amount of capital and spending by event management companies, most companies bank on the chance that their events end without a major glitch.

However, with most events involving third parties and multiple vendors, odds are that a few glitches here and there are inevitable. 

Why do Event Management Companies Need Insurance?

Mishaps are bound to happen during any event, no matter how well-planned. Should a member of the public get hurt in an event organized by you, it is always best that your company be protected from liability, which is why even partial, if not full protection through event management insurance could make all the difference.

Protection against what, you ask? Based on past occurrences, every event — be it large or small — is exposed to third party liability, either in the form of bodily injury or any form of equipment malfunction.

Let’s say a floor was recently mopped and no “wet floor” sign was placed in the area, an attendant slips and injures himself. Your company could be held liable for the mishap. Or if during the event, one of the vendors reports their equipment was damaged by the organising team, again your company would need to pay for the malfunction or damages. 

Types of Event Management Insurance

There are various types of event management insurance which companies can consider. Each offers a different type of protection, but together can form a comprehensive coverage plan. Essentially, there are 3 types of insurance an event organiser should procure prior to each event, which are:

Public Liability Insurance

A majority of event companies take up public liability insurance for their events and insure it on an event by event basis. Public liability can protect the insured from a claim in the event of a third-party injury or damages due to the organizer’s negligence. But wait, what if the venue has its own public liability insurance, would the event management company really need one as well? It depends.

It definitely is important for a venue to possess its own public liability insurance policy, as it will cover the company in the event of any accidental injury caused to any members of the public due to negligence by the organisers. For example, if the carpet furnishing at the venue was incorrectly laid, thus causing a visitor to trip and injure him- or herself, the visitor would then have the right to sue the venue on the basis of negligence.

However, if a spillage occurred on the floor of the event (perhaps by one of the attendants or organizers themselves), and caused a visitor to trip and injure him- or herself, the visitor would then have the right to sue the event organizer instead of the venue, on the basis of negligence. This is because it is within the duty of the event organizer to keep the venue floors clean and safe for visitors.Whilst public liability is considered the first building block of any event insurance portfolio, another type of insurance that many event organizers may wish to take on is all risk insurance, otherwise known as fire insurance.

All Risk/Fire Insurance

All risk/fire insurance covers the company’s equipment such as Audio Visual speakers and lighting systems that are brought in for the purpose of the event. This is to cover the equipment and machinery brought in to facilitate the event. Depending on the size of the event, some equipment and machinery brought in can be both expensive and of high value. Thus, the all risk/fire insurance covers:

  •   Event property that is owned, borrowed or hired for the event
  •   Logistics to, from and during event including loading and unloading
  •   Terrorism cover can be included
  •   Continuing hire charges cover for hired equipment

Contractor All Risk Insurance

Last but not least, this insurance covers the event organizer in the event of venue construction or beautification. In fact, most venue holders (such as shopping malls) require event organisers to hold a contractor all risk insurance cover note before allowing any construction or beautification of their event venue to take place.

Contractor all risk insurance typically states the principal figures, which are the venue holder, main contractor name, name of tenant and all additional sub-contractors. Besides these three, there are also insurance policies designed for a certain type of event, such as wedding insurance and corporate event insurance.

Claiming Event Management Insurance

While event organizers purchase many types of insurance for every event, it is important to note that claims notification should be sent to the insurance company within 24 hours of the plaintiff filing their claim.

If it is determined that the claim falls under public liability, the insurance company should appoint an in-house panel lawyer in order to manage the claim. Any correspondence with the affected parties will then be handed over to the insurance company. In the case of contractor all risk insurance, a client would need to give photos of the damage, a site report as well as a police report to the assigned adjuster appointed by the insurance company. For more information on Contractor All Risk, please click on this link.

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