The worlds of event organisation, production and promotion, come with many complex obligations and duties of care in a legal and insurance context. Insurance riders in contracts are often a thorny negotiation and it’s commonplace to see insurance requests that bear little resemblance to what is practical or feasible in the legal context of the show or event in question. The application of US Tort law, to events in the UK or Europe, for example is all too common. The tort laws of the United States and England and Wales, while sharing common roots in English common law, have evolved in distinct ways. Yet, every week we [LMP] see contracts that are clearly ‘cut and paste’ from contracts in territories where those legal treatments don’t gel.

Managing public liability exposures has become an increasingly focal issue. With large crowds, complex logistics, and high-profile personalities, the potential for mishaps is ever-present. This landscape is seeing a notable shift in the UK, where regulatory and commercial pressures are driving the demand for significantly higher limits of indemnity. However, in real terms, the claims landscape has barely shifted in the last 15 years or more. In the UK and Europe, we’ve not seen significant punitive damages awarded since the Madonna stage collapse in Marseille in 2009. The final cost of that claim believed to be in the region of EUR 6m for the terrible injuries and loss of life that occurred as a result of demonstrable negligence. The 2017 Manchester Arena bombing negligence claim, yet to be fully settled.

Understanding Public Liability Exposures

Public liability insurance is designed to protect event organisers and promoters from the financial fallout of accidents or injuries that occur during their events. These incidents can range from slips and falls to more severe accidents, such as stage collapses or crowd-related injuries. Given the unpredictable nature of large gatherings, the financial implications of such events can be substantial.

The Trend Towards Higher Indemnity Limits

In recent years, there has been a marked increase in the indemnity limits required by venues, municipalities, and other stakeholders. Where previously a £5m to £10m coverage might have sufficed, the norm is now shifting towards limits of £20m and above. This trend reflects several underlying factors, but not necessarily a correlation to the value of claims:

1. Increased Risk Awareness: With high-profile incidents making headlines, there’s a greater awareness of the risks associated with large events. This awareness translates into higher demands for robust insurance coverage. The US claims trend skews the narrative and leads to the impression that the same kind of damages are awarded in the UK and Europe. Put simply, that is not the case.
2. Regulatory Changes: Various European countries have updated their regulations, compelling organisers to secure higher limits of indemnity to ensure adequate compensation in case of accidents.
3. Litigation Trends: There’s been a rise in the US in the frequency and size of claims made against event organisers, driving the need for higher insurance limits to protect against substantial legal and compensation costs. Claims in the UK and Ireland tend to lead the trend, but the rest of Europe is largely unaltered.
4. ‘Martyn’s Law’: The incoming Protect Duty, or ‘Martyn’s Law’ is likely to lead to a more security-conscious environment for public venues, which could have mixed effects on public liability insurance. While initial costs and premiums might rise due to the need for enhanced security measures, the long-term effect could be a more stable and potentially lower risk landscape, benefiting both insurers and insured parties.

The Impact on Event Organisers and Promoters

For event organisers and promoters, these increased requirements mean reassessing their insurance strategies. Higher limits of indemnity, while offering greater protection, also come with higher premiums. This financial burden can be significant, particularly for smaller or mid-sized organisations. However, failing to secure adequate coverage can expose organisers to severe financial risks and potential business insolvency in the event of a major incident.

LMP Group: Your Partner in Comprehensive Event Insurance

In this evolving landscape, having a reliable insurance partner is essential. This is where LMP Group steps in. Specialising in bespoke insurance solutions for event organisers, concert producers, and promoters, LMP Group offers coverage tailored to the unique risks of the industry.

Why Choose LMP Group?

1. High Limits of Indemnity: With policies that meet and exceed the current market demands, including limits of £30m and more, LMP Group ensures that you are adequately protected.
2. Competitive Pricing: Despite the higher coverage limits, LMP Group is committed to offering competitive pricing, ensuring that comprehensive protection is accessible without breaking the bank.
3. Financial Stability: Partnering with highly financially rated insurers, LMP Group guarantees that your policy is backed by reliable, robust financial support, providing peace of mind in every situation.
4. Expertise in the Field: With years of experience in the event insurance sector, LMP Group understands the nuances and specific needs of event organisers and promoters, offering tailored advice and solutions.

Take Action Today

In today’s environment, ensuring you have the right level of public liability insurance is not just a regulatory requirement but a crucial step in safeguarding your business. Don’t let the complexities of the insurance landscape deter you.

Reach out to LMP Group at lmp-insurance.com to explore their range of solutions tailored to your specific needs. With their expertise, competitive pricing, and robust insurance partners, you can focus on what you do best – creating unforgettable events – while they take care of your insurance needs.