Insurance is about transferring risk. As an event manager you might not see a point in holding a reserve of $10 million or $20 million just in case someone decides to sue you because they suffered an injury or loss during your event or because you damaged their property. Rather than holding onto this money, you might like to pay a tiny fraction of it – typically between $600 and $1,000 for someone else to hold onto this risk. But where does one start and what do you look for?
In Australia there are two options: you either speak to a broker or you call the insurance company direct. Calling direct however may mean that you won’t get advice that reflects your business needs and conditions that you may get by talking to an insurance broker. In addition, an insurance broker can access a wider range of pricing options from insurance companies that do not deal directly with the public. Either way, you should ask for a comparison of terms and conditions, including policy wordings and applicable excesses.
Generally, most public liability policy wordings cover the same things and many brands tend to share the same wording and pricing. Suncorp for example, owns AAMI, GIO and Vero – all big commercial insurance brands whereas IAG owns NRMA Insurance, CGU, The Buzz and Swann Insurance amongst others. Ultimately you will need to decide for yourself which brand works best for you.
In relative terms it will generally work out to be more cost effective to obtain $20 million worth of cover rather than say $5 million or $10 million but be sure to check what level of excess you are being charged. In some instances the level that you buy may be dependent upon the requirements of your clients – particularly the higher-paying ones that will take your risk management credentials into consideration when assessing event managers.
It is also worthwhile ensuring that you policy covers liability for physical/bodily injury to attendees, liability for property damage that you may be responsible for as well as liability for any products which you may be providing during the event – irrespective of whether you manufacture these or not. It is important to remember that even if you don’t cause an event such as bodily injury to happen, you may get caught up in lengthy and expensive legal proceedings – costs which might also be covered under you public liability policy.
