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Predicting the future is like forecasting the weather. You think you know what’s going to happen — then it doesn’t.

There has been a great deal discussed in the past few years concerning the legal liability within the corporate meetings and events industry, usually in terms of a crisis or the likelihood of a worsening situation.

To what extent do corporate meeting and events need to prepare for potential legal issues when planning corporate gatherings? Despite risk-management practices that have reduced frivolous claims, corporate meeting planners continue to feel the effects of operating in a litigious society. That’s why it is vital that corporate planners learn to navigate the potential legal issues they may face.

This requires a proactive and systematic approach. Meeting planners should prioritize legal compliance, risk management and the protection of their and their stakeholders’ interests.

Corporate meeting planner Pat Schaumann, CMP, president of Schaumann Consulting Group, LLC, and HMCC and MMP Managing Director of MPI, works closely with fellow planners to understand the potential legal issues that can arise during the meeting planning and implementation process.

“Corporate meeting planners can encounter various legal issues when planning meetings and events. These issues can have significant consequences if not properly addressed.” Schaumann says.

Some of the biggest legal concerns that corporate meeting planners may face, along with examples of potential issues, include:

• Contractual disputes: A dispute arises with a venue or vendor over the terms and conditions of the contract, including the payment terms, performance obligations or cancellation policies.
• Liability and insurance: A participant is injured during an event, and the planner or the corporation at which they work may be held liable for inadequate safety measures. Insufficient insurance coverage could lead to financial strain.
• Intellectual property: Copyrighted material, such as images, music, videos or logos and trademarks that are used without authorization during a presentation or a corporate meeting may result in copyright infringement claims.
• Data privacy and security: When orchestrating corporate meetings or events, planners deal with a wealth of personal data information. Mishandling this attendee data or failing to comply with data protection laws can lead to significant fines and reputational damage.
• Accessibility compliance: Keeping accessibility at the forefront is key at any size meeting or event. Failing to provide reasonable accommodations for attendees with disabilities may lead to discrimination complaints under the Americans with Disabilities Act (ADA).
• Compliance with regulations and permits: Meeting planners could face issues if they host an event without the necessary permits or licenses. This can result in fines and legal action from local authorities.
• Force majeure and unexpected events: Understanding and including force majeure clauses in contracts with hotels, venues and vendors is vital to protect against legal implications that may result from natural disasters, pandemics or political unrest, all of which can disrupt planned events.
• Discrimination and harassment: Attendees or event staff may file claims of harassment or discrimination if these claims aren’t appropriately addressed.
• Improper licensing: In the areas of alcohol and food service, serving alcohol without proper licensing or responsibly handling alcohol-related incidents can result in legal issues.
• Sponsorship agreements: Breaches of contracts or disagreements with event sponsors can lead to legal disputes.
• Speaker agreements: Legal issues surrounding fees, content or contractual obligations may arise with keynote speakers.
• Employment and labor law: Labor disputes and wage-related issues may arise with event staff and independent contractors hired for a corporate event.

“To mitigate these potential legal challenges, corporate meeting planners should consult with legal counsel, carefully review contracts, obtain appropriate insurance coverage, stay informed about relevant laws and regulations and implement risk management strategies,” Schaumann says. “Being proactive and addressing these issues before they escalate is crucial for successful event planning and execution while minimizing legal risks.”

Be a Proactive Planner

Although the above list of potential legal issues that may arise during a corporate meeting or event may seem overwhelming, there are some simple steps that meeting planners can take to offset or avoid potential legal issues. These steps can not only protect the corporate planners, but also other entities involved in an event.

To offset or avoid potential legal issues when planning corporate meetings and events, Schaumann advises that corporate planners should take several proactive steps.

Some of these include:

• Consulting legal counsel: When planning an event or meeting, consult with an attorney who is experienced in corporate meetings and events as well as contract law. This legal expert can help planners navigate complex contracts, compliance issues and risk management strategies.
• Developing comprehensive contracts: It’s important to carefully review and negotiate contracts with venues, vendors, sponsors and speakers. Ensure that all terms and conditions are clear and protective of a company’s interests. And be sure to include force majeure clauses that address unforeseeable events.
• Including insurance coverage: Insurance coverage is a vital component of any meeting and event. This includes general liability insurance and event cancellation insurance. Be sure to verify that the coverage adequately protects against potential liabilities and disruptions.
• Ensuring data privacy compliance: Make sure data privacy regulations are being followed when handling attendee information. This includes implementing strong data security measures and obtaining explicit consent for data processing.
• Developing safety and security protocols: These protocols should include emergency response plans, crowd management and measures to address potential threats.
• Ensuring permits and licensing are in place: Ensure that all necessary permits, licenses and approvals are obtained for the event, including those related to food service, alcohol and public gatherings.
• Employing proper documentation: Keep detailed records of all communications, contracts, agreements and incident reports related to the event. These documents can be crucial if legal issues arise.
• Develop a risk management plan: This plan should identify potential risks and outline strategies to mitigate them. Conduct risk assessments regularly.

“By implementing these measures and working closely with legal counsel, corporate meeting planners can significantly reduce the likelihood of legal issues and protect themselves and all involved parties from potential liabilities,” Schaumann says. “Effective risk management and proactive planning are essential for successful event execution while minimizing legal risks.”

Vendors & Legal Concerns

In the area of corporate meeting and event planning, a myriad of vendors is often hired to provide everything from food and beverage to entertainment to security. As a result, various vendor-related legal issues can arise that planners need to be aware of.

“Contractual issues are among the most common legal problems with vendors,” Schaumann says. “Disputes can arise over contract terms, performance expectations, payment and more. It’s crucial to have clear, well-drafted contracts that specify all terms and conditions.”

In addition, vendors may fail to deliver goods or services as agreed upon in the contract. This could include subpar quality, late deliveries or inadequate staffing levels.

That’s why it’s important to establish performance expectations and remedies for non-performance in contracts.

“Vendors also may unexpectedly cancel their commitments or go out of business, leaving the corporate meeting planner in a difficult situation. Contracts should include cancellation policies and contingency plans for such situations,” Schaumann says. “And be sure that the vendors carry their own liability insurance to cover any accidents, damages or injuries that may occur in the course of their work. Be sure to verify that vendors have adequate insurance coverage and it may require them to name the planner as an additional insured.”

Along those same lines, vendors may use subcontractors or temporary staff who should be properly classified and paid in accordance with labor laws. “Meeting planners should ensure that vendors adhere to labor and employment regulations,” Schaumann says. “What’s more, vendors’ employees or representatives may interact with event participants and should adhere to anti-discrimination and anti-harassment policies to prevent legal issues related to discrimination or harassment claims.”

Another issue that may arise is vendors using copyrighted materials or trademarks without proper authorization, potentially leading to intellectual property disputes. Schaumann says meeting planners should ensure that vendors have obtained the necessary permissions for any intellectual property they use.

“And because vendors may handle attendee data, any mishandling or data breaches can lead to legal liabilities. Ensure that vendors comply with data privacy regulations and have robust data security measures in place,” Schaumann says.

These days, environmental compliance and sustainability issues are top of mind for many corporate meeting planners and attendees. As such, some vendors may be involved in activities that impact the environment (e.g., waste disposal, energy use). Meeting planners should ensure that vendors comply with environmental regulations and have appropriate permits if needed.

Vendors may dispute payment, claim additional fees or invoice inaccurately. Corporate meeting planners should carefully track payments, reconcile invoices and document all financial transactions.

“Conduct due diligence when selecting vendors, including checking references and reviewing their track record. And clearly define expectations and responsibilities in contracts, including dispute resolution mechanisms,” Schaumann says. “Also be sure to maintain open lines of communication with vendors to address issues promptly and work with legal counsel to draft and review all vendor contracts, and ensure that all necessary permits and licenses are in place for vendors.”

Taking these precautions can help meeting planners minimize legal risks and ensure that their events run smoothly without significant legal disruptions.

“After the event, conduct a comprehensive post-event review to assess what went well and identify areas for improvement,” Schaumann says. “Use this feedback to enhance future risk management strategies.”

Continuous Evolution

The corporate meetings and events industry has evolved and changed in recent years and so too have the legal issues surrounding the industry. The landscape today is characterized by several significant changes compared to the past. As Schaumann explains, these changes are influenced by various factors, including advances in technology, the emergence of new regulations, and the evolving nature of the meetings and events themselves.

Schaumann points out that the most significant changes in recent years are the increased focus on data privacy and security. Regulations like the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) have placed strict requirements on how personal data is collected, processed and protected during corporate meetings and events.

“Meeting planners must now take data privacy seriously and implement stringent measures to comply with these laws,” Schaumann says.

In addition, accessibility has become a central concern in the legal environment of meetings and events for those attendees who have physical limitations including mobility, hearing and sight issues. Laws like the Americans with Disabilities Act (ADA) require event organizers to ensure that their events are accessible to individuals with disabilities. This includes providing accessible venues, accommodations and digital content.

“The COVID-19 pandemic also highlighted the importance of force majeure clauses and crisis management plans in event contracts,” Schaumann says. “Many events were canceled or rescheduled due to unforeseen circumstances, and legal disputes arose regarding contract obligations. Going forward, event contracts will likely include more comprehensive force majeure provisions.”

Other evolving issues that meeting planners need to continually focus on within the meetings and events realm include:

• Intellectual property and copyright: The digital age has brought about complex issues related to these. The use of copyrighted materials (e.g., music, images, videos) in presentations, virtual events and livestreams has led to legal challenges. That’s why Schaumann says meeting planners must be vigilant about obtaining proper licenses and permissions.
• Liability and security: In light of recent acts of terrorism, event security and safety and health protocols, continue to be “top of mind” legal issues that meeting planners need to contend with. Event organizers face increased scrutiny and potential liability for the safety and security of attendees.
• Hybrid and virtual events: Of course, the rise in virtual and hybrid events has created some new legal issues, including those surrounding the use of digital platforms, online registration and virtual sponsorships. Because contracts for virtual events may differ slightly from traditional in-person events, it is important for meeting planners to stay abreast of these differences.

“As for the future, it’s likely that the legal environment surrounding meetings and events will continue to evolve. New laws and regulations may emerge, especially in response to emerging technologies and changing societal norms,” Schaumann says. “Meeting planners will need to stay informed, adapt to legal changes, and prioritize legal compliance to minimize the risk of litigation and legal challenges. Additionally, the willingness to adopt best practices in risk management, contract negotiation and dispute resolution will remain essential in navigating the evolving legal landscape of events.” C&IT