Top Five Questions about Events Insurance

In the Events industry, insurance is often only discussed when a contract is signed, a venue demands proof of cover, or something goes wrong on site. But understanding your insurance is more than a box-ticking exercise - it’s a critical part of protecting your crew, clients, and business.

Below are five of the most common questions event professionals ask when it comes to Event insurance.

1. Are freelancers covered under my Liability policy?

In many cases, yes, but it depends on the type of freelancer you’re working with.

Most insurance policies will cover Labour Only Freelancers under your Public Liability and Employers Liability insurance, as long as they are working under your instruction and operating as an extension of your team.

However, Bona Fide Subcontractors are usually not covered. These subcontractors work under their own control, provide their own expertise and processes, and are generally responsible for their own liabilities. Because of this, they typically need their own insurance policies in place.

Even if your policy covers Labour Only Freelancers, it’s still recommended that you ask freelancers to hold their own Public Liability insurance as an added safeguard. While this is not always required by insurers, it reduces risk and can help prevent disputes if a claim arises.

2. Do I need Employers Liability insurance?

In the UK, Employers Liability insurance is a legal requirement under the Employers’ Liability (Compulsory Insurance) Act 1969. Many people assume this only applies to limited companies, but that isn’t true.

If you have anyone working under your instruction - even temporarily - you may be classed as an employer. This includes Labour Only Freelancers, volunteers, apprentices and part-time staff.

The law requires employers to hold at least £5,000,000 of Employers Liability cover. This protects you if someone working for you claims they have suffered from an injury or illness due to their work and alleges it was your fault. Failing to have Employers Liability insurance can result in fines of up to £2,500 per day, plus an additional £1,000 fine for not having proof of cover available when required¹.

3. Does Cancellation insurance cover Force Majeure?

In short, no. Force Majeure is not automatically covered. Force Majeure is a contractual clause that removes liability when an extraordinary and uncontrollable event prevents contractual obligations being fulfilled.

While Event Cancellation insurance is designed to cover disruption caused by unexpected events, policies vary significantly in what they define as an insured trigger. This means it’s impossible to assume your cancellation policy will automatically align with a Force Majeure clause in your contract.

For example, “Act of God” is not typically something you can insure against in broad terms. However, extreme weather may be covered if you purchase Adverse Weather cover, particularly if conditions make an event unsafe to build or attend.

The best way to ensure your cancellation policy supports your contract is to have the Force Majeure wording reviewed, so you can confirm what is covered as standard, what can be added, and what the insurance market excludes entirely.

4. What is the difference between Territorial and Jurisdiction limits?

Insurance policies don’t just contain financial limits. They also include Territorial and Jurisdiction limits, both of which can restrict whether a claim is valid.

Territorial limits define where an incident must occur for your policy to respond. If your policy is “UK only,” then the incident must happen within the UK. Standard territorial options include; UK only, UK and Europe, Worldwide excluding North America and Worldwide.

Jurisdiction limits define which legal system a claim can be brought under. For example, a policy with “UK jurisdiction only” would not respond if legal proceedings are taken through a US court.

This is especially important when contracts specify disputes must be handled under a particular jurisdiction.

5. Why am I being asked for Professional Indemnity insurance?

Professional Indemnity insurance is becoming increasingly common in event production contracts. It protects you against claims alleging negligence in the service you provide.

In simple terms, it covers you when something goes wrong professionally rather than physically. Professional Indemnity can also extend to claims involving intellectual property infringement. It's often more expensive and technical than Public Liability, so it’s important to get experienced advice to ensure it reflects your activities and contractual obligations.

How we can help

Got a question about your event insurance, contract requirements, or whether your current policies are fit for purpose? Speak to our specialist team who can help review your cover, identify any gaps, and make sure you have the right protection in place before your next project goes live.

Sources

1. Employers' liability insurance | Hiscox | https://www.hiscox.co.uk/business-insurance/employers-liability-insurance