Events Liability and Events Cancellation Insurance in South Africa

Insurance for Events Liability and Events Cancellation, is crucial. Research is key and a sound Event Liability Insurance policy is essential – many countries will not permit the hosting of an event without it.

Events Liability and Events Cancellation Insurance:
Check extensions/exclusions on: Cancellation, None-Appearance & Weather.

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 Broker Directory News   See News on Events Liability and Cancellation Insurance:
•  Cape Town Cycle Tour – Cancellation and why you need Event Insurance (March 16, 2017)

The cancellation of a big event (such as the 2017 Cape Town Cycle Tour - the world’s largest timed cycle race due to the infamous South-easter wind), serves as an important reminder to all local businesses about the importance of insuring events.

It is the responsibility of each company's Events Coordinator/Planner involved in organising an event, to not ONLY take out Event Liability Insurance, but to also consider Event Cancellation Insurance cover. Event Cancellation Insurance is usually broken down into three categories which are all optional: First: Cancellation. Second: None-appearance and Third: Weather. However, there are strict terms and conditions and one should always consult your broker well ahead of an event to ensure that all factors, for example, wind, are taken into consideration.

Organisers of an event cannot be held liable for loss, damages and injuries resulting from a 'natural cause' such as wind, in most cases. However, organisers of an event have the duty to take reasonable steps to prevent foreseeable damage, loss, or injury to participants.

If you are an Events Planner/Coordinator, you have to acknowledge certain risk scenarios and plan for these potential liabilities.

Certain municipalities in South Africa dictate that if an event is held in the city, the event organiser must provide proof of Event Liability Insurance, which could be around a minimum limit of R5-million.

Being a specialist area of insurance, certain niche underwriting managers and a few insurers specializes in this area of cover. These options may be confusing...

In fact, the smartest thing you can do is -- Get a specialist broker to do it for you!
Also, note the following guidelines and considerations applicable to Events Liability and Events Cancellation Insurance:
  • Event Liability Insurance offers you cover if you are legally liable if a person dies, sustain an injury or illness, loss of property and property damage.
  • There may be agreements required between the Events Planner/Coordinator and the owner of the venue. Check these requirements.
  • If any sub-contractors are used during the event, make sure you have copies of their active insurance policies and cover options. Make sure it is adequate for your needs.
  • It will be expected of any skilled events coordinator to mitigate risks through common risk management. If you are not skilled in certain areas, rather sub-contract to professional contractors to avoid or reduce risks.
  • It will also be required of the insured to adhere and comply with all the warranties of the policy wording.
  • Make sure you understand what is excluded by the Events Liability Insurance policy, as it may differ – pending the event you are organising.
  • Common extensions available for consideration on a Events Liability Insurance policy may include the following: Emergency medical expenses, spread of fire, wrongful arrest, collapse of temporary structures, defamation, to mention a few.
  • There is a legal duty to prevent reasonably foreseeable damage to participants of events that may occur - also for instances such as: Cycle Tours held during heavy winds; Cruise ships at risk of getting caught in a hurricane; Bus tour operators learning about significant damages to the road; 4×4 trip organisers becoming aware of excessive heats and slippery terrains; or any sports events hosted on open fields during a lightning storm, etc. All need to take the same types of precautions as event organisers in order to avoid liability.
    Events Cancellation Insurance:
  • The normal Events Cancellation Insurance policy, would cover natural disasters, fire, explosions, technical issues, or government intervention, but may also offer extensions to include cover for adverse weather conditions, non-appearance of key people, riots and so on. Check your Events Cancellation Insurance policy conditions and/or extensions carefully.
  • As with any insurance policy there are exclusions. Therefore make sure you understand what is covered and what is not on the standard Events Cancellation Insurance policy.
  • With an Events Cancellation Insurance policy, it is very important to have a detailed comprehensive and current budget, as this may be used to prove and process your claim.
 Events Liability: A legal duty to prevent reasonably foreseeable damage to participants
Events Cancellation Insurance: Cover available for natural disasters, none-appearance etc.
 Events Liability: Take reasonable steps to prevent foreseeable injuries to participants
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