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What sum insured is needed for an event: the minimums set by Latvian law
If you are planning a concert, festival, sporting competition, fair or any other public event in Latvia, civil liability insurance is not a matter of choice - it is a legal requirement. Moreover, the minimum sum insured is not set by the organizer: it is fixed by Cabinet of Ministers Regulation No. 298 of 8 May 2007 on compulsory civil liability insurance for public event organizers. Here is what sums the policy must provide, when to arrange it and what else an organizer needs to know.
When is insurance mandatory?
The Law on the Safety of Public Entertainment and Festivity Events defines a public event as any festive, commemorative, entertainment, sports or leisure event that is open to the public and held in a public place, regardless of who owns the venue. Every organizer of such an event must conclude a civil liability insurance contract so that losses caused to third parties are compensated.
The law does not apply to events held by religious organizations on their own premises, to meetings, processions and pickets, or to funeral ceremonies. The only exemption from the insurance duty applies when the sole organizer is a state or municipal institution - in that case it compensates third-party losses itself. Importantly, insurance is mandatory even when no municipal permit is required, for example for sports events at sports facilities or events held indoors.
What is the minimum sum insured?
The minimum coverage amount depends on the planned total number of visitors and participants. If pyrotechnics or other sources of increased danger are planned, the minimum sum is twice as high.
| Planned number of visitors and participants | Minimum coverage amount | With pyrotechnics or sources of increased danger |
|---|---|---|
| Up to 100 people | EUR 2,845 | EUR 5,690 |
| 101 to 1,000 people | EUR 10,670 | EUR 21,340 |
| More than 1,000 people | EUR 14,230 | EUR 28,460 |
The sums apply per claim and for the whole insurance period combined. If the organizer concludes one contract covering several events, the total minimum coverage amount under the contract is EUR 42,690. An important distinction: the figures in the table are the coverage amounts required by law, not the price of the policy - the premium is set by the insurer based on the risks of the specific event.
What does the sum cover?
Compulsory insurance protects third parties - event visitors who are not responsible for organizing it. The insurer covers:
- medical treatment costs, including rehabilitation and prosthetics;
- lost income during temporary incapacity for work;
- compensation for permanent loss of working capacity or death, including losses of dependants and funeral expenses;
- damage to or destruction of third parties' property.
Keep in mind that the sums set by law are only a minimum. Losses at a large event can turn out to be considerably higher, so organizers often choose a higher liability limit than the law requires - especially where stages, large amounts of equipment or big crowds are involved.
Deadlines: when to arrange the policy?
- the application to the municipality must be submitted no later than 15 days before the planned event day, and the municipality reviews it within 10 working days;
- if the event requires a permit, the insurance contract must be concluded before the permit is issued; if no permit is needed - before the event takes place;
- copies of the documents confirming insurance must be submitted to the municipality no later than two working days before the event day. If they are not submitted, the municipality does not issue the permit.
Breaching the rules on organizing public events also carries administrative liability: a fine of up to 80 fine units for a natural person and up to 640 units for a legal person.
What else do event organizers insure?
Compulsory civil liability cover is only the foundation. In practice, organizers additionally choose accident insurance for participants and staff, property and equipment insurance, and cover for event cancellation or postponement costs, which many insurers offer. You will find the full range of solutions in the business insurance section.
Every event carries different risks, so it pays to compare the terms of several insurers. Read more about the cover and how to apply in the event organizer insurance section - Agento will compare offers from several insurers for your specific event free of charge, and the broker's service costs your company nothing.