How Does Event Insurance Work?
The month of December is the scene of major events. Worldwide!
For this reason, our post talks about a product that guarantees protection, security and peace of mind for these events to take place.
Our #MondayBlog came to clarify how event insurance works, heavily contracted to cover everything from Christmas celebrations at companies and even churches, to the wonderful Christmas exhibitions in malls and city parks. Or even those typical Christmas and New Year parties and festivals.
December is a month of celebration every day, and people often don't understand why event insurance is essential, not only at this time of year, but at any event where people gather, whether to talk, learn, fraternize and even protest.
Do you know anything about event insurance?
Let's start, because this Christmas blog is gonna be enlightening!
What constitutes the organization of an event?
Most people think of an event as something big and extravagant, like Rock In Rio. Which is not wrong, since this festival is a mega event. But a birthday, or even a baby reveal party, is also an event worthy of protection.
And in general, people focus on the superficiality of the event, and do not know the necessary details for an event to be successful.
For a child's birthday party, for example, parents need to sit down and decide what to do, how to do it, where to do it, who to call and how much they can spend.
In mega events, you multiply this conversation with more than fifty teams and outsourced companies, who need to work and coexist for months, even before the event gates open.
We have the organizing company, outsourced workers, security, equipment, licenses and permits, the venue for the event, the artists, the structures to be assembled, and a very well-structured budget.
And the insurance comes in to protect absolutely all these aspects, from the beginning of the pre-production of the event, until the last moment of the disassembly of the event and return of equipment and structures.
The principle of liability
Many brokers sell the event insurance product, taking the "principle of liability" as their flagship. Which makes a lot of sense, however it is not in Civil Liability that the event organizer suffers the greatest financial losses, there are other more costly dangers, which we will talk about later.
But you must be wondering what the “Principle of Liability” is, and in fact it is something very simple and established by law in Brazil.
It works like this: Anything that happens in an event in which you are responsible (producer), the fault for this damage, accident, death, loss is yours.
There's nowhere to hide. You've gathered people and made an event, do everything to ensure safety, because one way or another you will be legally liable if something goes wrong.
And that is the attraction of the Civil Liability coverage combo, which covers the organizer, in the form of reimbursement of any financial loss arising from damages resulting from the fault of its organization, provided that this fault is unintentional.
The budget of the event
This is where the real financial danger for any event organization lies.
When we talk about the event's budget, we are talking both about the costs, or rather, the expenses to hold the event, and the expected profit at the end of the endeavor.
And at that point, the event product is formed by a powerful triad of coverage that will protect your capital from losses, in case your event is canceled unexpectedly by something beyond your control.
For example, the coverage of Weather Conditions, when contracted, guarantees compensation for its cost and, in some cases, the expected profit, in case an absurd storm occurs on the day of your event and it is not possible to carry out what was scheduled.
Or even, if it is a concert by an artist and he or she becomes ill, has an accident and the event has to be canceled and/or postponed due to this unforeseen event.
So, if your event is relatively expensive to hold, it's interesting to talk and understand how these three coverages can help you, namely: Cancellation, Weather Conditions and No Show.
The viewing public
Events' Civil Liability coverage is mandatory in several Brazilian states, by law, as well as Personal Accident coverage.
These two coverages must always be present in your policy, if you are going to hold an event, even if your state does not oblige you to hire them.
This is due to the fact that accidents at events are a fact of life and the best thing is to avoid headaches that involve your audience, both due to financial problems, as well as image and mainly legal ones.
If the worst happens, you can be sure that a judge will certainly be more generous with an organizer who bothered to hire protection for his audience, in the form of PA and CL.
The team
People who work directly for the event producer or outsourced, must also be protected by Employer Liability and Personal Accident coverage.
These people are a thousand times more susceptible to falls, accidents and other problems, during their long working hours, and in many cases, due to the rush.
People who work with companies that care about their well-being tend to work better and dedicate themselves more, because they know they are important to the organization, and in addition, a good event organizer knows how to avoid headaches by ensuring protection and care for everyone involved in your events.
Tons and tons of equipment
Assemble structure, disassemble structure, rent equipment, install, return.
Event insurance is multi-risk and covers all facets of your equipment, whether owned (from the company) or rented, in addition to structures, musical instruments, electronic equipment, costumes, decorative objects and much more.
And coverage is for theft, damage, for the entire duration of the event, from assembly to the last day of disassembly, and may be extended to transport for delivery and return thereof.
Did you already know that Event Insurance was like that, very complete?
We hope you enjoyed our December post and that, the next time you hold an event, remember to take out your insurance with the help of a brokerage firm that knows what is needed to protect you in every aspect.
Prospecto Seguros is exactly this kind of broker.
And we don't say this lightly, we really are one of the few brokers in the market with the experience to help you in the right purchase of your event insurance!
Are you going to celebrate something? Count on Prospecto!
We look forward to seeing you on our next #MondayBlog.
Now only in 2023!! See you next year.
At Prospecto, we wish you a wonderful Christmas and New Year!
Prospecto Seguros
Learn more:
Audiovisual Production
Errors and Omissions
Equipments
Drones
Life and Personal Accidents