There is RiskThe Biggest Thing Behind the Event’s Excitement
Have you ever heard the news about a concert stage collapsing due to strong winds, or event attendees falling because of scattered electrical cables?
For those of you who work in the events world, things like this are not just stories but real risks that can happen at any time.
For an Event Organizer (EO), a small incident can become a major disaster. Imagine if a guest is injured, property is damaged, or an artist is injured due to technical negligence. The client or participant could immediately file a lawsuit, potentially amounting to hundreds of millions to billions of rupiah in damages.
This is the reason why public liability insurance is not just a complement, but an absolute obligation for every event organizer, be it a concert, festival, seminar, exhibition, or corporate event.
As a licensed insurance broker with decades of experience, L&G Insurance Broker understands the complexities of risk in the world of events better than anyone else. Unlike agents who sell only one company’s products, brokers like L&G work on behalf of you, the client, not the insurance company. We help you choose the best policy, negotiate premiums, and ensure claims are paid out when an incident occurs.
👉 Free consultation with our team of experts via WhatsApp at 08118507773 or email to halo@lngrisk.co.id
Don’t let one incident ruin your reputation and business.
Why is the Event Organizer World High Risk?
Behind the grand stages and flashing lights, the world of event organizers holds many potential hazards. Every public event involves large numbers of people, heavy equipment, electricity, temporary structures, and expensive equipment. All of this creates the potential for damage or injury.
Some real examples of risks that often occur in events:
- The stage collapsed due to construction errors or extreme weather.
- Spectators slipped in the event area due to the slippery surface.
- Damage to third party property (e.g. guest cars or rental sound systems).
- An electrical short circuit caused a small fire.
- Injuries to crew or visitors due to negligence of the committee.
The problem is, many EOs still think “ah, it’s just a small event, it must be safe.”
However, lawsuits can still occur even at small-scale events.
In Indonesia, more and more corporate and government clients are requiring event organizers to have a Public Liability Insurance policy before agreeing to an event contract. This means this insurance has become a standard of professionalism.
What is Public Liability Insurance?
In simple terms, public liability insurance is financial protection that provides compensation for legal claims from third parties due to bodily injury, death, or property damage that occurs in the event area or as a result of activities you organize.
For example:
- A visitor slipped in the event area and suffered a broken bone.
- The stage pillar fell on the invited guest’s car.
- A small explosion in a generator caused property damage to the hotel where the event was taking place.
In such cases, third parties can sue the EO to pay compensation.
Well, this is the main function of a public liability policy: to cover the costs of compensation and legal fees arising from the claim.
What is covered by the Public Liability Policy?
Public liability policies typically cover the following:
- Bodily injury
For example, visitors fall or are hit by falling objects during the event. - Third party property damage
For example, a rented sound system or sponsor’s belongings are damaged due to the negligence of the EO team. - Legal costs
Including attorney and court fees in the event of a lawsuit. - Emergency medical expenses
Some policies also cover first aid costs for injured parties at the event location. - Installation and dismantling period
Protection remains in effect during the preparation, execution and dismantling of the event.
Why Are Event Organizers Vulnerable to Suing?
In the world of events, anyone can be a potential victim: attendees, artists, sponsors, vendors, and even the venue. And all of them can sue the main organizer, the event organizer.
Just one small incident, such as a banner falling or a water spill causing a visitor to slip, can escalate into a complex lawsuit.
In addition, cooperation contracts between EO and clients (companies, sponsors, or government agencies) are now increasingly stringent.
Most already include a clause that:
“Organizers are required to have an active public liability insurance policy with certain coverage limits.”
Without this policy, you could lose your contract before the event starts.
Real Case Examples
To give you an idea, here are some real cases that have occurred in the events industry:
Case 1: Outdoor Music Concert
During the concert, the stage collapsed due to strong winds. Several audience members were injured, and the band’s equipment was completely destroyed. The event organizer was sued for hundreds of millions of rupiah by sponsors and artists. Fortunately, they had a public liability policy that covered all compensation and legal costs.
Case 2: Exhibition in Mall
An unsecured electrical cable caused a visitor to trip and injure a knee. The client sued the event organizer for medical expenses and compensation. The insurance policy covered all costs without the event organizer having to dig out of their own funds.
Case 3: Culinary Festival
A small explosion occurred in a participant’s booth, causing minor injuries to two attendees. Although the event organizer wasn’t directly at fault, they still held themselves legally responsible as the event organizer. Fortunately, everything was covered by a public liability policy they purchased through a professional insurance broker.
Why Go Through a Broker, Instead of an Agent or Insurance Company Directly?
This is the most important part and is often misunderstood by many EOs.
Insurance agents work for insurance companies. They can only offer products from one company and don’t have the authority to fight for your claim.
Meanwhile, insurance brokers like L&G Insurance Broker work for you, not the insurance company. We have access to numerous insurance companies, allowing us to select the best policies with the most efficient premiums to meet your event needs.
More importantly, in the event of a claim, only the broker:
- Prepare claim reports professionally
- Coordinate directly with the insurance company
- Ensure that claim payments are truly disbursed according to your rights.
This is the most crucial difference that agents or direct purchasing cannot provide. A broker is your advocate in the world of insurance.
The Role of L&G Insurance Brokers in the Event Industry
When EO works with L&G Insurance Broker, the process is simple but professional:
- Event Risk Analysis
Our team reviews the event type, location, duration, number of attendees, and technical risks.
- Insurance Market Research
We look for the best policies from various well-known insurance companies in Indonesia and abroad.
- Premium Negotiation
We help you get the most competitive premiums with maximum protection benefits.
- Police Publications
All documents are explained transparently so you know exactly what is protected.
- 360° Claims Assistance
If an incident occurs, we help you from gathering evidence to disbursing claims — at no additional cost.
Factors that Determine the Premium Amount
Public liability premiums vary across events. Some of the main influencing factors include:
- Type of event (concert, seminar, festival, exhibition)
- Number of visitors
- Event duration
- Location and area
- Equipment used
- Previous claim history
Brokers like L&G will help you calculate premiums that balance costs and benefits, so there is no waste.
The Impact of Not Having Public Liability Insurance
Many EOs think “it’s not necessary” until a problem arises.
Here are some real impacts if you delay:
- Losing a major contract because a corporate or government client refused to cooperate without a policy.
- Huge financial losses due to having to bear the compensation yourself.
- Reputation ruined on social media and in public.
- Blacklisted by the venue or sponsor.
- Loss of EO business license in serious cases.
With premiums actually being relatively affordable, why take such a big risk?
Legal Aspects You Need to Know About EO
In Indonesian civil law, the organizer’s responsibility for public safety is regulated in Article 1365 of the Civil Code:
“Every unlawful act that causes loss to another person requires the person whose fault caused the loss to compensate for the loss.”
This means that even if you did it unintentionally, you can still be sued if you are deemed negligent.
And that is why public liability insurance policies exist to transfer the burden of legal risk to insurance companies.
Conclusion
Every event is a high-stakes moment. One small mistake can lead to significant lawsuits, lost clients, and a damaged reputation.
With public liability insurance, you not only protect your business but also build trust with your sponsors and the public. And remember, never purchase insurance directly from a company or through an agent. Only an insurance broker like L&G can guide you from policy selection to claim disbursement.
Want to know the best public liability policy for your event?
Contact us now for a FREE consultation:
📞 WhatsApp: 08118507773
📧 Email: halo@lngrisk.co.id
L&G Insurance Broker is your trusted partner for all your event risks. Because in the world of events, security is not an option, it’s a requirement.
