Your event contract is set, signed, and you’re ready to work on the logistics. Then, something happens, something unforeseen. You have to cancel, the weather is bad, a strike. It all comes snowballing down on you and you’re wondering, what’s next, are we protected?
I live in Grand Rapids, Michigan. If you didn’t know we just got what some called the “Snowmageddon” of snow storms. It almost shut down the city – it was that much snow so quickly. The few days leading up to the storm I was on the phone nonstop with clients about the weather, their events and what we could do for them. It was simple, take care of the client first, always.
At this point we’re pulling contracts to see what obligations each party has and getting down to the details of what was written. But, if by chance you’re working with a hotel that operates solely based of the contracted obligation, you could be out of luck and it could cost your company and event money.
Here are a few simple clauses that could help you out in times of need –
Force Majeure or also known as the Impossibility Clause
A clause that relates to the example above, the Force Majeure Clause will either release or suspend obligations of one or both parties from certain events occurring outside the realm of the control of one or both parties. Some examples are Acts of God (including fire, flood, earthquake, storm, hurricane or other natural disaster), war, invasion, act of foreign enemies, hostilities (regardless of whether war is declared), civil war, rebellion, revolution, insurrection, terrorist activities, nationalization, government sanction, blockage, embargo, labor dispute, strike, lockout or interruption or failure of electricity or telephone service. You have to list what you want covered in the clause otherwise it could be useless.
Rebooking Cancellation Clause
This clause can be a tough one to get into a hotel contract because it allows the client to rebook a cancelled event inside of a certain time frame. The cancellation fees paid would be applied to the rebooked event as a form of deposit. If by chance you have to cancel your event, at least this clause will allow you to get something out of the fees paid instead of just paying them to the venue.
Indemnification
This clause is designed to protect one party from not being liable for another parties part’s in wrong doing. The clause will protect employees and other designated parties which you state. You may also see this clause titled as a Hold Harmless clause, which performs the same thing. The Indemnification clause usually protects one party from the other but it can be written mutually to protect and hold harmless both parties. The clause protects client or venues from damages, loses, claims, fines, etc… due to acts, errors or misconduct from the employees or designated parties. Make sure you are covered and not just covering the other party because this clause could save you money by minimizing your risk should something arise.
These clauses are three of many that are associated with the event contract between the venue and the client. They can help you in times of need in which circumstances arise which you didn’t expect. Some venues are willing to work with you on allowing certain clauses in the contract and some aren’t.
Contract requirements can vary state to state with clauses and how you can be protected in the event of a dispute and how it is handled. Please consult a lawyer first before signing any contracts for your events, especially events with a lot of liability.
Remember read your contracts carefully and make sure you’re protected from all angles.
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Adam Schomaker – Hotels (Services, Events, Sales)
Adam Schomaker has been in the sales and service driven industry since he was 14 years old. Working for small businesses to large companies like Best buy, he has been able to grow and mold customer service to a tee. He started his career at culinary school in Grand Rapids, Michigan and transitioned into hotels and events while attending Northwood University. Adam has vast experience in the events industry from the hoteliers point of view while working with large hotel corporations such as Hilton, Holiday Inn and Marriott. He has a love for making sure the customer is always successful in their endeavor and taken care of. Adam recently started a consulting venture called, Up ‘Adam Solutions, which provides Sales Development, Training, Communication Support, Online Content Management and more. He looks to help make the small fish in the big pond stand out on a small businesses budget.
To learn more about Adam Schomaker and his contribution to the Liz King Events Blog, view his profile.
To see more of Adam, check out his series of posts.
The opinions and viewpoint expressed in this blog represent those of the author and do not necessarily represent those of Liz King Events.
Photo by NobMouse
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