When it comes to hosting public events, things can go wrong and often do. No matter how well organised and structured the event or how risk averse the organisers might be, the risk of injury, death or damage to property are all factors that have to be taken into account.
South Africa sees thousands of events hosted across the country every year - from corporate conferences and music festivals to sponsored golf days, weddings and exhibitions. These events usually attract large numbers of visitors to a venue, which changes the safety aspects and liability implications of the gathering.
Greg Dillon, Lead – Sports, Events, Entertainment and Drones at iTOO Special Risks explains how event liability cover ensures that all parties involved are protected and taken care of in the instance that a liability should occur, and a claim is made.
“Ultimately, event liability insurance coverage is a safety net – and it is no longer a nice to have, but an absolute must have as it is, in fact, a legal requirement. Previously, organisers either exercised caution or were simply just ignorant about taking out a policy, which was seen as either too expensive or not necessary. But event organisers cannot ignore their responsibility,” says Dillon.
Mandatory coverage
Since August 2010, the Safety at Sports and Recreational Events Act 2 (SASREA) has made it mandatory for all event organisers to make provision for measures that will protect the physical safety of people and property at sports and recreational events held at venues. In some circumstances, SASREA does make public liability insurance cover mandatory.
“Practically, as an organiser, you are obligated to ensure that all parties involved in your event are taken care of in terms of any liability that might be attached - from yourself, employees, people attending and your sub-contractors,” Dillon explains.
“The fact is that without proper event liability cover, your event should not take place. But not all eventing companies and events are the same, meaning that event liability insurance policies can be adapted to the specific needs of the event organisers, whether they are hosting a once-off event or frequent ones.”
He notes that event liability policies can be tailored to accommodate a specific event, taking into account various criteria such as the nature of the venue including whether it is indoors or outdoors and temporary or permanent. Furthermore, the policy will also take into account whether the event is being hosted by experienced organisers or a start-up company, as well as the number and nature of attendees.
“Events come in different guises and come with different permutations. An event liability policy must accommodate the nature of the specific event. Event liability insurance essentially covers the legal and finance aspects of a liability claim, and is also the right thing to do in terms of protecting yourself,” says Dillon.
Events big and small
However, he warns that liability can arise from any type of public event, and not only from big, high-profile ones attended by thousands of people. For example, organisers can face liability risks from small events such as children’s birthday parties that are held in a public park, or another public venue.
“Event liability insurance policies will not cover a fine or penalty that a client incurs due to an incident, but part of the cover that it provides includes legal assistance in respect of cases where there is damage, injury or death. In other words, the policy will cover the legal costs of a client facing an inquiry or even a criminal case if they contravened SASREA or any other statute, but it will not cover the criminal sanctions,” says Dillon.
He explains that a growing number of event organisers are purchasing event liability insurance products. This is because provincial joint operations committees have been established to ensure that all events held in a particular city or province are safe, and that the event organisers comply with all applicable laws and regulations. It is thus a prerequisite for event organisers to have an event liability policy that is up to date and adequate to get sign off from city authorities.
“With any planned event, a number of things could go wrong. iTOO Special Risks offers event organisers and attendees the opportunity to be prepared and covered for any eventuality by providing the correct event liability insurance for the event,” Dillion concludes.