Proceed, postpone or cancel?

Decisions need to be made about forthcoming events that are being organised, whether to continue as usual, postpone them until later in the year or cancel them entirely. We saw yesterday that Imex has cancelled their event in Frankfurt in May. So, with the spread of Coronavirus, how should you come to a decision how to proceed in the next few months?

The first consideration is to make an informed decision, based on facts. We work in a collaborative and supportive industry and everyone understands the value of the global events industry. The most important factor is making a choice that is best for the business and whether the company’s objectives can be met without the event or if there is reduced attendance. What is the event’s purpose and what are the alternatives? Once this decision has been made, then the legal and insurance factors come in to play, but these should not be the driving factor whether the event should go ahead.

Force Majeure

The question is whether damages have to be paid if the conference is cancelled. So, does Force Majeure apply? It does if the event is illegal, impossible or commercially impracticable to hold. A recent example is a law passed by the Swiss government prohibiting public events of more than 1,000 people which caused the cancellation of the Geneva Motor Show. Some other considerations are if the city/country is in a state of emergency, flights have been suspended or travel has been prohibited. Fear is not force majeure.

Cancellation or postponement

Establish the critical mass of attendance for the purpose of the event to be successful. If 10% of attendees cannot be there it probably won’t have a significant impact, but if 30% or more don’t attend then that’s a different situation. Set a date when the decision will be made whether to proceed or not, considering travel arrangements, event set up, suppliers etc and make a well-thought-out business decision.

Contracts

Check all contracts: venues, DMCs, a/v providers, caterers, other suppliers, as well as attendees, exhibitors and sponsors. Is there an event cancellation policy in place and what will this mean? Take advice about whether the force majeure provisions apply, your legal team can argue about cancellation and attrition fees. It’s in everyone’s interest to proceed with the event, so if numbers are reduced then speak to the venue about minimum attendee numbers, accommodation and the spend on food and beverage because it is in everyone’s interest to negotiate. If there’s a new agreement make sure you have an addendum signed by both parties. If additional hygiene practices are required, find out what the venue is going to put in place and get these agreed in writing.

Insurance

There are two factors here. Firstly, the event insurance, check your general liability insurance, which should cover you if an attendee becomes ill at an event and have a claim against your company. Does this specifically cover COVID-19? Some insurance companies excluded COVID-19 from their policies since January 2020 as it became more prevalent. Secondly, there is business travel insurance which may come into effect if a company imposes travel restrictions to their employees.

Crisis Management and Communication

There should already be a plan in place and even if it isn’t entirely appropriate to the current circumstances, then elements may help to manage the situation.

Communicate with the stakeholders separately and stick to the facts. Keep the message simple and clear. If you are proceeding, then tell people about the hygiene practices onsite and how the event will be managed. Update any statements as necessary before and during the event.

This article does not constitute legal advice and we advise organisers to take independent legal guidance which is appropriate to their circumstances. This article is not intended to be relied upon to make specific decisions.