Tag: COVID-19'

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Event insurance, are you covered for Coronavirus COVID-19?

Before the breakout of Coronavirus, insurance cover for communicable diseases was either part of the standard policy or could be added at low cost. However, since January 2020, when the insurance companies realised the extent of the problem, this cover was removed. It is unlikely that an event organiser will be able to add it to an insurance policy now as it is classed as a pre-existing condition and listed under excemptions.

However, the way to get around this going forward is for organisers to put clauses in their contracts with event attendees, speakers, exhibitors, suppliers and venues.

If you think you are going to cancel an event, the best thing to do is speak to your insurance company as early as possible, take advice and understand what the procedure and terms are. Make sure you’ve got all the necessary evidence to claim successfully. The worst thing to do is present them with a claim after the event has been cancelled, without notice. Each claim will be assessed on an individual basis, taking the government advice into account and whether Force Majeure applies.

Force Majeure

This is a provision in a contract that allows a party to suspend or terminate the performance of its obligations when certain circumstances beyond their control arise, making performance inadvisable, commercially impracticable, illegal, or impossible. A recent example is a law passed by the Swiss government prohibiting public events of more than 1,000 people which caused the cancellation of the Geneva Motor Show. Some other considerations are if the city/country is in a state of emergency, flights have been suspended or travel has been prohibited.

  • The law that applies will be the law of the country where the event is being held
  • If your meeting is in the UK but attendees are from China, USA or EU countries which are not operating flights to the UK
  • Hotel contracts will usually have a Force Majeure contract that applies to the hotel’s location, so would only apply if that destination prevents the event.

Will Coronavirus be covered by future insurance?

After 9/11 very few event insurance policies would cover terrorism, but as time passed the option was offered with an expensive premium in proportion to the risk. In the longer-term insurance underwriters adjusted their assessments and exposure to claims and the rates reduced. At the moment we don’t know how long Coronavirus will last and the impact on events in the future. When will a vaccine be available or will the virus die out in due course? There may be legislation to address insurance claims due to Coronavirus in the future, but in the short-term it’s better for event organisers to take matters into their own hands and build clauses into their contracts.

This article does not constitute legal advice and we advise organisers to take independent legal guidance which is appropriate to their circumstances. This article is not intended to be relied upon to make specific decisions.

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Hotels to turn into temporary hospitals

The health secretary said empty hotels across the country would help ease the pressure on hospitals that are filling up with patients. Speaking on the BBC’s Andrew Marr Show on Sunday (15 March), when asked if more hospitals should be built, he responded: “We’ve seen that many hotels are empty, so we’ve got ready-built facilities looking after people.”

On the back of this suggestion, Best Western Great Britain has said it will consider turning hotels into temporary hospitals if the NHS needs additional bed space during the coronavirus outbreak.

Rob Paterson, chief executive of Best Western Great Britain, said: “We are in unprecedented territory so we would be willing to take unprecedented steps to support the national effort.

“If the NHS wants additional bedspace, and we can partner with other companies to provide the right medical equipment and supplies and we can do it safely, then we would be willing to start having those conversations immediately. Whatever we can do to help.”

Best Western has approximately 260 hotels in Great Britain, with almost 15,000 bedrooms.

Keeping check back with EDGE Venues Insights for the latest coronavirus updates, including news on whether other hotels will consider temporary hospitals with their properties.

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Proceed, postpone or cancel?

Decisions need to be made about forthcoming events that are being organised, whether to continue as usual, postpone them until later in the year or cancel them entirely. We saw yesterday that Imex has cancelled their event in Frankfurt in May. So, with the spread of Coronavirus, how should you come to a decision how to proceed in the next few months?

The first consideration is to make an informed decision, based on facts. We work in a collaborative and supportive industry and everyone understands the value of the global events industry. The most important factor is making a choice that is best for the business and whether the company’s objectives can be met without the event or if there is reduced attendance. What is the event’s purpose and what are the alternatives? Once this decision has been made, then the legal and insurance factors come in to play, but these should not be the driving factor whether the event should go ahead.

Force Majeure

The question is whether damages have to be paid if the conference is cancelled. So, does Force Majeure apply? It does if the event is illegal, impossible or commercially impracticable to hold. A recent example is a law passed by the Swiss government prohibiting public events of more than 1,000 people which caused the cancellation of the Geneva Motor Show. Some other considerations are if the city/country is in a state of emergency, flights have been suspended or travel has been prohibited. Fear is not force majeure.

Cancellation or postponement

Establish the critical mass of attendance for the purpose of the event to be successful. If 10% of attendees cannot be there it probably won’t have a significant impact, but if 30% or more don’t attend then that’s a different situation. Set a date when the decision will be made whether to proceed or not, considering travel arrangements, event set up, suppliers etc and make a well-thought-out business decision.

Contracts

Check all contracts: venues, DMCs, a/v providers, caterers, other suppliers, as well as attendees, exhibitors and sponsors. Is there an event cancellation policy in place and what will this mean? Take advice about whether the force majeure provisions apply, your legal team can argue about cancellation and attrition fees. It’s in everyone’s interest to proceed with the event, so if numbers are reduced then speak to the venue about minimum attendee numbers, accommodation and the spend on food and beverage because it is in everyone’s interest to negotiate. If there’s a new agreement make sure you have an addendum signed by both parties. If additional hygiene practices are required, find out what the venue is going to put in place and get these agreed in writing.

Insurance

There are two factors here. Firstly, the event insurance, check your general liability insurance, which should cover you if an attendee becomes ill at an event and have a claim against your company. Does this specifically cover COVID-19? Some insurance companies excluded COVID-19 from their policies since January 2020 as it became more prevalent. Secondly, there is business travel insurance which may come into effect if a company imposes travel restrictions to their employees.

Crisis Management and Communication

There should already be a plan in place and even if it isn’t entirely appropriate to the current circumstances, then elements may help to manage the situation.

Communicate with the stakeholders separately and stick to the facts. Keep the message simple and clear. If you are proceeding, then tell people about the hygiene practices onsite and how the event will be managed. Update any statements as necessary before and during the event.

This article does not constitute legal advice and we advise organisers to take independent legal guidance which is appropriate to their circumstances. This article is not intended to be relied upon to make specific decisions.

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COVID-19 Coronavirus outbreak causes uncertainty throughout the events industry

Working alongside venues, venue bookers and attendees there is a great deal of uncertainty surrounding the COVID-19 Coronavirus situation globally. Hotels and venues are working above and beyond to ensure the safety of both staff and guests. They are providing up-to-date information to help both pre and post events.

Last Friday, the World Health Organization (WHO) released a document to help those that are planning large events. Within this document contained key recommendations including preventative measures, risk assessments and crowd density. The document also provides critical guidance if any attendees display any symptoms consistent with the COVID-19 virus during an event.

The following guidance has been excerpted from the WHO document:

  • Promote hand hygiene and respiratory etiquette. Include this advice within multilingual informational materials.
  • Soap and water or alcohol hand-sanitizers and tissues should be easily accessible in all common areas.
  • Where possible, event organizers should consider distancing measures to reduce close contact among people during a large event including staggering arrivals and minimising congregations at sanitary stations and food and water distribution areas.

A UK-wide action plan to tackle Coronavirus was agreed by today’s COBRA meeting which was chaired by Boris Johnson. Elements of this action plan will start to appear as early as next week.

Here at EDGE Venues, we will continue to provide relevant updates and be in close contact with those affected within the industry. For event organisers planning an event, please see our advice to help you plan.