Planning for the Unexpected

Our industry is affected by so many external factors, and these past few years really are a testament to that sensitivity.  From hurricanes in the southern United States, to volcanic ash over Europe, to unique state-sponsored immigration reform, all the way to record flooding in Tennessee.  There are a number of strategies that event planners can take to prepare for and/or respond to these events.  A common strategy to plan for the unexpected is to craft a comprehensive Force Majeure clause that protects your client’s interests.

Patricia Ekers

Force Majeure, literally translated, means “superior force.”  Traditionally Force Majeure clauses were included in contracts to remove liability for natural and unavoidable catastrophes that change the anticipated course of events and prevent contract parties from performing their responsibilities.  Over the years these clauses have become longer and longer to specifically include many more events.  After the tragic events of September 11, 2001, many organizations updated their clauses to include terrorist attacks and delays in transportation facilities. Many organizations also responded to SARS and Swine Flu to include pandemic/epidemic illnesses and outbreaks as an excuse for non or partial performance.

Our goal as event planners is to create a comprehensive clause while at the same time getting our hotel or other venue to accept the clause.  A strategy might be to closely consider your group’s members, exhibitors, event objectives and important logistics.  Pick your battles based on these certain classifications.  While you may not get all of your requests granted in negotiations, you may be successful in what is most important.  For example, if you have a group of international engineers coming to the United States, you may consider putting in protective language that allows you to cancel if 40% or more of the engineers are unable to obtain proper travel visas.  If you have a large group of attendees coming from a coastal area during hurricane season, it would be a good strategy to write in a clause that allows you to cancel if your attendees are prevented from attending due to hurricanes or flooding in their home state (even though the hurricane or flood does not affect your venue).  Likewise, if you have a large group of attendees made up of a certain nationality, you could write in language that says the group could cancel if state legislation where your hotel is located could adversely affect the group or its meeting objectives.  Again, these are departures from the standard Force Majeure clause so they may require some give/take to get them included.

What has your organization done to prepare for and/or respond to current events?  What would you have done differently with the knowledge you have gained the past few years?