About the Episode
In this episode of “Corralling the Chaos,” Angela Alea and Jason Packham, an entertainment insurance expert from NFP, discuss the critical importance of understanding and managing insurance coverage in the event industry. From common misconceptions to the nuances of adequate coverage, the conversation highlights key insights to help event companies avoid costly mistakes and ensure they are properly protected.
Meet Your Speakers
– Angela Alea: President & CRO of LASSO, Host of Corralling the Chaos
– Jason Packham, Entertainment Insurance Broker, NFP
Listen
Watch
Takeaways
Takeaway: Misunderstandings and mistaken assumptions about insurance coverage can be costly for companies in the event industry.
In the webinar, Angela emphasized the importance of understanding the nuances of insurance in the event industry. Jason explained that many businesses make the mistake of assuming their local insurance broker understands their needs, leading to potential coverage gaps. He revealed, “One of the big things I find is, like most insureds that I end up, most people don’t think that there’s actually insurance brokers that specialize in entertainment.” He stressed the importance of having an insurance broker that specializes in your industry.
Jason also highlighted common misconceptions about insurance coverage, such as assuming all equipment is covered regardless of location. He noted, “They don’t realize that they need an in memory or equipment floater policy to cover that and make sure that it’s covered when it’s out and about.” Furthermore, he discussed the importance of understanding the terms of contracts with clients, emphasizing the need for indemnification to protect against potential claims.
Takeaway: Companies in the event industry should carefully review their insurance policies and ensure their coverage is adequate for their specific needs and risks.
Jason shared that a common mistake he sees in the event industry is under-insuring or incorrectly insuring valuable equipment. He explained, “They’ll, I’ll find out that they only have BPP, which stands for business personal property. And that means your property is covered at your location or within a thousand feet, usually. But it’s going to venues, it’s going to events all over the country.”
Additionally, he highlighted the importance of thorough contract review to ensure adequate coverage for subcontracted work. He recommended, “If you’re signing a contract with a client or a venue, right, they’re making you… carry a certain limit. So when you bring in a subcontractor that’s doing something for you, that is being basically treated with the client as you. So if they don’t have the coverage, then it’s going to go on you.” He also stressed the importance of understanding workers comp codes, as incorrect classification can lead to expensive errors.
Takeaway: Event companies should be proactive in managing their insurance coverage and contracts to avoid potential liabilities and financial losses.
Jason emphasized the importance of regular reviews and audits of insurance policies, especially as businesses evolve and grow. He suggested, “Learn from your mistakes and learn from your peers. That’s why we know each other through an association that gets together and they kind of share misfortunes or best business practices.”
He also cautioned against the assumption that having insurance in place absolves the need to scrutinize contracts with clients. Jason stressed, “What you wanna make sure is that your client is indemnifying you, which is holding you harmless.” He also highlighted the need for careful management of subcontracted work, ensuring vendors carry the same or even more insurance coverage than the hiring company.
Lastly, Jason emphasized the value of industry-specific knowledge and expertise when it comes to insurance, asserting, “Having a broker that’s in your niche is definitely beneficial.” He encouraged companies to seek advice and understand the specifics of their insurance needs to avoid costly mistakes and ensure adequate protection.
Insights surfaced
– Many companies in the event industry do not realize there are insurance brokers that specialize in entertainment, leading to potential gaps in their coverage.
– Misunderstandings about coverage can lead to companies being underinsured, particularly when it comes to equipment that is transported for events.
– Companies often assume they have theft insurance that covers them at client sites, but this may not always be the case.
– It is crucial for companies to regularly audit their policies and review their coverage as their business changes.
– Companies should ensure their subcontractors carry the same level of insurance they do to avoid being liable for any issues that may arise.
– Misclassification of workers can lead to insurance issues.
– There is no insurance to protect against misclassification or fraud.
