Event Risk and the Importance of Event Insurance Planning an event, whether it's a corporate function, concert, sporting event or festival, involves substantial time, effort, and financial investment. However, even the most meticulously planned events are vulnerable to unexpected disruptions. From severe weather and venue issues to vendor cancellations and public health concerns, these unforeseen circumstances are collectively known as event risks. If not properly managed, these risks can have significant financial and reputational consequences. Event risk refers to the potential for unanticipated events to impact the success or execution of a planned occasion negatively. These risks are varied and can include natural disasters, equipment failure, illness of key participants, transportation disruptions, or even civil unrest. In some cases, the event may need to be postponed or cancelled entirely, resulting in substantial financial losses and logistical headaches for organisers. Mitigating risk in an event environment is crucial to ensure the safety of attendees, staff, and vendors, while protecting the event’s success and reputation. The process begins with recruiting competent people and suppliers to support your event. The SASREA Act requires that an event organiser must appoint sufficient persons to be responsible for safety and security at an event, including an event safety officer, security officers or such other persons as may be prescribed. Guidelines published by the Department of Employment and Labour detail how a “competent person” should have the “required knowledge, training and experience in a specific field”. Whilst the guidelines don’t provide a general list of professions and the exact knowledge, training and experience required, they do require that the event organiser should be able to defend their reasons for selecting a competent person, and the person claiming to be competent should also be able to defend their level of “appropriate competence”. The simplest way of ensuring competence is to require the event safety officer to earn and maintain a professional designation in event safety. Event insurance also plays a crucial role in mitigating risk. Event insurance is a specialised policy designed to protect organisers against financial losses stemming from unforeseen problems. There are different types of event insurance coverage, including general liability, cancellation or postponement insurance, and coverage for specific issues such as property damage or injuries. Cancellation insurance is one of the most important forms of event coverage, reimbursing the policyholder for non-refundable expenses if the event cannot take place due to covered circumstances. For example, if a sudden storm renders an outdoor wedding venue unusable, cancellation insurance can cover lost deposits and other incurred costs. This protection can be especially valuable for large-scale events with complex logistics and substantial investments. Liability insurance, on the other hand, covers legal and medical expenses in the event that someone is injured during the event or if property is damaged. Venues often require organisers to carry liability coverage to protect all parties involved. Event insurance offers peace of mind. While it can't prevent the unexpected from happening, it does provide a financial safety net that can help organisers recover and regroup. In a world where uncertainty is always a possibility, securing event insurance is not just a wise decision—it’s a necessary one. For anyone planning an event—whether personal, professional, or public—assessing potential risks and investing in the right insurance coverage is crucial. Doing so not only safeguards your finances but also ensures your event has the best chance of success, even in the face of uncertainty. For our designated members working in the events industry, SACIA has partnered with GIB Film and Entertainment Insurance to design insurance solutions that are responsive to their needs. Members benefit from timely risk transfer solutions, generous cost and coverage improvements and the highest standards of practice. |
Contract of Appointment: Event Safety Officer 2025 In terms of clause 4(4)a of the SASREA Act, an event organiser must appoint a safety officer to assist with the planning and oversight of safety and security measures at an event. Download an APPOINTMENT LETTER that meets the requirements of the SASREA Act, as well as the requirements for event liability and professional indemnity insurance. We are making this document a public domain document that can be used freely and without compensation. If you make any changes to this document, it may impact your event liability and insurance cover. |