Sunday, November 10, 2013

A Liability Concern

One current event that seems necessary to discuss in event management is the foreseeable risk involved in hiring subcontractors and vendors who might in turn create liabilities for the event management company. For example, to organize a customer’s dream wedding, most event planning companies have to rely on different vendors such as catering companies, performers, musicians, decorators and valet parking attendants among others to create that desired event.  This event could be ruined if one of these sub-contractors does not perform accordingly as stated in the contract or if the sub-contractors show any type of negligence. Identifying who is responsible might seem obvious on the surface, but it can become complex because some of the responsibilities overlap, certain responsibilities are delegated by the events management company to the sub-contractors and at many times, there are multiple contractors involved.  While there are many variables that are in the control of the events management company and it’s sub-contractors, there are many factors that are out of their control such as natural disasters, death of the customers and other crisis events that often go unforeseen.  As a result, events management companies place themselves in positions of great risk and legal liability that requires the field to create and come up with some sort of legal protections. One such protection is liabilitycoverage, which many companies simply choose to ignore because on the surface their services might seem to pose a limited risk.

There are several current examples of liability issues within the field of events management. For example, AEGLive, the management company for Michael Jackson, faced a very complex situation when Michael Jackson passed away.  The company faced a heavy lawsuit due to the involvement in probate court where Michael’s mother was appointed executor of his estate.  She attempted to sue the events management company as part of the wrongful death suit, albeit she was unsuccessful.