Insurance

No, it is not compulsory to insure an event. However, event organisers are highly recommended to subscribe to one-off insurances, such as event cancellation insurance and event liability insurance.

Event organisers are highly recommended to subscribe to one-off insurances, such as event cancellation insurance and event liability insurance.

The insurance company shall indemnify event organisers for their net loss (up to the limit of indemnity agreed in the contract, based on the event revenues or costs) arising from the necessary cancellation, abandonment, postponement, interruption, curtailment or relocation of the event resulting solely and directly from any cause not otherwise excluded which occurs during the policy period and which is beyond the control of both the organisers and any participant (e.g. a fire or a power outage at the venue).

Excluded causes are typically the following: communicable disease (including COVID-19), chemical or biological attack, contractual breach, criminal acts, financial causes, fraud, negligent conduct, etc.

However, bespoke insurance extensions for some excluded causes such as non-appearance, terrorism (act or threat), adverse weather (for outdoor events), civil unrest, cyber incidents or acts, etc., can be obtained against additional premiums. Seeing that more and more events are now ‘virtual’, specific stream or transmission covers for technical issues can be added as well.

Prior to the event, organisers can seek to contact a specialised insurance broker in order to make a full risk assessment based on the type of event, the location, the type of venue, etc.

Event liability insurance should be taken out to cover third party liability against bodily injury or property damage.

Other one-off insurances that event organisers can subscribe to in order to cover their event are the following:

Personal accident insurance is a collective insurance taken out by the event organiser to cover participants’ bodily injuries.

Specific equipment insurance should be taken out to cover material damages.

Weather insurance will offer bespoke insurance solutions, protecting against the occurrence of defined weather perils for a predetermined period and location (ex: loss of audience/ticket sales due to the rain for an outdoor event/concert).

Event cancellation insurance would cost between 1 and 3% of the insured amount (event budget/revenues or costs only).

Event liability insurance would cost between EUR 500 and 2.500, depending on the limits needed.

Normally the participants, sponsors, exhibitors and suppliers of an event are not covered through an event insurance. However, this would have to be investigated case-by-case, as it will depend on the terms and conditions of the event.

Event organisers should inform participants (delegates, sponsors, exhibitors) and service providers (venue, hotels and suppliers) via the contracts (via a waiver of subrogation) or via the terms and conditions (ticketing).

In Belgium, places/venues that are open to the public need an ‘objective liability insurance for fire and explosion’. Hotels/venues must have this on a yearly basis. They also require a general liability insurance.

It is not compulsory to take legal protection, but it can be useful. Part of legal protection can also be covered by the one-off event liability insurance.

Professional event organisers are highly recommended to subscribe to the following annual insurances:

• General public liability insurance, to cover for bodily injury or property damage
• Legal protection insurance, to cover for extra legal expenses
• Professional liability insurance, to cover for errors and omissions
• Employers liability insurance
• Cyber & data risks insurance (GDPR liability, ransomware, assistance)

While location is not relevant, it is recommended to seek coverage via a specialised insurance company, since they typically offer the best coverage conditions.