What insurance companies are really selling.
I remember when there used to be insurance salesmen that would go door to door selling a whole bunch of different insurances. And they did sell on the promise of protecting you against storm, theft or accidents. But does insurance protect you against anything? Yes and no. Insurance can protect you against the financial repercussions of an incident. Insurance cannot protect you from the incident itself. But this is exactly what insurance salesmen would make you believe. Now we don’t have insurance salesmen going door to door anymore, but we do have the online sales pitches.
What this all boils down to is that inexperienced event managers think they don’t have to do much about event safety. Why? they bought event insurance. So they think everything is taken care of. Well, it isn’t.
Event insurance only comes into play after an incident.
Or did you ever see an insurance representative on your event before something happened? I’ve never seen that. Once you’ve bought insurance, you won’t hear from them either. Unless of course, something happened. Then the process of claiming your insurance starts and that’s another can of worms I won’t open here.
The most common event insurance myths.
So let’s look at these common misconceptions. I didn’t include the obvious like hidden details in the fine print etc. Just the ones you probably aren’t aware of.
Myth #1: Event insurance reduces the amount of risk you are taking.
Truth: No, this is the event manager’s job.
Myth #2: Event insurance protects you from loss of reputation.
Truth: No, this is an uninsurable risk.
Myth #3: Event insurance covers your suppliers.
Truth: No, they need their own insurance.
Myth #4: Event insurance protects you from bad weather.
Truth: How could this even be possible? Nobody can predict the damages from a storm.
Myth #5: Event insurance protects against clients changing their minds.
Truth: Again, this is an uninsurable risk.
Myth #6: Event insurance protects you against criminal intent.
Truth: No insurance in the world will prevent a criminal act.
Myth #7: Event insurance covers damage to your own belongings.
Truth: No, it doesn’t. You’re only protected against claims from third parties.
Think about it. When has car insurance protected anyone from having a traffic accident? Never…or health insurance protected anyone from serious health issues? Never.
Event insurance only protects you and your company from carrying all the costs resulting from these situations. But if you can’t prove you reduced the risk of the accident happening to a reasonable level (you define what that is) your insurance won’t cover you.
So what do you do now?
You need to carry out your duty of care. That means you as the event manager do everything you can to keep your event safe. And if you don’t know how then you call in experts that do know-how. We Event Safety Experts are on your side trying to reduce the risk of anything happening at your event. This is like having event insurance that does protect you from harm!
Save money on your insurance premium
When you prevent accidents from happening by reducing risk, your insurance premium gets cheaper. And it’s for the simple reason that the risk your insurer has to cover is reduced.
In my next post, I’ll show you how to save money on event insurance.