First, get risk savvy

INSURANCE: Covering events could save a company.

With incidents like the recent fire tragedy at the exhibition in Meerut fresh in their memory, event organizers are getting sensitised to the need to insure such events. Insurance industry officials, however, feel that such insurance should be made mandatory.

"Whenever the authorities sanction a proposal for an event, they should see that the event is insured," says A N Bhargav, deputy general manager, Oriental Insurance.

An event insurance policy is mostly a standard fire and special perils policy with three main covers attached "" fire and personal accident cover, public liability cover and purchase protection cover.

The fire and personal accident cover insures the space and the the structure created for the event. It can even be extended to cover earthquakes and terrorist attacks. The second part of the policy "" Public Liability Cover "" insures the visitors against death, disability and injury due to short circuits and stampede, and can be extended to include medical expenses. The purchase protection cover insures the goods and cash collections made against burglary or mishap.

Most policies have an optional cover against cancellation of events too. Explains Amol Phadnis, national manager underwriting, ICICI Lombard General Insurance Company: "This can cover perils such as cancellation of the event due to death of a performer in case of shows, while cricket matches can be insured against cancellation due to rain."

The premium of an event insurance policy depends on the time frame of the event (7-180 days), the type of structure created and the income levels of the visitors to the event. In most cases, it is 0.5 to 1.5 per cent of the market value of the exhibition.

But don't just opt for the cheapest policy, warns K Krishnamoorthy, head of underwriting and incharge of products at Bajaj Allianz General Insurance. Event insurance policies currently clock low sales "" ICICI Lombard and Bajaj sell eight-ten polices a month across India. That number is bound to go up as events, and the associated risks, go up.