Why do Event Management Companies Need Insurance?
Mishaps can happen at any time. Should a member of the public get hurt in an event organized by you, it is best for your company to have the Event Management Insurance for partial, if not full protection.
Protection against what, you ask? Based on past occurrences, every event — be it large or small — is exposed to third party liability, either in bodily injury or any form of equipment malfunction.
Majority of event companies take up a Public Liability Insurance for their events and insure it on a single basis. This is because a Public Liability can protect the insured from a claim, in the event of a third-party injury due to organizer’s negligence.
Whilst Public Liability is considered the first building block of any event insurance portfolio, another type of insurance that many event organisers take on is the All Risk, otherwise known as Fire Insurance.
The All Risk/Fire Insurance covers the company’s equipment such as AV speakers, lighting system, and etc. that are brought in for the purpose of said event.
Scenario example: If the shopping mall venue has their own Public Liability Insurance, why would I need a Public Liability Insurance?
It is important for the venue to possess their 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 has been incorrectly laid, thus causing a visitor to trip and injure him- or herself, the visitor would then have the right to sue the venue holder (in this case, the shopping mall) on the basis of negligence.
However, if a spillage occurred on the floor of the event, and causes a visitor to trip and injure him- or herself, the visitor would then have the right to sue the event organiser (you) rather than the event holder (the shopping mall), 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.
Types Of Insurance Needed
Essentially, there are 3 types of insurance an event organiser should procure prior to each event, which are:
Public Liability Insurance
This is to cover for third-party bodily injuries and damages caused due to event organiser’s negligence.
All Risk/Fire Insurance
This is to cover the equipment and machineries that are brought in to facilitate the event. Depending on the size of the event, some equipment and machineries brought in can be both expensive and is 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
Last but not least, this insurance covers the event organiser in the event of venue construction and/or beautification.
Most venue holders (such as shopping malls) require for event organisers to present the presence of the Contractor All Risk Insurance cover note before allowing the construction and/or beautification of event venue to take place.
The 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.
Insurance Claim Process
While event organisers purchase many types of insurance for every event, it is important to note that the claim notification should be sent within 24 hours of the claim filed.
Public Liability Claim Process
- If it is determined that the claim falls under Public Liability, the insurance company will appoint an in-house panel lawyer in order to manage the claim.
- Any correspondence with the affected Parties should be handed over to the insurance companies.
Contractor All Risk Claim Process
- The 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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