Live event insurance changes call on agents to review coverages
Carriers are introducing new exclusions and restructuring existing policies to reflect updated risk calculations.
Current trends and circumstances have created a live-event environment in which attaining coverage can be even more challenging and complicated than in the past.
Between carriers introducing new targeted exclusions and restructuring existing policies to reflect updated risk calculations, agents who want to grow their business and provide clients with comprehensive coverage must stay up-to-date on carrier coverage updates.
Find out what you don’t know.
As various carriers adjust their offerings, proactive agents can and should speak with carriers to determine if any of their existing clients’ policies are affected and learn about any major changes that will limit their ability to secure coverage for future events.
For instance, clients carrying a general liability policy for daily operations may incorrectly assume they are covered for a special event regardless if on-site or off, creating a situation where a wrong assumption that coverage exists could lead to a calamitous result.
Even a policy that does discuss special events may only provide coverage for events that are individually declared to the policy. Typically, in this scenario, a Declared Events Exclusion may exist on the policy, making it clear that events are not covered unless declared.
Another crucial live event coverage is for spectator liability. Some policies can exclude spectator liability. As the name suggests, it applies only to guests, and not to staff, performers or other paid participants.
It’s also vital to review policies for exclusions, which may list items such as tents, bleachers or thrown objects as non-covered incidents. These could leave clients open to major liability if a guest suffers an injury from a collapsed tent or from a vendor throwing Mardi Gras beads into a crowd, for example. This requires a high level of attention to detail and more lead time before an event.
Get ahead of the game.
Insurance carriers review live event policies with a fine-toothed comb and now expect more detailed information. Providing all the required information often takes more time and preparation than past policies, so agents must schedule their work accordingly and ensure clients have enough time to fully evaluate their needs and exposures in accordance with carrier deadlines.
For existing clients, agents can prove their value by identifying any changes to open policies, then communicating them to the client with suggestions to limit potential exposures and liabilities. Any agent branching into live events for the first time is advised to speak with all their partners to determine which carriers and policies offer the best mix of protection and value, and any policies that are untenable due to exclusions or coverage limits.
Ask about everything.
The threats facing live events today range from violent assailants and crowd stampedes to cancellations due to weather or local health regulations. With more variables than ever before, the market for cancellation coverage has tightened significantly. To ensure proper coverage and help event organizers succeed once they are on site, it’s vital to ask a lot of questions, including some that may not have been as important in the past.
Whether the event is a large concert, a town fair, a 5K walk or a political rally, how many entrances and exits are there? What security is being provided? Is the security company well-insured and is their staff trained for this specific type of event? What are the evacuation plans in the event of a need to cancel the show and how long may it take to actually evacuate the venue? Are all the vendors appropriately covered through their own policies? If a vehicle drives through a parade route, is that covered? What about an active shooter situation?
These questions can help shine a light on missing coverages or lead to more in-depth planning and coordination of on-site activities. Carriers with specialized policies for live events may provide better protection against the unforeseen, which can make a huge difference for clients hosting multiple events.
For on-site events hosted by businesses, was the event declared to their policy? If it’s a monthly event, was each one specifically declared with the date and relevant details? This may necessitate more interaction between the agent and client, and it’s entirely possible carriers will continue to implement changes that affect new and existing policies.
Scott Carroll (scott.carroll@take1insurance.com) is senior vice president of Take1 Entertainment Insurance.
See also: