Contracts – The Devil is in the Detail
In the world of insurance we know all only too well about small print and how much it matters. If you want your insurance policy to respond then you need to know about the small print and what it means.
Event organisers who simply refuse to return the signed contract are damaging their reputation with venues and risking their whole event. However, it is not only organisers that need to ensure they have the right Contracts in place but also a whole myriad of other parties that are involved in the delivery of events and productions. An organiser will feel the brunt of most of them but there are also the Contracts between outside hire companies to Venues and Sub Contractors to Contractors. The list becomes a little endless, so I guess my point is that we all need to be aware of the implications of not understanding our Contracts.
Try buying a car from a showroom without signing the necessary paperwork, try getting a bank loan, setting up a Direct Debit, filling in a Tax Return or obtaining a passport, all of these have contracts or agreements that need signing before anything happens. We are used to having to complete forms whether we like it or not.
It is obvious but Contracts or agreements need to be checked, as often they can be incorrect and you don’t want to have run your event and then still be trying to decide on what was in the contract or not.
Is Your Contract in Place?
Insurance companies will want to know that a contract is in place with the venue, caterers, speakers, etc, or else they may not pay should there be a claim. It really is quite straightforward. This is where evidence of a Contract will protect you much better than a quick e-mail confirmation.
On many insurance proposal forms there will be a question about a contract being in place between you and the venue. Answer No to this and the insurance is unlikely to start. The proposal form is the basis of the Contract between you (the Insured) and the Insurer (Insurance Company). Then of course there is just that matter of Consideration, which is you paying the premium for the insurance.
Check the Details
Now you have a policy and have paid for it, you still need to be mindful of the detail of your insurance policy. You will need to check that you understand what is required of you. On many Public Liability insurance policies, there will be a clause to say that you have to check Sub Contractors to make sure they have a Public Liability policy in place. Ignore this clause at your peril, as insurers could repudiate a claim on the basis that you didn’t check.
We understand that this can all be very daunting, but this is when you should speak to your advisor, agent or broker and make sure you understand the implications.