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.
Organising an Event in Brussels
- 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)
1. Is it compulsory to insure an event?
2. What kind of one-off insurances should event organisers subscribe to in order to cover their event, and what do they (not) cover?
Event organisers are highly recommended to subscribe to one-off insurances, such as event cancellation insurance and event liability insurance.
2.1. Event Cancellation 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.
2.2. Event Liability Insurance
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:
2.3. Personal Accident Insurance
Personal accident insurance is a collective insurance taken out by the event organiser to cover participants’ bodily injuries.
2.4. Specific Equipment Insurance
Specific equipment insurance should be taken out to cover material damages.
2.5. Weather Insurance
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).
3. What is the approximate cost of one-off event insurances?
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.
4. Are the participants, sponsors, exhibitors and suppliers of an event covered through an event insurance?
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.
5. How can an event organiser best advise event participants and service providers to take out their own insurance and protection?
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).
6. Which insurance coverage is mandatory for the venue, hotels and suppliers of an event in Brussels?
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.
7. Is it compulsory to take legal protection for the organisation of an event in Brussels?
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.
8. What kind of annual insurances are professional event organisers recommended to subscribe to?
Professional event organisers are highly recommended to subscribe to the following annual insurances:
9. Is it better to be covered through an insurance company in the event organiser’s home country or in Belgium?
While location is not relevant, it is recommended to seek coverage via a specialised insurance company, since they typically offer the best coverage conditions.
1. Are transfers of the accounts taxable?
Transfers of the accounts are not taxable when they occur within the same legal entity. If transfers are made from one Belgian entity to another legal entity or physical person (e.g. a shareholder or a group company), the transfers may be subject to withholding tax in Belgium (e.g. on dividend or interest or royalty payments).
2. Are the benefits made through an event taxable in Belgium and in what context?
The benefits made through an event are taxable in Belgium to the extent that a permanent establishment is deemed to exist in Belgium.
A permanent establishment will in any case be deemed to exist where the organiser of an event is structured by ways of a Belgian legal entity.
In case a Belgian legal entity that is subject to corporate income tax is organising an event in Belgium, the profits generated through the event will be taxable in Belgium and in principle be subject to tax at the statutory corporate income tax rate of 25%.
In case a Belgian non-profit organisation that is subject to legal entity tax in Belgium is organising an event in Belgium, any profits generated through the event should not be taxable under the legal entity tax, unless the legal entity receives income from real estate (e.g. rental income) or movable income, such as interest or dividend income, on which 30% withholding tax is due.
In general, Belgian entities in the event sector (e.g. organisers of music festivals, catering companies, stage builders, etc.) are subject to corporate income tax rather than legal entity tax, even if they operate under the legal form of a non-profit-organisation (vzw/asbl).
Furthermore, when a foreign entity or physical person organises an event in Belgium, a taxable permanent establishment may exist in Belgium under certain circumstances. This will depend amongst others on the type of activities carried out in Belgium, the duration, and the double tax treaty concluded between the resident country and Belgium. To the extent a taxable permanent establishment exists in Belgium, the net profits generated through the permanent establishment will be taxable at the statutory corporate income tax rate of 25%. A tax credit will, in principle, be granted in the resident state.
3. Should a tax expert be hired in Belgium or abroad?
When organising a paying or sponsored event in Belgium, it is recommended to seek advice from a Belgian tax expert. If the event does not generate revenue, it is usually not necessary.
4. Where and how should the financial statement/tax declaration and the closing of the accounts of an event be made and what are the different cases?
In case a Belgian legal entity is used, the financial statements should be filed according to Belgian legislation, based on amongst others the size of the entity and the closing of the financial year.
A corporate income tax return or legal entities tax return will be due, in principle, within 6 months after closing of the financial year. The exact dates are communicated each year by the Belgian tax authorities.
5. How can the account balance (i.e. the profits) be recovered?
In case a company is used, profits can be recovered through dividend distributions towards the shareholder.
In case a non-profit-organisation or a company with social purpose is organising an event, the profits realised should not be recovered, but should be used to realise the social purpose of the entity and to organise future events in the framework of the social purpose.
6. How and where should the transfer be reported?
In case of a Belgian company, the transfer of funds (dividend distribution) should be decided by the board of directors of the company, considering the regulations of Belgian company law. The transfer should be reported in the annual accounts.
In certain cases, withholding tax forms and exemption forms need to be filed.
Dividend distributions should be reported in the corporate income tax return.
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