Paul Cook takes a look at some emerging concerns to consider when insuring your event success

reating and designing events is exciting . Ideas are tossed around , debates rage over what is or isn ’ t likely to work , and actions are delegated . That same energy and diligence need to be present when reviewing the risks of your event .

As expectations from attendees and stakeholders become more complex , examining risk probability and insurance is imperative .

The insurance industry can be confusing , but the good news is that the usual issues of managing money , people , and equipment

“ Covid-19 , the wars in Ukraine and the Middle East , and the increased regulation following Brexit have impacted insurers . This and the changing global climate have significantly affected insurance pricing and the extent of coverage available . The market generally excludes Covid risks , apart from one insurer who charges a high price . Terrorism , Civil Commotion , and weather-related insurance are generally available .

Terry Waller , managing director , Arc International

“ Generative AI introduces businesses with new potential risks , which could include copyright or trademark infringement , discrimination or defamation ”

remain paramount . You can cover some of the key risks through cancellation insurance , liability , and equipment insurance .

However , you should urgently review two key areas : the impact of climate change and of AI .

Some insurance companies provide coverage for adverse weather conditions . However , it ’ s important to consider not just the likelihood of bad weather during the event , but also accessibility of the venue in such conditions .

Reviewing information on the best times to visit a destination and keeping abreast of trends can help assess the risk of climate change .

Sustainability consultant , Shawna McKinley , has mapped the impact of catastrophic weather on events in Canada . She discovered that in 2023 , at least 72 Canadian events were affected by extreme weather , lacking insurance and contract protections . This led to financial losses and stress . She hopes to inspire other event professionals to do the same in other parts of the world .

Generative AI introduces companies and their business partners with new potential risks . These could include copyright and trademark infringement , discrimination , defamation and the use of inaccurate data in AI learning algorithms .

Paul Cook

Lawsuits Unfortunately , AI-related lawsuits are already taking place . In December 2023 , the New York Times filed a lawsuit against OpenAI and Microsoft , alleging copyright infringement in connection with OpenAI ’ s ChatGPT technology .

The next wave will likely see a different set of risks . Cyber criminals ’ use of generative AI is expected to lead to a significant increase in sophisticated attacks .

Beyond these issues , there are AI challenges in how you run your business , which could lead to lawsuits and costly reimbursements . For example , if you incorporate AI in your business processes or use it to evaluate job applicants , you might encounter complaints from unsuccessful candidates or clients if the AI is biased due to the data it was trained on .

Insurers may cover AI-related risks in existing policies , add exclusions , or do nothing and leave confusion on the table .

To overcome any confusion about AI , climate change , or other risks , it ’ s always best to communicate in detail with your insurance providers to eliminate any misunderstandings . Remember to review and revise your contract conditions . You can be sure they will need updating . CN