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What does “Insurance” Really Mean When Planning Events?

When it comes to Risk Mitigation and choosing the right DMC partner, one of the most important services your DMC partner provides is insurance. Of course, this includes carrying sufficient levels of insurance in-house, and ensuring all suppliers have ample insurance as well. But equally important is the intangible insurance the DMC partner provides. This means having plans and procedures in place to protect our clients’ financial budget, protect the client from service failures in the eyes of the program participants, having the contacts in hand to work miracles when last minute changes occur on-site (for example, your CEO decides at 7 PM on Saturday he wants THIS in the morning meeting!), and having resources and solutions even when the on-site issues are not part of the DMC program scope. This level of support is literally priceless, and only comes from a DMC that has the plans, contacts, knowledge and most important, the CARE to be that solution.

There are a number of steps a well prepared DMC takes to mitigate exposure to risk through a variety of standards and processes:

  • Ensure all supplier-partners are rigorously vetted and subject to annual reviews to ensure they meet your high safety and service standards, have minimum levels of insurance and terms of business that are amenable to your clients.
  • Have a thorough Emergency Preparedness & Response Plan in place.
  • Carry above standard levels of General Liability Insurance (most DMC’s carry $1 Million, well-prepared ones carry at least $2-3), including errors and omissions and workers compensation insurance. Require that you are listed as Additionally Insured for the program.
  • But most important is the intangible that no money or insurance company can provide – the cell phone contact list! Your best partners have relationships throughout the destination built through years of partnerships and friendships. This is the value that a well-connected local partner provides that can’t be bought anywhere else. The stories of DMC partners saving the day by pulling an obscure contact out to solve an unanticipated event are numerous, and PRICELESS!

It is important to have a trusted partner who is well-equipped to alleviate the risks that may occur in a program.