Difference Between Public Liability & Event Liability Insurance

Anyone involved in the event industry, including business owners who organise occasional events, should recognise the need for Event Liability Insurance. However, the different insurance options available can be confusing, particularly if you already have Public Liability Insurance. Let's clear things up and explore the value of Event Liability Insurance and how Dialdirect can help you get the protection you need for your event. 

Eventing industry boom in South Africa

The eventing industry is a major contributor to the South African economy and is booming post-COVID. The industry generates direct revenue through event planning and execution, as well as stimulating various ancillary services such as catering, décor, entertainment and venue hire. The ripple effect of this industry boom extends to tourism, with events attracting participants and spectators from across the country and even internationally.

Since April 2023,the South African National Convention Bureau (SANCB) has submitted 63 bids1 to host international meetings, incentives, conventions and exhibitions in South Africa between 2024 and 2029. With 16 bids already secured, these events are estimated to have a direct economic impact of about R71m between 2024 and 2025. There is the potential to attract more than 2,500 international and regional delegates during the same period.

This excludes the economic impact of iconic South African events such as the Rocking the Daisies music festival, annual sports events like the Comrades Marathon and Africa's famous Travel Indaba. The2023 Travel Indaba hosted more than 20,000 meetings2 between exhibitors and international buyers – nearly double the number of meetings in 2022.  There are also smaller events, such as weddings and other celebrations, which all benefit the success of local event planners.  

Understanding Event Liability Insurance: what’s covered?

Understanding what is included is a top priority when considering any insurance product. The risk assessment you do before any event will help you identify potential hazards you can mitigate. However, some risks are unavoidable. Event Liability Insurance includes the following coverage: 

1. Property damage: Any accidental damage to a venue or other people's property is covered. Whether this is a stage decoration collapsing and damaging a wall or a fire spreading from your event to an adjoining property. Events Insurance would cover associated costs. 

2. Bodily injury: From guests slipping on wet surfaces and injuring themselves to head injuries from thrown objects — you can't predict or prevent all injuries. However, Event Liability coverage extends to medical expenses and legal costs if you are held responsible for any injuries at your event.

In addition to postponements and cancellations, issues related to food and beverages, security and alcohol-related liabilities are not covered. If you contract a security provider for your event, you should ensure they have their own Liability Insurance.

It isn't only the type of incidents covered that make Event Insurance essential; you can get cover for a one-day event, a once-off multi-day event, and for business owners — ongoing events on your property or establishment, thus giving you specialised protection only when needed.

Unpacking Public Liability Insurance: how it’s different

Public Liability Insurance shares some similarities with Event Liability Insurance. However, the two types of insurance also have differences. Public Liability Insurance is meant to safeguard your business from the risks associated with daily operations. It is also intended for businesses that regularly interact with the public, like customers or suppliers, on their premises or third-party premises. Coverage includes:

• Slips, trips, and falls: A loose tile, poorly placed cable or wet floors can easily cause injury to a customer or client. Public Liability Insurance can cover the medical costs if your business is liable.

• Property damage: This insurance protects you if your business activities accidentally cause damage to someone else's property, covering the cost of repairs or replacement. For example, if you owned a coffee shop and one of your servers accidentally spilt coffee on a customer’s laptop, your insurance would cover the cost of the repair or replacement. 

• Legal Expenses: Lawsuits are expensive. Public Liability Insurance can help cover court costs and legal defence fees if a claim is made against your business.

Key differences from Event Liability Insurance are:

• Focus: Public Liability is about everyday business risks primarily occurring on a business's premises or while working away from your property, whereas Event Liability is designed for the specific, often temporary risks associated with hosting an event at a specific location and for the duration of the event.

• Scope of time: Public Liability is usually an ongoing policy that is renewed annually, while Event Liability can be tailored for short-term or one-off events. A blanket policy for all annual events can be arranged for companies that specialise in hosting events. 

• Covered activities:Public Liability protects businesses during normal operations. Event Liability focuses on things like bodily injury and the unique liabilities of hosting gatherings.

Recap: key differences between Public Liability & Events Liability coverage

Public Liability Insurance is designed to protect businesses during their everyday operations. It covers risks associated with customer and supplier interactions on your premises and potential liabilities caused by your regular business activities. It is an ongoing annual policy, providing continuous coverage for your business.

Event Liability Insurance protects you from the specific risks of hosting an event. This includes things like damage to a hired venue or injuries to attendees. It offers more flexibility and can be tailored for a single event, a short-term gathering or even a recurring series of events.

Public Liability Insurance is essential if you own a business that interacts with customers or the public on a daily basis. However, if you're involved in planning or hosting events of any size, having Event Liability Insurance is needed to protect yourself and your business against risk. You should be aware that some activities hosted on your business premises could be considered events, such as a weekly karaoke or quiz night you host in your pub. If you’re unsure, speak to your Dialdirect Insurance consultant. 

Get a Dialdirect Insurance quote for Event Liability coverage

Prevent unexpected mishaps from disrupting your plans and leaving you out of pocket. Whether you're hosting a single event or multiple events throughout the year, protect yourself with the right insurance. Get a Dialdirect Insurance quote today.