Barbara Dunn speaks the truth about legal and contract issues

Wading through all the legal and contract requirements of meetings can be difficult, so it’s nice to have someone like Barbara Dunn, attorney and partner at Howe & Hutton, to guide a planner through the process. She’s developed a reputation in the industry as a lawyer who understands the business challenges facing planners. Take a look at some of her best advice.

1. Groups might want to consider purchasing event cancellation insurance for their meetings. Typically, the following are considered “covered events” under the policy: adverse weather conditions, non-appearance of a principal speaker or entertainer, terrorism (but only to the extent the event meets the policy’s parameters in terms of proximity and timing), labor disputes, airline cancellations due to adverse weather conditions or labor disputes, and floods.

2. Check the contract. Are there any provisions that would allow cancellation without a fee? If the answer is no, then shift to fee negotiation. Think of the cancellation fee as your maximum exposure. Your leverage for concessions is that you could walk away, but you probably won’t.

3. A “force majeure” provision needs to include a grocery list of contingencies. It also needs to set a standard of impact that is less than the usual “impossible” or “illegal,” which is the hardest, highest example to meet.

4. For food and beverage, consider guaranteeing a minimum amount of the total food and beverage revenue generated over the entire period. That gives you flexibility to add, change or cancel events so long as the total number meets the minimum amount. That way, if it doesn’t, you will only pay a fee based upon the difference between your guaranteed minimum amount and your actual revenue amount.

5. One of the most effective ways planners can manage risk is to shift the risk to vendors. If your organization needs a bus company to transport attendees at a conference, shift that risk to the bus company by asking the bus company to indemnify the organization in their contract.