Acts of God
On Friday, March 14, 2008 – my parents 49th wedding anniversary! – Atlanta was hit with an “Act of God” defined as a tornado. What exactly is an “act of God?” An “Act of God” is actually a legal term that means “events outside of human control, like a flood or a storm for which no one can be responsible.” The local news did an outstanding job updating the community about the downtown residents but as a meeting and event planner, my thoughts immediately went to thinking about the groups and conventions that were hosting meetings in downtown Atlanta. According to the Atlanta Convention and Visitors Bureau (ACVB) website, Atlanta has over 2,000,000 square feet of meeting space making it in the top 5 largest meeting and destinations cities in the world. Atlanta has in fact 91,869 hotel rooms at 743 hotel properties.
My research revealed that on Friday, there were 4 major events occurring in downtown. One in fact was a large Dental Convention that was forced to shut down and end early. As a part of their convention, they had a large exhibit area that held millions of dollars worth of dental equipment that had to be left unattended for 2 days. I can only imagine the amount of revenue lost to this convention due to this storm. Revenue was lost from hotel room commissions, travel for speakers that had to be changed, registrations that may have to refunded, food and beverage that was paid for at hotels that weren’t consumed, advertising dollars spent on event magazines that were soiled or lost and not to mention the loss of sales on the exhibit room floor. The Atlanta news did speak with the Dental Convention Meeting Department and they were properly insured so they were able to focus on the safety of their delegates and not be burdened with how they are going to cover their losses.
As a meeting and event planner, I always advise my clients to purchase event insurance. Since I work with a lot of faith based clients (church folks) I often am told that they have insurance through their church and don’t need any additional coverage. This is a huge error and can be very costly to a ministry. When planning your next event, here’s a list insurance types you should consider:
1. Special Event Liability—Accidents Happen! Special Event Liability insurance that covers you for third party bodily injury and property damage that can unfortunately, occur at a special event.
2. Event Cancellation—Prepare For the Unexpected! You never know when the event you’ve worked so hard to prepare gets interrupted by hurricanes, tornados, or other disasters. Event Cancellation Insurance protects your event expenses and revenue should your event get cancelled or abandoned due to reasons beyond your control. This covers Acts of God.
3. Weather—Rain or Shine…You’re Covered! Weather insurance protects against adverse weather conditions that can often reduce attendance and your revenue opportunities. It’s designed to offset not only the revenue lost due to reduced attendance but other sources such as concessions, food and even parking! It protects your events against covered negative consequences resulting from Rain, Snow, Wind and Temperature.
4. Business Owners Policy— this is for Event and Meeting Planners. The Business Owner’s Policy offers you a complete selection of property and business liability coverage with options that allow you to custom tailor a plan that suits your needs!
5. Property Protection is available with varying deductibles for physical damage to your building or rented space, office equipment, valuable papers and records, window breakage, vandalism, theft, crime and employee dishonesty.
6. General Liability coverage protects against 3rd party complaints for bodily injury and property damage, personal and advertising injury, premises and operations as well as product liability.
7. Professional Liability— Better To Be Safe Than Sorry! Professional Liability coverage, also known as Errors and Omissions Insurance is precautionary protection that will indemnify or release you for a loss sustained because of an error or oversight on your part. For instance, if an event you planned was cancelled and you failed to offer your client Event Cancellation insurance, that client could potentially sue you for their financial loss. Professional Liability ensures that your interests are put first.
8. Event Cancellation – Non Appearance – if a major speaker or artist fails to appear for your event, Event Cancellation insurance will cover the loss sustained by you from their non appearance.
In conclusion, you can’t afford NOT to have insurance. Please make sure you budget it as a line item. When contacting an agency, ask for references and check their payment policies.
Remember…Excellence Matters!
On Friday, March 14, 2008 – my parents 49th wedding anniversary! – Atlanta was hit with an “Act of God” defined as a tornado. What exactly is an “act of God?” An “Act of God” is actually a legal term that means “events outside of human control, like a flood or a storm for which no one can be responsible.” The local news did an outstanding job updating the community about the downtown residents but as a meeting and event planner, my thoughts immediately went to thinking about the groups and conventions that were hosting meetings in downtown Atlanta. According to the Atlanta Convention and Visitors Bureau (ACVB) website, Atlanta has over 2,000,000 square feet of meeting space making it in the top 5 largest meeting and destinations cities in the world. Atlanta has in fact 91,869 hotel rooms at 743 hotel properties.
My research revealed that on Friday, there were 4 major events occurring in downtown. One in fact was a large Dental Convention that was forced to shut down and end early. As a part of their convention, they had a large exhibit area that held millions of dollars worth of dental equipment that had to be left unattended for 2 days. I can only imagine the amount of revenue lost to this convention due to this storm. Revenue was lost from hotel room commissions, travel for speakers that had to be changed, registrations that may have to refunded, food and beverage that was paid for at hotels that weren’t consumed, advertising dollars spent on event magazines that were soiled or lost and not to mention the loss of sales on the exhibit room floor. The Atlanta news did speak with the Dental Convention Meeting Department and they were properly insured so they were able to focus on the safety of their delegates and not be burdened with how they are going to cover their losses.
As a meeting and event planner, I always advise my clients to purchase event insurance. Since I work with a lot of faith based clients (church folks) I often am told that they have insurance through their church and don’t need any additional coverage. This is a huge error and can be very costly to a ministry. When planning your next event, here’s a list insurance types you should consider:
1. Special Event Liability—Accidents Happen! Special Event Liability insurance that covers you for third party bodily injury and property damage that can unfortunately, occur at a special event.
2. Event Cancellation—Prepare For the Unexpected! You never know when the event you’ve worked so hard to prepare gets interrupted by hurricanes, tornados, or other disasters. Event Cancellation Insurance protects your event expenses and revenue should your event get cancelled or abandoned due to reasons beyond your control. This covers Acts of God.
3. Weather—Rain or Shine…You’re Covered! Weather insurance protects against adverse weather conditions that can often reduce attendance and your revenue opportunities. It’s designed to offset not only the revenue lost due to reduced attendance but other sources such as concessions, food and even parking! It protects your events against covered negative consequences resulting from Rain, Snow, Wind and Temperature.
4. Business Owners Policy— this is for Event and Meeting Planners. The Business Owner’s Policy offers you a complete selection of property and business liability coverage with options that allow you to custom tailor a plan that suits your needs!
5. Property Protection is available with varying deductibles for physical damage to your building or rented space, office equipment, valuable papers and records, window breakage, vandalism, theft, crime and employee dishonesty.
6. General Liability coverage protects against 3rd party complaints for bodily injury and property damage, personal and advertising injury, premises and operations as well as product liability.
7. Professional Liability— Better To Be Safe Than Sorry! Professional Liability coverage, also known as Errors and Omissions Insurance is precautionary protection that will indemnify or release you for a loss sustained because of an error or oversight on your part. For instance, if an event you planned was cancelled and you failed to offer your client Event Cancellation insurance, that client could potentially sue you for their financial loss. Professional Liability ensures that your interests are put first.
8. Event Cancellation – Non Appearance – if a major speaker or artist fails to appear for your event, Event Cancellation insurance will cover the loss sustained by you from their non appearance.
In conclusion, you can’t afford NOT to have insurance. Please make sure you budget it as a line item. When contacting an agency, ask for references and check their payment policies.
Remember…Excellence Matters!
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1 comment:
Good words.
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