How can you negotiate liability insurance with vendors for your event?

1 Assess your risks

Before you contact any vendors, you need to assess the risks involved in your event, and what kind of liability insurance you need. Consider factors such as the type, size, and location of your event, the activities and services you offer, the number of attendees and staff, and the potential hazards or accidents that could occur. Based on your assessment, you can determine the minimum amount of coverage you need, and the types of liability insurance you should have, such as general liability, professional liability, liquor liability, or property damage.

3 Negotiate the terms

When you have shortlisted the vendors that meet your criteria, you can negotiate the terms of the liability insurance with them. It is wise to have a written agreement that specifies the amount and type of coverage each party will provide, as well as the responsibilities and obligations of each party in case of a claim. In addition, the agreement should include the process and timeline for reporting and resolving any incidents, indemnification and hold harmless clauses that protect each party from liability, additional insureds that will be added to each policy, and cancellation and termination clauses that outline the consequences of breach or non-performance. Furthermore, ask the vendors to provide updated COIs before the event, and keep copies of them for your records.

4 Review the contracts

Before you sign any contracts with the vendors, you should review them carefully and make sure they reflect the terms you negotiated. You should also consult with your own insurance agent or lawyer to verify the validity and adequacy of the contracts. If you find any errors, inconsistencies, or ambiguities in the contracts, you should ask the vendors to clarify or amend them. You should also avoid signing any contracts that waive your rights, limit your claims, or expose you to unnecessary risks.

5 Monitor the performance

After you have signed the contracts with the vendors, you should monitor their performance and compliance with the liability insurance terms. You should communicate with them regularly and keep track of any changes or issues that may affect the insurance coverage. You should also document any incidents that occur during the event, and report them to the relevant parties as soon as possible. You should also follow up with the vendors after the event, and confirm that there are no outstanding claims or disputes.

Negotiating liability insurance with vendors for your event may seem daunting, but it is essential to protect your interests and reputation. By following these steps, you can ensure that you have adequate coverage, and that you and your vendors are on the same page.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?