When it comes to purchasing insurance coverage for events, particular attention should be paid to who assumes the responsibility according to the contract with the venue. This applies to events both domestically and abroad. Usually, the organizer is liable for damages. If a person rents a venue, the obligation to obtain sufficient coverage for the event is usually transferred to this person. The insurance policies must be listed in the general terms and conditions. Only damages caused by defective furnishings (for example, if a lamp comes loose and causes a personal injury) are subject to the liability of the lessor.
Damaged cables at the venue cause a fire. Several visitors are injured and some of the furnishings are damaged.
The lessor is liable for the damages because they were caused by the location. However, if the damage was caused by negligent overload of the circuits by the lessee, the liability insurance of the lessee will cover the damages.
A circus troupe, whose members are all freelancers, gives a guest performance at a theater. The performance starts in the foyer, where one of the acrobats drops the hoop with which he is performing and injures a member of the audience, who consequently requires hospital treatment. The fault is clearly attributed to the acrobat.
If the troupe has an organizer's liability insurance policy, the insurance company will only cover the damages if possible damages caused by the participating artists have previously been included in the risk description. If such damages are not covered, the professional liability insurance policy of the acrobat would cover the damages – if the artist holds such a policy.
What must be done when an organizer abroad has no organizer's liability insurance?
A dance troupe from Germany is invited to France for guest performances on four evenings. The French organizer requests proof of a particular engineering insurance for these performances, as well as liability insurance with a coverage of €300,000, which the troupe does not have.
The ensemble can purchase the policy itself. There are short-term organizer’s liability insurance policies and annual policies. In this example, coverage on a daily basis would certainly be more sensible.
One should definitely make sure to take into account the required insurance policies before negotiating the remuneration so as to be able to include the insurance premiums.