Public Liability Insurance Information Sheet
For Event Managers, bands, and performers
What is Public Liability Insurance?
Public liability insurance is a product that is bought by organizations,companies and individuals to cover the risk of a common law claim for damages by someone who is injured through their activities. It covers injury claims arising from accidents or other incidents which might occur at meetings, events or simply on your premises where you have been deemed to have been negligent. Negligence is simply doing something without a reasonable amount of care, or failing to do something which might reasonably have been done to prevent the incident. Most insurance coverage specifically excludes certain claims or incidents, and cover for organisations does not normally cover the actions of individuals or volunteers, just members and employees. Insurance is not offered to unincorporated community groups.
Why do we need it?
Some funding bodies, many venues and government regulation require that you have cover in place before undertaking any activities. Without any form of cover, organizations are liable for any injury or negligence claims arising from their activities. This can result in massive payouts to those suffering as a result of the incident, which can bankrupt both the organization and individuals within it, even if they are not actually found to be at fault.
Why has it become so expensive and difficult to get?
Even without the events of September 11, 2001 and the collapse of the underwriter HIH Insurance,the public liability industry has been making significant losses in Australia for several years. Increased premiums are an obvious means of increasing profitability. It has become extremely difficult for the arts and cultural industry to obtain quotes or proposed policies due to increased pressure on insurance companies to understand the activities they are insuring. You need to provide information that clearly explains what your activities are.
What can we do to minimize costs?
Being insured does not replace or defer your responsibility to others for possible consequences of your activities. The best way to keep your costs down is to demonstrate that you aware of the risks involved in your activities, and that you have a sensible approach to managing those risks. A formal risk assessment and management plan can help, particularly if it details how your staff/volunteers will prevent accidents and respond to incidents. Be specific about your activities. The word 'workshop ' might mean something to you, but your insurer is likely to envisage a mechanics workshop rather than a group of people discussing ideas or working with non-toxic art materials. Ensure that anyone you work with as a project partner or contractor provides their own insurance.
How can unincorporated community groups get cover?
Unless you become a legal entity, such as an incorporated association, you cannot get coverage for your activities. Even if you hire an artist or have a partner organization with their own cover, members of your group may still be personally liable for any claims arising from the activity. You may be able to operate under the authority of your local council, if they have the appropriate insurance cover, and a mechanism is provided in the councils policies and management plans. This is achieved by becoming a sub-committee of council undersection 355 of the Local Government Act, with reporting lines to Council. Contact the Cultural Officer, Youth Development Officer or similar person in your local council for more information.
Public Liability Insurance Solutions
For Events:
Community Care Underwriting Agencywww.community-care.com.au or Email Phil Turner phil.turner@community-care.com.au or Call 1800 023 456 Community Care was formed in December 2002 as a joint venture between Alliance Australia, NRMA Insurance, and QBE in response to the need for public liability insurance for not for profit organisations, primarily for activities including community events.
For Bands and performers:
Duck For Coverwww.duckforcover.com.au An Association set-up 5 years ago with the sole purpose of obtaining economical Public Liability Insurance for Individual Performers by using Bulk Buying. More information including the Application Form and Payment Methods are all on their web-site.
For more public liability, and risk management information, and resources check out:
www.ourcommunity.com.au for free helpsheets on risk management and tips for buying better insurance www.niba.com.au (NIBA) to do a search on brokers in your area
Also see page 8 of Indent's "Young Person's Guide to the Gig Galaxy" for more information on how to manager Public Liability Insurance for Indent funded events.
