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Insurance should be the last level of your risk management strategy. Before purchasing insurance you should meet with your team and imagine all possible perils that can take place in the context of the meeting. Decide which hazards you can avoid, which you can afford to assume the risk of and which you can shift to another party through hold harmless and indemnification clauses. Finally, purchase insurance to cover the risks you are unable to plan for. The place to start is general liability insurance.
Areas to Address:
- What is the term? Policies may be purchased on an annual or an event basis such as one or ten days. Review the requirements of your facility and supplier contracts with your broker before contract signature to ensure that required coverage can be provided.
- What are the exclusions? Exclusions are usually lengthy, such as liability for athletic events, boats, terrorism and war. If you need coverage for any of the exclusions, there is usually a separate policy that can handle them.
- Are meetings outside the premises covered? Ensure that coverage carries over to meetings, conventions and trade shows.
- What does your existing coverage include? Corporations may find that their basic coverage is sufficient.
- What is the 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.
- Who are the insured parties? Are employees and volunteers included? In addition, a facility may request to be added as an additional named insured.
- What is the policy limit? Typically $1-2 million in coverage is purchased. An umbrella policy can offer additional coverage of up to $10 million.
Practical Tips:
- Shop around. Compare the offerings of several different policies along with price quotes and varying deductibles.
- Use specialists. Seek brokers who are experienced in the meetings industry.
- Bring your insurance information to the meeting. Have copies of your policies and contact information with you so if there is a problem you can reach your insurance agent easily. Call your representative as soon as the situation arises.
(Note: This information is not intended to be "legal advice." A qualified attorney should be consulted to review all contract issues.)
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