What Businesses Need Events Liability Insurance? 5 Surprising Answers

Events can make or break your business. Pull off one successfully and you could find yourself fielding dozens of enquiries from possible clients. Have something go wrong — even if you weren't to blame — and you could risk having to field complaints and deal with liabilities. The multifaceted nature of events means they face unique challenges, which require specialised protection, in the form of Liability Insurance for events. Before you dismiss Event Liability as unnecessary expenditure, make sure you know the wide-ranging situations it can apply to, so you can understand how Events Liability Insurance from Budget Insurance can come to your business’s rescue.

Thinking  outside the box: why Events Liability Insurance matters

To understand why Events Liability Insurance matters to more types of businesses than you’d think, it helps to get an idea of what Events Liability can look like in different contexts. Here are just a few areas where this form of insurance can protect various role-players in the events industry: 

• It’s the law

South African businesses are governed by the Sports and Recreational Events Act (SASREA), which makes it mandatory to take proper steps to ensure an event is safe and secure. Failure to do this can mean you’re held accountable for medical expenses, legal fees, or financial loss if something goes wrong at an event you’re involved in.

• It can happen to anyone

You can follow the law to a T and still find yourself being held liable for an injury or property damage that took place at your event. Unfortunately, accidents can happen even if you take every precaution.

• Shared spaces, shared risk

 Events usually have many moving parts, with different service providers often working together on shared tasks. If your business contributes to a multi-team project that results in a costly mishap, your business may be liable for damages.

• It makes doing business easier

The events industry is competitive. Any client or fellow supplier you hope to partner with will likely be more eager to work with you if they know you’re taking steps to protect your business — and by extension, theirs — against the unexpected. It creates a sense of trust that can lead to lasting, lucrative business relationships.

Unexpected  types of businesses that should have Event Liability 

A common misconception is that Events Liability Insurance is a product made for businesses that exist to exclusively hold events. Many people think of Event Liability as something for professionals like wedding planners or venue owners, who eat, sleep, and breathe special occasions. 

While this is true, and these types of businesses can benefit from Events Liability Insurance, this protection can also help if you operate in one of the following areas:

1. Sports clubs

Injuries are part and parcel of sports or physical game events, and this could come with liability concerns if you own or manage a sports club. For example, a routinely well-maintained field can become hazardous after unexpected torrential rains. Should a soccer player get hurt while practising for an important qualifying regional match, they might explore whether the club was liable for their injury, to get financial compensation for the period they’re unable to perform.

2. Caterers

As someone who prides themselves on ensuring guests enjoy delicious food and drink during celebrations, you take your catering responsibilities seriously. But what happens when a business orders seafood platters from you for a year-end function and guests get food poisoning and require hospitalisation? Having legal resources at your disposal can help you prove that you acquired the food from a reputable source and that you prepared and stored it correctly. It could lead you to discover that the seafood spoiled because the event venue’s refrigerator wasn’t working (though the management failed to alert you to this).

3. Photographers and videographers

You’re tasked with photographing a wedding held at a Cape Dutch-style guesthouse that is considered a heritage site and has retained furnishings and decor dating back hundreds of years. While edging closer to the happily married couple to capture the moment, you accidentally damage the artwork. Liability Insurance can help you cover the costs of the damage, also preserving your relationship with the couple and their venue for your future benefit.

4. DJs and live performers

You’re hired as a DJ for a highly anticipated restaurant opening. During the event, one of your performer dancers falls and injures themselves and some guests, who take out a third-party claim. Event Liability Insurance helps you hire legal representation to deal with the ensuing legal dispute. 

5. Mobile services

You operate a mobile nail and beauty bar and host a ladies' party at a popular local venue. Unfortunately, a guest accidentally crashes into the property’s gate while they’re leaving, and the venue holds you liable. Fortunately, your insurance covers the cost of the damage. 

Get a Budget Insurance quote

Think beyond event management when deciding whether a business can benefit from Event Insurance. We recommend contacting our team for a Budget Insurance quote today to find out if this form of protection could safeguard your business in the high-risk events environment. You have nothing to lose and invaluable peace of mind to gain.