This week’s Dubai Duty Free Irish Open at Royal County Down will be one of the biggest events staged in Northern Ireland in recent times, as tens of thousands of golf enthusiasts converge on the seaside town to catch a glimpse of world number one Rory McIlroy and the superb line-up of other top class golfers who've been added to the field in recent weeks.
It promises to be a fantastic event, putting Northern Ireland on the global stage. But organising an event of this scale brings with it a considerable amount of risks, which would also be the same for a conference, a consumer show, corporate party or otherwise, and it is important to review and understand the limits of your insurance cover before planning your event.
Keeping to tight budgets can often be a constraint, but the importance of ensuring that the right combination of covers are in place for your event should not be compromised, as an unfortunate incident could result in a very costly pay-out.
The following list provides an overview of the various covers which should be considered for event organisers:
:: Event Liability Insurance - An event liability policy provides broad protection for situations in which an event holder must defend itself against legal actions or pay damages for bodily injury or property damage to third parties. This includes public liability, employers’ liability, equipment cover, cancellation insurance and more. Limits and premiums vary greatly depending on the type of event and location.
:: Public Liability Insurance: A third-party property damage liability pays for damage, destruction or loss of property belonging to others while it is in the care, custody or control of the policyholder. Contractual liability is a legal obligation voluntarily assumed under the terms of a contract, as distinguished from liability imposed by the law (legal liability). Many venues such as conference and exhibition facilities, private hotels and town halls may require a minimum indemnity limit. Make sure to check with your venue for any such requirements.
:: Employers’ Liability Insurance: This is required by law for most businesses, protects your business against legal actions due to employment-related injuries or illnesses attributed to alleged employer negligence.
:: Event Equipment Cover: An event equipment cover protects equipment at events, 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.
:: Cancellation Insurance: Similar to business interruption insurance, 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.
If you’re in the process of planning an event, or have an event coming up in the future, it’s worth bearing in mind that policies are generally less expensive if they are purchased far in advance, but premiums will range depending on the time of year, the type of event and the level of environmental risk in the surrounding geographical area.
A lot of work goes in to the planning and running of a successful event, and with the adequate insurance policy in place, you can rest assured that you will be covered for all eventualities.
:: John Kielty is commercial insurance director at Autoline Insurance Group (www.autoline.co.uk)
