Revenue / 01.18.23
Venues Face Insurance Challenges in 2023
Venues' insurance costs will likely increase in 2023, with insurance brokerage HUB International forecasting general liability rates rising as much as 10% because "known risks have gotten worse," according to the company's 2023 Sports and Entertainment Outlook. Fewer carriers will offer coverage while underwriters will carefully audit policyholders' security and risk management procedures. Not only have mass shooting events increased, but many states, particularly in the South and Midwest, have eased restrictions on carrying of firearms. There is lingering uncertainty about publicly-owned venues' ability to administer gun-free policies in such states, particularly where litigation has not yet resolved the issue. Crowd-surge events also compound these challenges, and concerned underwriters are demanding more assurances from venues on their security protocols and seeking firm staffing numbers. "Today there's a thorough review for active shooter protocol, site plans, ingress and egress, how and how many security is deployed," said HUB International's Cameron Smith. "Carriers also are requiring the security vendor carry insurance and the right amount of insurance. A decade ago, they'd just hope for the best."
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Tags: Security , Revenue