Insights
Insuring an event can give charities peace of mind should the unexpected happen, such as damage, cancellation, or injury to an attendee or employee
In the aftermath of COVID-19 lockdowns many charities are resuming in-person events. This follows the successful pivoting by charities of conferences, meetings, and fundraising experiences online amid the pandemic, to adhere to social distancing guidelines.
But the end of lockdowns does not mean the end of virtual events. Far from it. They are still regularly taking place, often as part of hybrid event planning that combine online with face-to-face activities.
Already several high-profile fundraising events are adopting the hybrid model. One example is the London Marathon, which in 2021 raised £20m via Virgin Money Giving as a mass participation event in the capital, in combination with a virtual element, to allow fundraisers to take part worldwide in their local area.
As events planning increases into 2022 and beyond, many charities are looking at how they can protect themselves with insurance.
Insurance is vital to the smooth running of an event. It helps to protect charity funds should the unexpected happen. This can also give charities significant piece of mind that their vital fundraising income is being protected from risk.
Below are some of the popular types of insurance:
This is an important part of insurance that protects charities from a claim should someone be injured. This usually involves the event’s organisers submitting a public liability insurance certificate to a venue, which will want to ensure its income is not at risk through any fault of the event organiser.
This form of protection safeguards charities from any claim should a staff member or volunteer be injured. This is a legal requirement to ensure employees are being protected.
Given the cancellation and postponement of events due to COVID-19 in recent months, this is another vital piece of insurance for charities to put in place when organising activities. Sometimes this is referred to as ‘cancellation and abandonment insurance’ or ‘contingency insurance’. This is an important type of insurance for charities who could be financially at risk if the event must be cancelled or postponed.
This covers property the charity may use for the event such as staging, lighting, and digital equipment. Can be particularly important in instances where events require any form of high-tech equipment.
Some insurers can offer specific policies to protect against cyber risks, such as fraud. With cyber-crime escalating in recent years, particularly among charities, there is a clear risk to the voluntary sector in an event being targeted by cyber criminals. According to Action Fraud, fraudsters and cyber criminals stole more than £8.5m from charities between April 2020 and March 2021.
The cost of insuring an event increases depending on its size, how many people are attending and the level of cover required.
According to event insurance intermediary firm Event Insurance Services, typical public liability insurance costs for a small event of up to 100 people for cover up to £1m could be around £60, rising to around £160 for up to £10m cover.
The cost rises significantly for larger events. The cost of public liability insurance for a large event, where more than 5,000 people are attending, could cost between £300 and £600 depending on the premiums involved.
According to insurer Hiscox, the most frequent event management claims are against event organisers accused of negligence when an attendee or staff member has hurt themselves.
Damage to property, either caused by the weather or equipment going missing after events, are among other common situations where events insurance claims are made, adds Hiscox.
Research suggests charities need to be better prepared for scenarios such as extreme weather impacting an event. A survey of more than 140 charity leaders found that they are particularly aware of financial risks to their organisation but are less concerned about extreme events, such as fire and severe weather. This found that 58% view income generation risks as having a high significance, compared to 29% for extreme events, such as flooding.
Commenting on the survey, Caron Bradshaw, Chief Executive of Charity Finance Group said: “True risk management is the responsibility of all; it should be embedded throughout the organisation. Time spent understanding and responding to risk is time well spent.”
Should the worst happen, those with insurance need to familiarise themselves with the process of making a claim.
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