By Cameron Smith and Mark Smith

Meeting and event planners have reason to be optimistic over what 2025 holds for the business: Attendance numbers overall have reached 90% of pre-pandemic levels, according to one leading index. Even better, 81% will have an in-person component and 63% will be fully in person.

But even so, planners shouldn’t get too comfortable. The business of putting on a meeting or event remains a risky one. It’s not just acts of God — think weather instability and natural disasters — that can wreak havoc with the best-laid plans. Violence — think active shooter incidents — can expose the event’s sponsors and venue owners to costly injury and wrongful death claims.

What should temper the industry’s enthusiasm for the post-pandemic climate is that risks remain, requiring diligence that insurance policies measure up sufficiently. Special event and entertainment venue insurance can be instrumental to have in place. Knowing the ins and outs is essential.

THE EVENT CAN’T GO ON, NOT WITHOUT SPECIAL COVERAGE

Special event policies can be thought of as peace-of-mind policies, protecting the venue and event sponsor from third-party liabilities, such as bodily injury and property damage. Every type of special event should secure this coverage, whether what’s involved is a business conference or a trade show, a political rally or a wedding. The venue will require it.

The venue’s contractual requirements determine premiums. Anything higher than the typical $5 million coverage cap (also contractually set) must be senior underwriter-approved.

Event insurance is both specialized and transactional, and not every broker is familiar with the nuts and bolts of writing it. Three areas requiring special attention include:

  1. Deductibles. It stands to reason that, the higher the deductible, the lower the premium. But what counts is the degree of risk and liability, and that hinges on the nature of the event. While a wedding is low risk, requiring zero deductible, a rally featuring a high-profile or polarizing individual is higher risk, and the deductible might surpass $5,000.
  1. Underwriting requirements. These may be written into the contract to make certain types of risk eligible for coverage. For example, rock concerts usually require one security guard per 100 attendees. Amateur sporting events must have hold-harmless agreements. Such measures must be accompanied by written confirmation.
  2. Exclusions. Activities typically excluded from coverage include dangers not applicable to most special events, like pyrotechnics, firearms, stun guns and knives, aerial maneuvers like bungee jumping and skydiving, and COVID-19 and other communicable diseases.

LIVE EVENTS ARE BACK, BUT ENTERTAINMENT VENUES ARE RISKY

Event sponsors also need to be aware of potential budgetary pressures as event venues scramble to cover costs driven up by higher insurance rates. Especially with the rise in high-value injury claims after violent incidents, insurers aren’t eager to take on entertainment risks, with venues paying more for property, general liability, event cancellation and workers’ compensation.

Venues should be mindful of strategies that will enable them to get adequate coverage affordably. Moreover, meeting planners should be aware of how those strategies might affect their plans.

Understand and evaluate the changing nature of entertainment risk. The frequency and severity of claims from violent incidents could lead venues to rethink what kinds of entertainment they host, and turn down planners with a poor track record.

THE ROLE OF SECURITY

Robust emergency plans and security must be in place, showing insurers their role in reducing risk during events. Insurers won’t consider venues that cut corners.

Further, vendors must have proof of insurance and be added as additional insureds to policies.

Details matter. Underwriters demand to know the specifics of how a venue operates, what kinds of events it hosts and that it follows the best event management practices. Failure to provide details can cause policy cancellations or prohibitively expensive policies, which can be passed on down to you.

Cameron Smith is the senior vice president at global insurance brokerage Hub International. Mark Smith is a marketing executive at the firm.