Typically you will have a contract with your venue. Your DJ will have a contract with you. If, for any reason, something goes wrong and the venue need to recoup some money for damages or other reason, they will claim against you. If your DJ does not have insurance in place you would need to pay the venue. DJ Public Liability Insurance (PLI) is an absolute must to protect your venue, you, and your guests. Simply DO NOT HIRE A DJ WITHOUT PLI.