Have your clients got sufficient event coverage?

The festive season in South Africa is a time where the public attends braais, beach parties, live sporting events and concerts. But while the rest of the country is in a festive mood and enjoying these events to the fullest, it can be a major headache for event organisers who have to assess whether their public liability insurance is enough to cover an unfortunate incident.

This is a major concern if one considers that there is always a chance that unfortunate events can occur and that these events can become very complicated when there is panic. Added to this is the challenge that the response of the public may well be severely compromised or influenced by possible intoxication.

Mitigating the risk

While this is a significant risk which can give event organisers sleepless nights, there is a way around this if brokers are dedicated and are focused on making sure that their clients have sufficient coverage. Tiaan Erasmus, Regional Manager Coastal Etana Specialist Risk feels that this should be a priority.

"Business owners, event planners and conference organisers have to adjust to an ever-increasing regulatory environment, greater uncertainty and personal risk in virtually all dimensions or their business. The festive season is no exception,” says Erasmus.

He adds that most businesses and organisations have insurance for regular day-to-day activities, but there are events where specialist insurance, underwriting and knowledgeable risk management are needed.

Risk management

Depending on the size of the event, the organisers can either expect a large crowd or a smaller crowd. Obviously the bigger crowd will pose a greater risk, but that doesn't mean that all events need to be sufficiently insured. Erasmus points out that it is important for a broker and insurer to meet with event organisers and provide a comprehensive risk management and insurance programme.

He adds that the following risk assessment needs to occur in order to plan a successful event:

- The broker and insurer needs to know the event almost as well as the event planner.

- Specialised surveyors need to comprehensively survey the venue.

- Surveyors need to look at the structural integrity of any temporary structures like stages or spectator stands. Any temporary structure has to carry the necessary weight, be fit for purpose and be signed off by an engineer.

- The need for back-up from paramedics and fire stations needs to be evaluated in terms of the size of crowd. Do they have to be on standby, such as is necessary at an event the size of, for example, the Top Gear Festival?

- Brokers and insurers need to examine the presence and capacity of emergency exits. Are there enough? Can the highest potential visitor numbers be evacuated quickly and safely, with trained personnel on hand to enforce efficiency and avoid panic?

- If the event involves fireworks, a racetrack, a boating trip or travel to a special venue, will the guests be safe?

And then finally, the insurer needs to provide sufficient cover for the event. Etana covered the Top Gear Festival and provided a public liability policy, covering the event organiser for up to R100 million.

Not-so-obvious risks

While event organisers like to be prepared and study every aspect of their event and the risks associated to them, there are often risks which are not as obvious. And these risks can cause significant problems. Erasmus appeals to brokers to let their clients know of any hidden risks during the festive season.

"Do your external caterers have liability cover? Is there first-aid back-up, even at a fairly big office party, to manage the health risks of drinking and eating? Is parking safe for guests leaving in a high state of exuberance? Hotels and convention centres present unique risks. If visitors are allowed on balconies and a railing is unstable, one of your guests could fall off the balcony and injure themselves. Alcohol-related injuries often include people falling or jumping from balconies. Should balconies be accessible? Swimming pools and oceans are other risks that need management,” says Erasmus.

Liability insurance

South Africa is a major tourist destination which means that international visitors will most likely attend a public event in addition to the local population. Because of this, the South African Government has been on a drive to ensure that safety at public gatherings measures up to international benchmarks. With the 2010 legislation insisting on public liability, it is a mistake to purchase the lowest limits possible which will result in inadequate cover for a specific event.

Policies differ in scope and cover, so brokers need to search out the option that delivers real value and look out for restrictions. A flexible option which offers certain basics, but takes into account the unique characteristics of an event is the best option for brokers to sell to their clients. Legislation is also constantly evolving; therefore a suitable cover option needs to take account of this as well.

Editor's Thoughts:
While it is true that the need for this type of insurance is necessary over the festive season, South Africa is fast becoming a country which hosts major events as we have seen with the 2009 Indian Premier League cricket tournament, the 2010 FIFA World Cup, the Top Gear Festival, which has become an annual event, and various musical events such as the Joy of Jazz festival and Oppikoppi. Attention needs to be given to the importance of Public Liability insurance outside of the festive season if South Africa is to be seen as a world class event organising destination. Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts jonathan@fanews.co.za.