“Insurance? Neither the client nor the venue demanded it, so why bother?”
This line often echoes across event planning boardrooms and production houses. But earlier this year, a leading agency learned just how costly that mindset can be — and how crucial event insurance really is.
The Incident
During a large-scale brand event for a prominent D2C multinational company, an unexpected mishap occurred. As the event wrapped up and dismantling was underway, a large front-facing glass window at the venue—clearly visible to the public—was accidentally damaged.
As per the venue’s terms and conditions, all required repairs had to be carried out by their own pre-approved vendor based abroad. The costs quickly added up, ultimately exceeding ₹15 lakhs. Although the damage was caused by a third-party vendor hired by the agency, both the venue and the client held the agency responsible — after all, the agency was the official contractor and the primary point of contact for the event.
The Financial Fallout — and the Lifesaver
Fortunately, the agency had secured comprehensive event insurance through PROADVICE Wealth IMF. Once the claim was intimated, the agency was required to submit repair expense estimates, which were cross-validated by the insurance company’s surveyor. After the repairs were completed, approximately 95% of the claim was reimbursed to the agency, and they only had to bear the remaining 5%. What could have been a crippling financial hit turned into a manageable situation, thanks to foresight and planning.
What We Can Learn
This case brings to light several important takeaways for professionals across the event and experiential industry:
1. The Agency Is Always Accountable
Even if a task is subcontracted, the event agency remains contractually and financially liable. The client and venue don’t concern themselves with internal delegations — their agreement is with the agency.
(Should vendors then be required to insure their scope of work independently? It’s worth considering.)
2. Coverage Must Span Beyond the Event Day
Injuries or damages can occur anytime during the lifecycle of an event — from the first day of set-up to the final day of dismantling. Insurance must reflect this full timeline, not just the event duration itself.
3. It’s a Small Cost for Huge Protection
Event insurance typically costs 0.75% to 1% of the total event budget. In this case, that small investment saved the agency from a ₹15 lakh liability — proving just how valuable coverage can be.
Final Thought
The industry often overlooks insurance as an ‘optional’ line item. But this incident shows that while insurance might not be mandatory, it’s absolutely essential.
