What Does Event Liability Insurance Cover and Exclude in the UAE?

Introduction

Uncertainties are the only certain reality in today’s world. When an uncertain event occurs, it triggers unexpected consequences that burden the stakeholders involved. To mitigate such perils, event organizers, who will be held responsible for any misfortune during the event, opt for event liability insurance.

Event liability insurance is obtained to evade the financial damage that  is caused during or by the hosted events, whether they are corporate functions, weddings, festivals, conferences, or public  gatherings, it protects event managers from legal fees, lawsuits, financial losses and reputational damage.

This blog walks you through the inclusions and exclusions of event liability insurance, highlighting clearly what to expect when opting for this insurance to safeguard you against financial liabilities.

What Does Event Liability Insurance Cover in the UAE?

• Bodily Injury: Any physical damage caused by the negligence of the organizers or venue sustained by the participants, third parties or attendees are covered.
• Property Damage: Any material damage caused to the venue or third-party property by the event are covered, including repair and replacement costs, under this insurance
• Event Cancellation/Rescheduling: Expenses like deposits and marketing costs can be recouped when an event is halted or cancelled due to uncontrollable reasons like severe weather, sudden death, or any unavailability of resources.
• Alcohol-Related Incidents: If alcohol is served at the event with proper UAE government-issued licenses and compliance with local regulations, the expenses due to alcohol-related incidents may be covered.
• Legal Fees and Defense Costs: If the insured is sued due to any unforeseen event in the venue that is covered under the policy, the insurers will provide compensation. They also prevent the affected parties from filing a lawsuit by giving compensation beforehand.
• Vendor and Contractor Issues: Damage to personal goods or equipment owned by vendors or event organizers are generally excluded unless explicitly covered in the policy.

 

What Does Event Liability Insurance Exclude in the UAE?

• Natural events: Usually, events that are cancelled or postponed due to natural disasters such as floods, sandstorms, or extreme weather conditions are typically excluded. Pandemics and lockdowns are also usually not covered.
• Damage to Personal Equipment: If personal goods of the vendor or the organizers are damaged during or by the event, event liability insurance does not cover the losses.
• Pre-existing Conditions: Any injuries, malfunctions or accidents that have occurred before the day of the event are not subject to coverage benefits. For example, if a light fixation falls on the staff a day before the event, it will be covered under this insurance.
•  Illegal Activities or Venues: Event liability insurance in the UAE does not cover events involving illegal activities or those held at unlicensed venues. If an event violates local regulations or operates without proper permits, any resulting claims or losses will not be covered.
• Intentional Damage: Insurance policies exclude coverage for damages or accidents caused intentionally or due to gross negligence by staff, vendors, or organizers. Any deliberate harm or reckless actions leading to damage or injury will not qualify for claim settlement under the policy.
• Employee Injuries: Injuries to event staff or employees are typically excluded, as these are covered under worker’s compensation policies.
• Acts of Terrorism or War: Terrorist attacks, acts of war, or civil unrest are typically excluded from event liability insurance. Given the global nature of such risks, insurers often exclude them due to their unpredictability and severity.
• Intellectual Property Violations: Infringement of intellectual property, such as unauthorized use of music, trademarks, or copyright, is generally not covered under event liability insurance. Event organizers are usually responsible for ensuring they have the correct licenses or permissions.
• Specific activities: If your event involves high-risk activities (e.g., fireworks, amusement rides), you might need specific endorsements or separate policies to cover them. Some insurers refrain from providing water-related activities such as swimming and boating.

CoverB: Your Insurance Partner:

CoverB, a prominent insurance advisory in the UAE, provides event liability insurance that is distinct from the standard market offerings. By guaranteeing  seamless and efficient experience for businesses, CoverB guarantees insightful policy suggestions, comprehensive coverage, transparent claims processing, and full compliance with UAE laws and regulations. Each stage of the process is intended to ensure that your employees receive hassle-free benefits, thereby safeguarding and empowering both your business and your workforce.

Conclusion

Event liability insurance secures  organizers from unforeseen financial crises that will hinder their future projects. It empowers the  organizer to rely on comprehensive coverage to perform their tasks confidentially. In a culturally vibrant and thriving business environment like the UAE, obtaining robust insurance like event liability insurance ensures stability—it’s not just prudent—it’s essential.

It provides a crucial safety net, allowing  organizers to navigate the complexities of event planning without the constant fear of financial ruin due to unforeseen circumstances. This protection promotes innovation and motivates  organizers to take calculated risks, thereby enhancing the dynamism of the UAE’s event scene.