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