For Organizers

Liability insurance

It covers damage to life, health, property, and consequential financial loss of third parties. Liability insurance is taken out by entrepreneurs, legal entities (general liability) as well as individuals (private liability), employees (employee liability insurance against damage caused to the employer).

General liability insurance

General liability insurance should be an inherent part of the insurance coverage of every business entity, whether legal or an individual, and as such it ranks among the basic insurance products offered by an overwhelming majority of insurers in our market. Some insurers refer to it as to "business liability insurance" in order to draw a distinction from "citizen liability insurance", i.e. insurance of non-business persons, which is governed by other regulations.

1) Insured persons

The liability insurance usually applies to damage caused by:

  • the insured person (policyholder);

  • then authorised representative of the insured person (policyholder) and persons in charge of managing or supervising the insured business establishment;

  • the employees of the insured person (policyholder) during the performance of their work tasks.

  • It should be stressed at this point that the liability for damage caused by an employee or other person hired by an entrepreneur to fulfil his or her obligations towards a third person is always borne by the employer or entrepreneur, who can subsequently make a recourse claim.

    2) Supplementary insurance

  • of liability for things taken over (another person's things have been taken over to carry out the ordered activity using these things) and liability for things in use (another person's things in use = things that have been leased, borrowed, etc.)

Example

Borrowed lighting and sound technology, stage set, musical instruments, etc.

  • Liability for environmental damage caused by a sudden failure of protective equipment
  • In case there is no damage to life, health or property but a financial loss occurs, there is financial loss liability insurance. Such financial loss means lost profits and fixed expenses.

Example

The organiser of a performance does not secure the premises in time, as a consequence of which the contracted concert does not take place and the performing artists lose their earnings.

  • If multiple parties are involved, mutual liability of these entities for damage they could cause to one another (cross-liability) can be negotiated.

Example

Actors on the stage can hurt one another or damage one another's property.

3) Liability insurance for organisers

Each organiser assumes the risks associated with the particular event. Whether it is liability for the premises he or she has rented, for the performers and the audience or for the borrowed equipment, another person's belongings, etc. When taking out an insurance policy relating to a planned event, attention should be paid to the provisions of the contract with the owner of the premises where the event will take place, both for events held in the Czech Republic and abroad. The liability for damage is usually borne by the event organiser. If the organiser rents premises for the event, the obligation to take out the corresponding insurance is usually up to the organiser as the tenant. Liability for damage resulting from defects at the rented premises (when, for instance, a chandelier falls down and injures somebody) is borne by the landlord.

Example

Damaged cables at rented premises cause fire. Several visitors are injured, and some equipment is damaged.

  • The landlord is liable for the damage incurred, since it was caused by a defect in the rented premises. If, however, the damage was caused by negligent overload of the network of the rented premises, liability for the damage would be borne by the tenant, in which case the tenant's liability insurance policy should be applied.

Example

A circus group of freelance acrobats performs shows in a theatre. The performance starts in the foyer, where one of the acrobats loses grip of the hoop he uses for the performance. The hoop injures one of spectators and he has to be taken to hospital.

  • The liability for this harm is borne solely by the acrobat.
  • If the organiser is covered by liability insurance, the insurance company will cover the damage incurred only if the show was mentioned in the description of the performance in advance. If the damage is not covered by the organiser's insurance, it could be covered by the acrobat's professional insurance, provided the acrobat has such insurance policy.

Useful tips:

  • Before signing a contract, it should be clear who will insure the performance/event, whether it is held in the Czech Republic or abroad.
  • The organiser is also liable for damage that both performers and the audience can cause to the rented premises, e.g. damage to the owner's property, or when a spectator or a performer suffers an injury due to an unmarked step, a loose board or tile, etc.
  • Short-term insurance policies relating to individual events are advised to be negotiated for unique events only.
  • The amount of premiums depends on the type of the event (the number of visitors, duration, etc.). For recurring events, it is always more advantageous to sign an annual insurance policy than to insure each event separately.
  • If a performance takes place abroad, the insurance must also cover damage incurred abroad.
  • In Europe, the sum insured should not be lower than EUR 3,000,000, but an amount of EUR 5,000,000 is more advantageous, as the differences in premiums are not significant. The sum insured for the USA and Canada should be as high as possible, since courts often award very high compensations. Insurers offer coverage of up to EUR 10,000,000 for these countries, but higher amounts can be arranged based on an individual offer. The premiums, too, are very high with regard to high compensations.

Property Insurance

It covers particularly exhibitions, works of art and scenic designs.

Each exhibition carries a danger for the artist or organiser in the form of theft of the exhibited work of art or its damage during installation on the site or during transport. It is very advantageous to take out a "nail to nail" insurance policy, under which the works of art are insured from the moment they are taken from their original place until the moment they return to their place after an exhibition. The insurance covers transport.

Consignment Transport Insurance

This type of insurance is frequently taken out for exhibitions where the items to be exhibited need to be transported to the place of exhibition. The transport insurance covers damage that could occur during loading, transport and unloading.

Event Cancellation Insurance

It can relate to cancellation either due to unfavourable weather (when an outdoor event is taking place) or due to the absence of the performer. The insurance policy must be concluded no later than 14 days before the date of the production.

 

Example

An outdoor performance could not take place owing to the persistent rain. The organiser incurred expenses on ticket refunds and on the rent of the premises, sound systems and lighting equipment.

Ticket cancellation insurance

This type of insurance is usually associated with the event cancellation insurance and it covers the costs linked with the cancellation of an event. The insurance contract has to be concluded long enough in advance.

Insurance of persons (personal insurance)

The organiser can take out personal accident insurance for all performers at the event, including travel insurance if the event takes place abroad.

Vehicle insurance

This includes both insurance of liability for damage caused to third parties by the operation of a vehicle, which is prescribed by law and is therefore compulsory, and accident insurance, which covers damage to the vehicle, including the option of taking out accident insurance for the persons in the vehicle.

Terrorism insurance

Terrorism insurance can be taken out along with other types of insurance, usually event cancellation insurance.

Insured event

If damage arises in connection with driving a vehicle, a Driver Helpline is available in the Czech Republic by dialling 1224. This line can be called in cases of an accident, theft or vandal damage.

Other kinds of damage must be reported to the insurance company from you have taken out the insurance policy, using the contacts of individual insurance companies below. You can report the damage:

  • by phone, calling the client centre of the respective insurance company,
  • online, using online forms of the respective insurance company,
  • in writing, using the form of the respective insurance company (it can be downloaded   from the website of the respective insurance company or collected personally at the insurance company's branches)

The report must be accompanied by required documents (they are specified on the damage reporting form).