What Can and Cannot be Insured When Running a Music Festival

Insurance can be a complex topic to understand particularly when related to organising and running any type of event. By their nature a music festival involves large numbers of people and organisers should take necessary action to ensure the safety of all visitors. Having the correct insurance policy can help to limit financial loss in cases when something does go wrong.

The specific legal insurance requirements may vary from country to country, but the principles are largely similar. There are elements of insurance that are mandatory and a legal requirement when running any event involving members of the public. In addition, it's normal practice for festival organisers to arrange additional insurance that relates to specific aspects of the event that they want to cover.

Public Liability and Employers Liability. 
These are the minimum insurance requirements usually required for any legal entity and cover costs related to accidental injury to members of the public as well as third party property damage. It can also cover legal costs and settlements if the festival is sued by a third party. The employer's liability insurance covers the organisation against costs arising from staff and volunteers getting injured.

Event Specific Insurance.
Organisers usually prefer to add insurance cover for items that specifically relate to running a festival. This can include coverage against the loss or damage of any equipment that is either hired or brought on-site by artists. A policy that covers the festival in case of cancellation, abandonment or postponement is considered an essential element for any outdoor summer music festival. Some Insurers offer policies that have additional allowances in the case of adverse weather.

Not Covered?
The coronavirus pandemic caused much debate in the events industry because the cancellation clauses came into effect for many organisers. This caused the insurance industry to revise their policies and remove cancellation insurance. In a post pandemic world these issues have since been resolved and unavoidable cancellation is now covered again, however, it’s worth checking any applicable small print. Failure to obtain the correct event licences or permits are often excluded from insurance policies because it could be considered an avoidable situation. In common with many insurance policies acts of terrorism or threats are not covered. It is important to note that any intentional acts of vandalism and arson that cause damage are often excluded from coverage too.

Festival organisers would be advised to seek expert help when arranging insurance cover for their events. Even exclusions can be covered by additional policies for an extra fee. In addition, most vendors, contractors, sponsors and artists will have their own insurance too so in the event of a claim those involved would have to decide who is the liable party and therefore which insurance policyholder will be held accountable.

For festival organisers planning their events using a software management platform like Festival Pro gives them all the functionality they need manage every aspect of their event logistics. The guys who are responsible for this software have been in the front line of event management for many years and the features are built from that experience and are performance artists themselves. The Festival Pro platform is easy to use and has comprehensive features with specific modules for managing artists, contractors, venues/stages, vendors, volunteers, sponsors, guestlists, ticketing, cashless payments and contactless ordering.

Photo by Kindel Media via Pexels

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