Signing such a facility contract, without sufficient insurance to cover the risk, can cause catastrophic repercussions for any organization. As a matter of routine, most show managers now consult with their legal advisors and insurance brokers before signing any facility contract. We won't assume responsibility, if, for example, another event is in the building, or if the building is under partial construction. But indemnification is a two-way street. Show management requires indemnification from exhibitors and service contractors.
Contractors then seek indemnification from subcontractors, and so on.
IAEM will soon release a new fact file on the topic. Smith says the clause is not negotiable at his state-owned facility because Georgia law prohibits third party indemnification. On the other hand, Jeff Blosser, Director of the Oregon Convention Center, will negotiate, and says the language of their indemnification clause has been changed to spell out responsibilities more clearly. I think you'll see that happening at more facilities because it's becoming such a major issue. The Professional Convention Management Association has addressed the subject of convention facility contracts by appointing a task force to recommend guidelines to help make contracts fair, balanced, flexible, understandable and tailored to the industry.