One of the oddities of working in the insurance industry is the unique perspective that insurance geeks have on seemingly everyday events.

Take the Democratic National Convention being held in Denver, Colorado – How many people would stop to think of the liability risks associated with that event? Just what I thought – nobody.

Street festivals, art fairs, skateboard events, and outdoor concerts are all fun for participants and spectators but can be quite challenging to insurance agents and carriers. Spectator liability is the major concern for event organizers. Outdoor events often provide large numbers of people and accident-producing conditions. Large numbers of people milling around often distract people from watching where they are stepping. Uneven ground, loose cables, discarded food and intoxicated spectators all provide many trip/slip and fall accident-producing conditions.

General liability / spectator coverage for special events outside of the normal business operations will protect the event planner and organizer from claim incidents. Injury to participants or any person in the evetn are – such as motorbike riders, mechanics, guides, clowns, and entertainers-are special risks. The most important questions to be answered when applying for special events coverage are the following:

• What type of event is requiring coverage? – Is it a concert, art fair, skateboard show?
• Are there first-aid facilities?
• What is the age demographic of the expected audience?
• Have liability waivers been signed by participants in racing or sporting events?
• Is seating reserved or general admission?
• Is there bleacher seating, and is it portable or permanent?
• Have certificates of insurance been provided by vendors, exhibitors, and amusement device operators?
• Is there event security/crowd control?
• Do performers interact with audience?
• What’s the total event capacity?

Most events are of a temporary nature lasting from a few hours to a few days. Make sure you are covered if your business decides to organize or sponsor such an event.

This entry was posted on Monday, August 18th, 2008 at 11:37 am and is filed under Risk Management, Venture Capital / Private Equity. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.