April 2007
Cheat Sheet: Liability insurance
Tips on how to determine adequate coverage, find a broker and learn what claims are most common
By Linda C. Chandler
How to determine coverage
• The minimum amount of coverage is the dollar amount that the convention center/exhibition center requires in order to use the venue. The maximum amount is how much you can afford to buy.
• Your organization’s general liability policies may or may not address the special requirements of a trade show, such as liquor liability. Examine such policies to be sure your coverage is specific and sufficient. Purchase endorsements if necessary.
• One risk management rule of thumb is that “going concerns” have umbrella policies of at least $5 million.
• Consider hiring a broker who can analyze your needs and provide guidelines to determine adequate coverage.
Finding an insurance broker
• Consult industry organizations, such as the International Association of Exhibitions and Events or the American Society of Association Executives, which may offer special insurance programs for their members.
• Check references given by other show organizers, your attorney or convention center contacts.
• Look for insurance brokers who have experience in the trade show/convention industry.
Common liability insurance claims
• Trips and falls that may be caused by carpeting, spills, cords, etc.
• Other bodily injury accidents during installation and tear-down.
• Allegations of defamation in trade show floor publications and copyright or trademark infringement by speakers or exhibitors.
• Security or exhibitor-related problems and failure to do due diligence in hiring suppliers.
Other considerations
• Liability policies are generally worldwide as long as the suit is brought in one’s home territory. For example, a British policy may cover claims caused anywhere in the world, but the suit must be brought in the UK. If you have international exhibitors and suppliers, you may want to require them to get U.S. liability insurance.
• Have your attorney examine any indemnity or subrogation clauses in contracts with convention centers, hotels or suppliers.
• When lawsuits occur, there’s usually haggling about who’s at fault and, hence, whose insurance will be “primary.”
• It’s important to promptly notify your carrier in writing of any incident that will cause a claim. In the event of a big incident, demand your insurer or broker send claims investigators to interview concerned parties while your event is still open. It’ll save many hours later.
• Analyze your risk management policies and procedures and take precautions to avoid accidents or injuries.
Terms to know
• Per occurrence — the maximum amount that’s covered for a single incident
• Aggregate coverage — the total amount of insurance available for covering multiple claims
• Umbrella policy — supplements limits of liability available from other policies
Rates
General liability rates are based on:
• Industry statistics
• Your business experience and history
• Previous insurance claims
• Attendance
• The nature of the event, including venues and potential risks
Linda C. Chandler is a freelance writer and editor based in Tyler, TX. She has written for association and convention publications for 18 years and is an active member of Tyler CVB’s tourism committee. Contact her at linda.chandler@earthlink.net.
Meet the experts
• Jack M. Buttine, John Buttine Inc., (800) 964-4454, www.buttine.com
• Tom McDonough, Marsh Affinity Group, (847) 493-4320, www.marshpm.com
• Henry M. Schaffer, Jenner & Block LLP, (312) 840-7673, www.jenner.com
Find additional Web-only content, including:
Tips on what an insurer needs to know about your show
• The location, lease dates and times of the event(s)
• Number of attendees. Generally, rates aren’t based exhibitors and suppliers.
• Admission charges if it’s open to the public
• Activities planned on premises and off site
• Number of years in business
• Liability claims in the last year, last five years. How much was paid or is expected to be paid?
• Any insurance cancellation
• Your risk-management policies and procedures and planned security measures
• Proof of insurance requirements for exhibitors, vendors and subcontractors
• Are you listed as an “additional insured” on others’ policies? Do you need to name other parties, such as venue owners or event sponsors, as additional insureds on your policy?
Plus, find these related archived EXPO articles:
Cheat Sheet: Cancellation insurance, January 2006
Reducing International Risks, April 1996
Limiting Show Liability, July/August 1995
Contingency Insurance, July/August 1994
How Liable Are You?, March/April 1990
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