Insurances » Liability insurances » Organizer’s liability insurance

Organizer’s liability insurance

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.

Example:
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.    

Example: 
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.

Tips: 

  • Short-term, event-related insurance policies are recommended if venues and objects are rented only infrequently. Such insurance policies can also be purchased for coverage abroad. 
  • The insurance premiums are usually based on the type of event (number of visitors, number of days, etc.). When recurring events are concerned, it is usually cheaper to sign an annual contract instead of individually insuring each event.   
  • If performances take place abroad, damages abroad must be included in the insurance policy upon application.
  • The coverage amount within Europe should not be less than 3 000 000 euros. However, a coverage amount of at least 5 000 000 euros is recommended, as the difference in premiums for this amount and those for smaller coverage amounts is minimal. In the US and Canada, coverage amounts should be as high as possible, since the courts often approve very high claims for damages. Insurers in these countries offer various maximum coverage amounts of up to 10 000 000 euros. Higher amounts are possible on an individual basis. Due to the practice of approving high claims for damages, premiums are also very high and cover is usually limited to specific circumstances.

What must be done when an organizer abroad has no organizer's liability insurance? 

Example:
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 euros, 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.  

Tip: 

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.

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