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You get regular check-ups from your doctor to make sure everything is okay, health-wise. Your car gets a going-over when the oil is changed.
But as an event owner, when was the last time you checked to make sure your event insurance is covering everything it’s supposed to? Events can change and so can the marketplace, as well as the tournament economy.
According to industry resources, event owners should review their policies regularly, as listed below:
- On an annual basis, to make sure your coverage is still appropriate for the type of event you have
- If there are changes to your organization or to your events, such as mergers, new ownership, alterations to any of the events you are offering, etc. (For example, if event owners begin serving alcohol, if a soccer tournament now expects to draw 350 teams instead of 35 or if an obstacle race is added to your stable of road racing events, your insurance provider needs to know in advance so that any necessary changes can be made to the existing policy.)
- Prior to committing to a city, venue or other entity, to make sure you are carrying the appropriate coverage. Remember that a new venue might have different requirements for coverage than the last one you used.
- Prior to bidding on an event, which may require proof of a specific type or amount of insurance.
Here are a few questions you should ask in your meeting with your insurance provider:
- Is my policy still active? Will it provide coverage throughout the entire event? What do I need to do now to keep it up to date or to increase coverage as needed because of any changes?
- What are the liability limits? A great summary of liability coverage can be found at this link. You’ll need to ascertain that your policy meets the requirements of the venue you’ll be using, and that it meets with the recommendations set forth by your insurance provider.
- What is covered and what isn’t? For example, in the case of cancellation insurance, losses or penalties incurred by weather-related cancellations might be covered; however, breaking a contract voluntarily without such a reason might not be.
- Are vendors covered, or do they need to provide proof of their own insurance? (This is something your venue may also have a say in, since some venues have a list of approved vendors already.)
- What are some changes in the insurance marketplace and how might they affect my coverage or my insurance needs?
In areas where the sports season has not started yet, it is tempting for the event owner to procrastinate on reviewing insurance. However, notes Liberty Insurance, that’s not a safe strategy to adopt:
“Timing matters when purchasing your policy. Liability coverage can typically be secured up to one day before your event, but cancellation coverage requires more advance planning—usually 14-15 days before your event date. The earlier you secure coverage, the longer you’re protected against potential cancellation issues.”
And, the article notes, event insurance is always necessary, since “even with perfect planning, accidents and unforeseen circumstances happen, and they rarely give advance notice.”
John Sadler of Sadler Sports & Recreation Insurance has been writing for SDM for years, and understands that the only way event owners can act responsibly is by being proactive, as he notes in this article, an excerpt of which follows:
“Securing insurance for hosting tournaments and other sports events is an essential aspect of the planning process. Unfortunately, because many people do not understand it, they’ll leave the subject of coverage until almost the last minute and then will rush to make decisions. The best decisions when it comes to insurance, however, are made by those who understand their options.”
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