Promoters [organizers] of events such as concerts and sport events need liability insurance against the risk of property damage and bodily injury to those attending. A pop concert, for example, can easily attract tens of thousands of people. There will be loudspeakers and other equipment that could fall onto people or cables they could trip over. The event may be in a remote place and be exposed to the elements. Such events often take place on farmland that must be restored to its previous state afterwards, with nothing left in the ground that could injure farm animals, for example. Potential liability claims can thus come from many quarters.
Promoters also stand to lose money if the event cannot take place for any reason, and event contingency insurance will indemnify loss of revenue if a fire destroys the theatre or stadium in which a concert or match is due to take place or if the public utilities supplying electricity or water break down. The non-appearance of a celebrity due to illness, accident or death can also be covered, for which there are four possible outcomes. The event may have to be cancelled; it may have to be terminated early, postponed or temporarily interrupted. The loss of revenue in all these cases is covered. Furthermore, a key figure in the event may not be able to appear because of some contingency not connected with his or her person, such as an airline strike. This, too, can be insured, as also the effect of adverse weather or an epidemic that causes the event to be cancelled.
Not only promoters need insurance for such events, but also the people they employ, such as stage hands, lighting and sound technicians. These people should purchase public liability, accident and equipment insurance, and as freelancers they usually contact one of the brokers specializing in event contingency insurance to obtain such policies.
The small number of German insurance companies writing the lines of business outlined above usually acquire it by means of specialized brokers, whose staff have a deep knowledge of the music, festival or sports scenes. They are usually given binding authority to underwrite the risks and actively promote the expansion of this market niche. This is necessary, because surprisingly there are many promoters, particularly of smaller events, who still underestimate the risks entailed in their activities and do not recognize the need for insurance.