Is your business liable for the events you host?

Corporate events are excellent for team morale. They give your people the chance to let their hair down, speak to people they might not usually encounter across the business and feel more connected to the wider company culture. When you've done all the hard work, chosen the venue, sorted the drinks and booked the DJ, it can be easy to think that your work is done. But there's still more to consider.

While your venue will assume a level of responsibility, as the hosting business you will also need to factor in your own liability. 

What are the most common claims when hosting business events? 

When bringing together large groups of people, this naturally increases the likelihood of something going wrong. Some of the most common claims seen at corporate events include:

Slips, trips, and falls

When you're bringing equipment to a venue, it can be easy to overlook loose cables or for hazards to naturally occur as the day goes on. This means that guests can trip, slip on spilled drinks or even fall on uneven flooring within the venue.

Third-party property damage

If your guests are partaking in an activity and accidentally cause damage to the venue, hired equipment or other guests' personal belongings, this could mean that your business is held liable.

Vehicle damage

When arranging transport for guests, such as hired coaches or minibuses, a road traffic accident may result in a claim.

Food poisoning or catering-related incidents

If illness is traced back to food or drink served at your event, who is liable isn't always clear cut. However, if it's determined to be caused by improper handling by the host, this could result in a claim made directly against your business. [1]

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While you may find solace in your venue's insurance, this unfortunately doesn't always tell the full story. When you host a business event, your responsibility extends to the people you invite, the activities you organise, the equipment you bring on site and the way the event is run.

You might be surprised to learn that, in many cases, these risks sit with the organiser rather than the venue. That means if something goes wrong, your business may be expected to respond, even when the venue itself is fully insured. [2]

So, what can you do to mitigate this risk? It's worth starting out by carrying out a thorough risk assessment. This can help you spot hazards in advance and put sensible precautions in place to reduce the likelihood of a claim. Your assessment should take the event and location into consideration, as well as how many people are attending and the activities involved. On top of this, it's also important to understand where your responsibilities begin and end.

Hosting a corporate event creates a legal duty of care

When hosting a corporate event, a business takes on a legal duty of care. This means that if someone is injured or suffers harm and you can't show that reasonable precautions were in place, your business could be held liable.

Using third party suppliers doesn't remove your obligation either. While caterers, entertainers or hire companies will have their own insurance, you may still be held accountable if you didn't take appropriate precautions and their actions affect guests or employees.

It's also worth remembering that employers are responsible for staff behaviour and safety, particularly in scenarios where alcohol is involved.

What you can do to reduce risk

As well as carrying out a risk assessment, it's important to review contracts with venues and suppliers well in advance of the event. Understanding who is responsible for what, including insurance arrangements, emergency procedures and liability, helps avoid misunderstandings and potential gaps in cover.

Early planning allows time to coordinate responsibilities and ensure the right insurance is in place, helping to set clear expectations for everyone involved and reducing the chance of risky last minute decisions.

How Edwards Insurance Brokers can help

Planning a corporate event can come with risks, but the right business insurance can help keep your business and people safe. By arranging cover that reflects how and where your event takes place, you can focus on bringing people together. Contact us today on 01564 730 900 or at enquiries@edwardsinsurance.co.uk to find out more.

[1] https://theinsurancexperts.com/2024/03/27/most-common-business-insurance-claims
[2] https://www.hse.gov.uk/event-safety/managing-an-event.htm 
https://www.gosport.gov.uk/article/1553/Event-risk-assessment-guidance 
https://www.abi.org.uk/globalassets/sitecore/files/documents/publications/public/migrated/liability/abi-guide-to-planning-an-event.pdf