Cunnart Associates

5 Steps to Easier Insurance Buying
by Joy=20 Jackson

If you find buying insurance coverage for your event = or=20 business difficult and frustrating, this article is for=20 you.

One of the first things you learn as an event = organizer is the=20 need to satisfy venue owners, regulatory bodies and bankers. The = right=20 type, and amount, of insurance coverage is one detail you cannot = avoid.=20 This makes insurance an essential product that coincidently, also = ensures=20 your business=92 financial survival in a world full of opportunity = and risk.=20

While researching my new book =93Special Events are = Special=20 Risks=94, I was struck by the incredible number of details that = event=20 organizers must supervise to ensure a successful event. To manage = such a=20 large number of items truly does require =91organizing=92. = Each detail=20 can become a problem, leading to an insurable claim, if not = handled=20 properly.

There are three basic categories of = risk:

1. risk of injury or property damage to anyone at the = event,=20 including attendees, volunteers and contracted workers,

2. financial risks include theft of goods or money at = the=20 event, while being taken to a place for safe deposit and loss of=20 sponsors or clients due to problems, and

3. damage to your firm's reputation or that of your=20 sponsor.

Make insurance buying simpler with just 5 easy=20 steps.

When buying insurance, discuss with your insurance=20 representative all 3 risk types and ask for his/her = suggestions for=20 the =91most correct=92 insurance policies for your operations. If = you have=20 been in business for several years, you already have insurance in = place.=20 When was the last time you reviewed the coverage to decide if it = was the=20 =91best=92 for your operations? If it hasn=92t been reviewed in 2 = years or more=20 =96 now is the time!

Choosing the right types of insurance policies is = similar to=20 choosing the right jigsaw puzzle pieces. Placing what looks like = the right=20 piece in the wrong location will leave you with gaps. Buying the = wrong=20 types, or too few, insurance policies can leave critical gaps in = insurance=20 coverage. Conversely, buying inappropriate coverage will cost = money=20 that could have been better used to promote and run your event.=20

Step 1 =96 Choose the right insurance advisor. This may be = an insurance=20 broker or agent. (A broker deals with many insurers; an agent = deals with=20 only one.) Under Ontario law, an insurance broker represents you, = the=20 client =96 not the insurance company. You need a broker who = understands=20 business insurance. The nice man or woman who provides your car = and house=20 insurance may not have sufficient expertise to assess the risks = inherent=20 in your business. They also may not have business contacts with = commercial=20 insurers to obtain quotations for your business.

Step 2 =96 Take sufficient time to educate your insurance = broker.=20 Be sure that they understand your business. Explain the type(s) of = events=20 you run. Are they held indoors, in the open air or a combination = of both?=20 Do you run sports events just for fun =96 or are they serious = competitions?=20 Your events may be a combination of entertainment and education or = coaching. Will there be food and (especially alcoholic) beverages=20 provided? Specific details of the event(s) you run affect the = degree of=20 risk inherent in the activities. Your broker is your = representative to the=20 insurer. The better the broker knows and understands your = business, the=20 better their chance of getting you the most appropriate = coverage and=20 pricing.

Step 3 =96 Maintain good documentation. Do you have = available documents=20 that describe the length of time you have been running = events? When=20 your business is new, be prepared to explain the previous event = experience=20 of yourself and your workers. If there have been accidental losses = (e.g.=20 attendee injuries, damage to property, thefts) be prepared to = provide a=20 record of them.

Even if the losses were not insured, insurers = consider them an=20 important record of that event. In particular, describe what you = learned=20 from that incident and what actions you have taken to prevent it = from=20 recurring. Also, financial records, copies of supplier = contracts and=20 venue lease agreements are all valuable sources of information for = insurers and brokers.

Step 4 =96 Practice =93risk management=94. There is a huge = variety of risks=20 that face event holders. This is one reason why insurers are so = cautious=20 about insuring them. Virtually every event brings with it = different=20 challenges, in part because of event organizers desire to make = their event=20 unique, interesting and attractive to their target audience. In = advance,=20 analyze your event activities and be ready to identify the most = likely=20 things to go wrong and explain how you are treating these hazards. =

Generally speaking, risk management is the process of = identifying what can go wrong, prioritizing those problems and = deciding=20 what you can do about them. For example, establish policies and = procedures=20 to prevent incidents and minimize the consequences of those = instances that=20 do occur. Ensure that your broker and insurer are informed of = these risk=20 reduction activities. Using a risk management process makes = you=20 appear more conscientious and a better risk.

Step 5 =96 Protect your reputation. It takes years to = establish a good=20 reputation. It only takes 1 serious incident to destroy it. = Insurance=20 brokers and underwriters pay attention to news, just as everyone = else=20 does. Negative reports on your event can impact your ability to = obtain and=20 keep appropriate insurance coverage at a reasonable = price.

Buying business insurance can be a simple process. = However, the=20 complexity and variety of event operations and the = specialized nature=20 of business insurance means that a buyer can easily make poor = choices =96=20 especially if price is the only factor being used. The best value = in an=20 insurance purchase is not always the cheapest. By using these five = steps=20 you can obtain (and keep in place) insurance that brings you, your = sponsors, regulatory bodies and bankers the greatest degree = of=20 financial comfort.

Joy Jackson. FCIP, FRMCunnart = Associates

First=20 Published in "SUCCESS WITH ONTARIO" SPRING EDITION=20 2006

Articles=20 Homepage