Introduction
Special events become complex when the number of stakeholders attending such meetings increases. In addition, the total number of attendance is in direct relation to the level of complexity and preparedness required of event organizers. From the case study, Doug’s firm is in charge of running the launch of a new chocolate brand named “bubbles”, and needs professional advice on the legal framework of an upcoming event. According to David (2004), it is undeniable that despite excellent and objective event planning and management, certain things can still go wrong. Despite the level of professionalism employed by an event planning director like Doug in designing all the activities of a special event, certain factors will still be out of the management’s control. In conventional situations, such inevitable factors may include accidents affecting audiences, breakage and damage of equipment at the scene and even theft of movable property. David (2004) agrees that whenever such unexpected but inevitable circumstances arise; the person in charge of running the event may be severally liable for the loss . Therefore, definite legal precautions must be made prior to staging a main event with sizable attendance like the one of “bubbles” chocolate brand.
Sometimes, before engaging in the actual process of event planning, it would be wise for event planners to look at past events, which have been held successfully. For instance, in this case, Doug may look at successfully staged events such as the 2012 London Olympics games. This global event proved to be a memorable experience and this was because of comprehensive prior planning. The London Organizing Committee of the Olympic and Paralympic games has received widespread applause for its great work. Doug should make a point of studying the event planning technique that the committee utilized so that he can deduce crucial points or tricks from it.
Potential Stakeholders
Based on the description of the event’s venue and timing, it is easy to predict potential attendants. Doug expects 4000 people to attend the event hosted at a local shopping center. With respect to the mentioned venue, there is high probability that one group of stakeholders will be the business owners within that shopping center. According to Luck and Tomas (2013), most business owners would be interested in getting first hand information regarding the new bran of chocolate . The event will serve as a source of detailed information about the “bubbles” chocolate brand to business owners, who could be either wholesalers or even retailers. Apart from the business people, another group of potential stakeholders are the local public. Actually, the public will make a substantial portion of all expected attendants. As consumers, members of the public will be interested in gaining knowledge on one of the new products in the market.
Moreover, performing artists like comedians and musicians features as another group of stakeholders for Doug’s event. Allegedly, Doug is planning of inviting a famous celebrity to headline the special event. This means that members of the entertainment industry will be present at the venue. According to Luck and Tomas (2013), the media may be interested in covering this commercial event, thus members of the forth estate features as an additional group of stakeholders. As acknowledged above, presence of all these stakeholders, especially with all attendance expected to exceed 4000 people, invites certain risks. For example, one member of the public may get injured after falling as a result of being tripped by a connection cable used in setting up audio equipment. According to Christoph (2008), Doug may be held responsible for the unfortunate accident, unless he had taken remedial legal precaution. Therefore, those risks ought to be specified and definite legal steps taken as a means of avoiding any potential legal liability during and after the event.
Potential Risks
At this juncture, we will evaluate potential legal risks associated with the “bubbles” brand event. Firstly, hosting an event with approximately 4000 attendants requires acquisition of appropriate licenses from local authorities. Children may make a significant part of audience in Doug’s event. In this case, Doug will have to obtain relevant approvals on standards relating to working with children. Rutherford (2009) says that apart from relevant licenses, successful event planning also needs close consideration to environmental regulations . Based on the case study, Doug is planning on distributing free samples of the chocolate products to audiences. In addition, presence of a performing artist means there will be substantial use of entertainment equipment. In the first case, packaging materials resulting from products distributed to attendants may cause environmental pollution in form of littering. On the other hand, production of excessive sound by audio equipment may amount to noise pollution. According to Allen and Glenn (2012), both potential risks will constitute violation of existing environmental laws. Finally, risk may result from failure to pay event planning staff and any other participating stakeholder who deserves a piece of the financial pie. In this case, suitable contractual agreements should be signed by involved parties in order to avoid unforeseeable legal liabilities.
Potential Legal Liabilities
One potential liability involves the aspect of attendants’ and stakeholders’ health and safety. Legally, an event organizer is expected to ensure presence of enough safety standards within an event’s venue. Once 4000 attendants have entered the event’s venue, it will be hard to monitor and control people’s movement. According to Walters and Rashid (2013), crowd control will prove almost impossible, especially when children are present. In case an accident or injury occurs within the venue, Doug may find himself being held responsible . Lombardi (2006) says that responsibility and liability in such unfortunate incidents manifest in terms of dereliction or negligence of duty by a responsible party . In most cases, accidents like fire outbreaks cause massive loss of lives and property . Apart from accidents, electronic equipments within the venue may be stolen by ill-intentioned attendants. For example, a $5,000 video camera, which Doug had hired for video coverage, may get lost without recovery. In such a case, Doug will be liable for the loss, and may be forced to reimburse the owner of monetary value equivalent to the price of the lost property. According to Joe and Goldblatt (2010), this means that Doug will have to take necessary legal precautions that will limit his liability in case of such accidents related to health and safety within the shopping center venue.
Apart from health and safety, Doug may be financially liable if he fails to fulfill all financial obligations associated with the event. As a result of unforeseeable circumstances, the invited performing artist may fail to attend the event. The celebrity may fall sick on the special day, thus failing to turn up for the event. According to Tarlow and Peter (2002), non appearance of a celebrity will invariably restrict the number of attendants, and subsequently affect success of the event . In addition, weather can become unfavorable for the event. The shopping center venue is probably an outdoor place. In case of extreme rains, the event organizer will be forced to relocate the event to an indoor venue. Undeniably, relocating to an indoor venue or hiring of tents to shelter 4000 people will lead to increase in financial cost of the event. In extreme situations, weather can become considerable extreme and unfavorable that Doug may be forced to cancel the event. Such acts of cancelling, interrupting or abandoning an event as a result of factors beyond the organizer’s control invites subsequent financial costs.
Injury acquired by attendant(s) invites financial liability in terms of compensation. In case a child running across the venue’s alley trips over a connection cable and breaks his or her hand, Doug will be conventionally liable, and will have to pay for the victim’s medical bill. Judy (2013) says that in case of property theft, investigation may ascertain that the loss resulted from laxity and negligence of duty by members of the security team working for Doug . In this case, the event’s director will be required to compensate for the loss. With respect to interruption, cancellation or abandonment of the event, Doug will still have to honor all monetary compensation intended for the staff and other stakeholders working at the venue. For example, an invited artist may fail to turn up despite the fact that substantial money was used in hiring audio equipment for his or her performance. Paul and Nicole (2012), says that despite the artist’s failure, Doug will still have to pay for the equipment’s hiring fee. This means that Doug will be severally liable for financial obligations pertaining to the event. Such obligations will have to be honored irrespective of whether the event succeeds or fails.
Legal Precautions: Insurance Policies
Event Insurance Policy
In order to avoid liability for specific risks like health and safety of attendants, Doug should arrange for a reliable event insurance policy. According to Maxwell (2010), insurance companies are aware of the fact that accidents that could lead to injury or even loss of lives in an event are beyond a director’s control. Consequently, these insurance companies provide cover for one-off events like the one for “bubbles” chocolate brand. In case of any accident or property loss, event insurance policy discontinues an organizer’s liability . In the absence of an event insurance policy, Doug will be legally liable for injury or theft occurring within the event’s venue. Maxwell (2010) says that however, the insurance policy in subject will cover for Doug’s liability by compensating injured victims and covering for monetary obligations resulting from property loss.
Interruption Policy
Event insurance policy will not cover for financial liabilities resulting from anything else other than health and safety within the venue. According to Clarke (2013), cancellation of an event will result in financial liabilities outside the coverage of event insurance policy. Fortunately, specific policies are available for specific causes like event cancellation or interruption by any unforeseeable cause . With respect to the “bubbles” chocolate launch, Doug will be legally liable for all obligations resulting from event cancellation. However, with acquisition of a cancelation insurance policy, the director will be covered for liabilities arising from cancelation, interruption or postponement of the event. However, the insurance company will have to ascertain that the underlying liability was caused by circumstances beyond the control of event organizers.
Conclusion
In conclusion, it is undeniable that successful event organization needs objective pre-planning. Such pre-planning should involve quantifying the breadth and depth of potential risks that may emerge. Risks can be identified properly by evaluating the role played by all stakeholders expected within an event. Once the risks have been quantified and defined, event organizers will have to acknowledge subsequent legal liabilities. Objective acknowledgement of legal liabilities ensures adoption of appropriate precautions. This means that, event organizers like Doug should adopt appropriate insurance policies for special events.
References
Allen, J. & Glenn, B. (2012). Events Management: A Practical Approach. Los Angeles: Routledge.
Christoph, L. (2008). Legal Aspects of Marketing and Event Management. Denver: GRIN Verlag Publishing.
Clarke, M. A. (2013). Law of Liability Insurance. New York: CRC Press.
David, S. (2004). The Special Events Advisor: A Business and Legal Guide for Event Professionals. Harrisburg: John Wiley & Sons.
Joe, G. & Goldblatt, L. (2010). Special Events: A New Generation and the Next Frontier. Harrisburg: John Wiley & Sons.
Judy, A. (2013). Event Planning Ethics and Etiquette: A Principled Approach to the Business of Special Event Management. Harrisburg: John Wiley & Sons.
Lombardi, J. (2006). Valuation of Life Insurances Liabilities: Event Contracts and Insurance Policies. Vancouver: ACTEX Publications.
Luck, M. & Tomas, P. (2013). Events, Society and Sustainability: Critical and Contemporary Approaches. London: Oxford University Press.
Maxwell, S. (2010). The Insurance of Commercial Risks: Law and Practice. New York: Cengage Learning.
Paul, K. & Nicole, F. (2012). Events Management: An International Approach. New York: SAGE Publishing.
Peter, C. (2002). Responsibility in Law and Morality. Cardiff: Hart Publishing.
Rutherford, S. J. (2009). Risk Management for Meetings and Events. Indianapolis: Indiana University Press.
Tarlow, E. & Peter, T. (2002). Event Risk Management and Safety. London: Oxford University Press.
Thomas, S. (2011). Legal Liabilities in Safety and Loss Prevention. New York: Jones & Bartlett Learning.
Walters, P. & Rashid, T. (2013). Events Management: Principles and Practices. New York: SAGE Publishing.
