Meetings & Conventions: Incentive News
INCENTIVE HOUSES REQUIRE MORE COVERAGE OF DMCS, OTHER SUPPLIERS
Insurance Needs Grow
Jonathan T. Howe, ESQ.
he amount of coverage incentive firms require of
destination management companies, special event firms and the
subcontractors those suppliers hire might soon jump from $1
million, the current industry standard, to $5 million.
Meanwhile, incentive firms and their clients are increasingly
asking to be named on their suppliers’ certificates of
Both these trends had begun before Sept. 11, said Jonathan T.
Howe, Esq., senior partner for Howe & Hutton Ltd. in Chicago.
Yet, he added, “There’s a much more heightened awareness of
insurance issues now.”
A number of incentive organizers on Howe’s client list now
require suppliers to have aggregate coverage of $5 million, he
Among incentive houses interviewed by M&C, Fenton, Mo.-based
Maritz Inc., one of the largest players in the United States, now
requires suppliers to list the firm and its clients on certificates
of insurance. (Another large in- centive company, USMotivation,
based in Atlanta, asks for such listings on a case-by-case basis,
according to a spokesperson.) And while not yet legally requiring
suppliers to have liability coverage of $5 million, Maritz more
strongly recommends it now than it did in the past.
Although Maritz insists that the changes, introduced over the
past year, are not of major substance, suppliers who work with the
incentive giant consider them to be significant. Some are concerned
that Maritz will require $5 million in coverage in the very near
While agreeing that higher coverage costs are necessary today,
Terry Epton, president of the Denver-based Association of
Destination Management Executives, is concerned that implementing
them will be especially tough on small, independently owned firms
and might put further financial strains on companies already
strapped. ADME currently is working with several insurance firms to
offer lower-cost policies through the association, Epton said.
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