Organising a large scale event or festival involves a lot of moving parts. The scale of a festival can mean thousands of people gathering in the same place, which can in turn be a recipe for disaster should an accident occur. In order to protect yourself from a lawsuit resulting from an injury or property damage to a third party, it is critical that you purchase public liability insurance for festivals.
What Public Liability Insurance Covers
Public liability insurance will cover the cost of defending a claim, as well as any medical bills and treatment resulting from an injury. Given the litigious nature of society and the high cost of medical bills, this figure can quickly escalate to a point where it will threaten your business and your livelihood. If you have public liability insurance, however, the following aspects are covered:
- All legal expenses and fees
- Hospital treatment, ambulance rides, and claims made by the NHS
- Property damage suffered by a third party
There are, however, some exclusions that public liability will not cover. Any employees that are working the festival, for instance, must be covered by employers’ liability insurance. This can often be bundled together with your public liability policy for more favourable rates. Another common exclusion applies to the use of hazardous materials. Most liability insurance policies will not cover a festival that employs fireworks or other tools that are commonly associated with negligence claims.
Festival and Concert Cover
Often times, festivals are brief enough that long term insurance is not necessary. Most insurers will be flexible enough to provide insurance for events as short as a day, as well as annual rates.
There are a number of ways a person can get injured in any business type, from spills to falls. However, with a festival, the sheer abundance of people can only exacerbate this risk, often times with the organiser being found liable. For example, if adequate space was not provided for people to walk, or escape routes were not provided in the event of a fire, it may prove to be a case of negligence on the festival management. If there was an episode of trampling and the organisers were found to have sold more tickets than was sustainable, it could also result in a lawsuit.
Public Liability Insurance Costs and Limits
Generally, the higher the risk, the higher your premiums. The public liability risk involved in putting on a festival or concert is immense, as it encourages attendance and participation from the general public. This also means, however, that the need for insurance is imperative. Depending on the length of the coverage and your level risk, there are various limits offered, from £1 million to £10 million.
It is a good idea to consult with an ABI licenced broker regarding what options would be best for you. While for the most part rates are similar to that received by other festival organisers, there are plenty of factors that may be unique to your situation that could lead to more extensive discounts. Consulting with a broker will provide you a better idea of what cover you need for your particular situation.