Source: Robin Roth, Senior Contracts Editor
E-Specs: April 4, 2006

Holding meetings appears to be a benign enough activity but in today's litigious world meeting planners are faced with ever more complex issues of risk management. Hazards lurk everywhere: on the floor where an attendee can trip over a cord, in the air where a contagious disease can float, or on a desk where a computer can be damaged. Accidents and acts of God happen, yet paying for insurance is costly. Of course, it costs more to pay expenses after the fact but how do you know what kind of insurance you need? The one kind of insurance that will cover many risks is general liability insurance. Meeting sponsors must carry at least this form of insurance.

Think of "comprehensive" or "commercial" general liability insurance as the business version of homeowner's insurance - you wouldn't own your home without it. It can protect the organization against third party claims of liability for:

• Actions of independent contractors
• Damage to leased or rented premises
• Temporary staff
• Nonappearance of keynote speaker
• Libel, slander and false arrest
• Advertising
• Fire damage in certain situations
• Medical payment for injury to third parties
• Host liquor liability
• Exhibitor's liability
• Contractual liability for indemnification

Points to Consider:

• Exclusions: Every policy has lengthy exclusions, such as liability for athletic events, autos and boats, terrorism and war. If you need coverage for any of the exclusions, there is usually a separate policy that can handle that.
• Corporate policies: For corporations, first check out existing policies before seeking outside coverage - in most cases there is sufficient basic coverage in place.
• Certificates of insurance: It is important to obtain these from third party vendors well in advance of an event.
• Rating of the carrier: Make sure it is on the certificate and that the carrier is licensed in the state where the event is taking place.
• Insured parties: Are employees and volunteers included? Also, a facility may request to be added as an additional named insured.
• Amount: Typically $1-2 million in coverage is purchased. An umbrella policy can offer additional coverage up to $10 million.

Your insurance agent is best qualified to advise you as to your insurance needs. Additional sources of information and contacts are:

• http://www.ambest.com/ is a good source of information for ratings of carriers.
• Standard & Poor's rating is also highly regarded - http://www.standardandpoors.com/

(Note: This information is not intended to be "legal advice." A qualified attorney should be consulted to review all contract issues.)