Event Insurance

Events require a property that has to be safeguarded against perils. Damage to these could lead to the cancellation of events as well. In any case, the insurer's maximum liability would not exceed the sum insured as the claims would be payable based on actual costs incurred to repair or replace the property or the maximum sum insured, whichever is lower. If the cost of repair or replacement of the insured property is higher than the sum insured, then the insured would be responsible for the extra amount above the sum insured limit.

This section covers the direct physical loss or damage to the insured property due to:

• Fire and allied perils occurring at the venue of the event
• Earthquake resulting in equipment damage
• Lightening
• Explosion/ implosion at the event
• Aircraft damage to the property leading to equipment damage
• Impact damage to the insured property resulting in equipment damage
• Subsidence, Landslide and Rockslide
• Bursting and overflow of overhead apparatus, water tanks and pipes
• Missile testing operations
• Leakage from sprinkler installations resulting in equipment damage
• Bushfire excluding forest fire
• Burglary and/or theft at the event resulting in equipment damage

The personal accident insurance policy offers financial assistance to the insured and relatives in the event of death or disability of the person insured. Personal accident policy is given on a named basis in which the named insured would be covered for death, permanent partial disability, and permanent total disability. The personal accident section covers the death or disability arising out of accidental events, and an accident for the purpose is defined as an unfortunate, unexpected and unintended event resulting in bodily injury. Personal accident policy provides compensation in case of bodily injury resulting in death or disability caused solely by violent, visible, external, and accidental means. The personal accident policy is offered on a named basis in which the name and designation of the insured should be mentioned clearly for the coverage to be applicable. According to this clause, loss of life or disability for the insured as a result of intentional self-injury or suicide or attempted suicide, as well as accidents that occur while intoxicated by alcohol or other drugs, are not protected.

Events attract a crowd, and there can be accidents resulting in third-party injury or property damage during the event or in connection with the event. These claims are also insured under the event-insurance policy in the section on public liability. The limit of indemnity for this section has to be declared by the insured before the commencement of the policy. Any liability the insurance company took through an agreement, which would have been incurred without such agreement, must be stated as a proposal. Some insurers would also require details of pyrotechnics or fireworks, lasers, and other explosives to be used during the event. The chance of occurrence of accidents could increase dramatically with the usage of these, and insurers would be wary of such things while underwriting the proposals. It is crucial to remember that any accidents must be reported to the insurance company within the policy's duration under the policy's conditions and terms. The claim would be paid according to the indemnity limit.

Events include money, and theft or robbery could occur. To cover such uncertain events, the money insurance section in the event insurance helps the insured customers recover their losses. The money insurance cover would be provided only on display of adequate security on the premises.

The coverage under money insurance includes:

• An actual or attempted burglary occurs in the coverage period, and the money is protected only if the insured property is within the Safe or Strong room.
• During the policy, robbery can be accessed at the cashier's till or counter at the premises insured during working times.

Add-ons provide additional coverage in the event of an accident that is available with the payment of costs. These add-ons would alter the terms and conditions of the event insurance policy and would override the existing conditions of the policy.

Named Artist Cover

The cover intends to provide coverage to the artists performing in the event on a named basis. For this, the details of the artist, such as name, age, occupation, and travel arrangements, should be mentioned in the proposal form. This is generally used to honor guests of the dignitary or taking part in the event.

RSMD Cover

Riot, Strike, and Malicious damage cover can be covered as an add-on after payment of an additional premium. Events could also get canceled due to riots, strikes, and malicious damage, which could cause considerable losses to the event organizers. RSMD cover can be opted for only when taking the policy rather than mid-term. There could be situations where the events are stopped due to the malicious intentions of outsiders, causing considerable losses to the organizers.

Adverse Weather & Unseasonal Rain Cover

Events are usually organized indoors, but some events could be organized outdoors, which are exposed to weather conditions. Weather conditions such as unseasonal rain, floods, cyclones, dust storms, etc., could damage the property and lead to the cancellation of events. Such perils could happen when one is unprepared to handle them and may expose vulnerabilities in the planning. One may opt for an additional premium for adverse weather and an unseasonal rain cover add-on to overcome this. Event organizers should prefer adverse weather add-ons in places such as Rajasthan, where the chances of desert storms are high.

Terrorism Cover

The other add-on in the event insurance is the terrorism cover which includes the loss or damage to the insured property due to terrorist activities. The add-on is designed to cover the damages or losses that result directly or indirectly related to terrorist acts, regardless of other events contributing to the same sequence or that resulted in damage. Terrorism cover can be useful for events being organized in terrorist-infected areas. Terrorism cover could be taken on payment of an additional premium at the time of issuance of the policy.