In this issue of TRADE NEWS, we focus on the upcoming Expo 2027 in Belgrade. A company’s participation in an international exhibition is a major investment and a strategic step. It can support its expansion into foreign markets, secure new business partners and strengthen its brand. However, success depends on thorough preparation, which should also include quality insurance coverage. We discussed this and other topics with Michal Krajčovič, Head of Industry Risks Insurance Division at ČPP.
What is the best way to insure a company’s participation in an event of this kind? Although your final insurance solution is always tailored to the client’s specific needs, can you give any general recommendations?
Each event of this kind is specific, and therefore every insurance policy is unique as well. Trade fairs are a good example of how broad insurance coverage can be.
We insure not only the transport of goods, but also the exhibits, equipment and fittings of exhibition stands or on-site facilities. Exhibits are typically covered against natural hazards, theft and vandalism. The insurance should also include the exhibitor’s liability for damage or injury caused to third parties – for example in the event of a visitor's injury due to poor installation, insufficiently secured premises, damage to exhibits during installation or damage to rented premises. Insurance can be arranged either for specific risks or on an all-risks basis.
Where do exhibitors or organisers often make mistakes?
They delay arranging the insurance and only take out the policy “at the last minute”. In the case of an outdoor event, adverse weather and the resulting complications, damage or even the need to cancel the event can be insured no later than 14 days before the event takes place.
Early involvement of our experts in the project phase will have a positive impact on the cost of insurance.
In our previous interview, we discussed sustainability and support for green energy, as well as the fact that you can provide services to clients as early as the project planning stage in order to ensure the safest possible installation, and thus the most effective insurance coverage. Through our website www.itradenews.cz, readers have expressed interest in the scope of these services. What projects do they cover, what do you recommend, and what do you offer that is different from other insurers?
As part of the VIG, we support clients on their journey towards more sustainable operations. However, this is not only about the insurance coverage itself, as our offering also includes the so-called risk management services. Our technical specialists can assess not only the level of fire safety of the entire operation directly at the client's premises, but also, for example, the risks associated with installing a photovoltaic power plant or a green roof, and recommend measures that will help ensure their safe operation.
Proper execution is essential in the case of photovoltaics. A company may have a production hall and technology worth several billion Czech crowns, while an improperly installed photovoltaic power plant poses a significant fire risk. We therefore emphasise to clients that solar energy itself is not the problem; the key is to ensure that the installation is carried out correctly and is appropriately secured. We can also insure installations without our expert consultation, but the early involvement of our experts in the project phase will have a positive impact on the cost of insurance, which is always appreciated by the clients. We provide these services to our clients as part of their insurance policy at no additional charge.
We also pay great attention to battery storage facilities. This is a technology that brings other specific risks with it. We also cooperate with banks and other partners on individual projects and provide clients with the necessary know-how to ensure that storage facilities are properly designed, built and subsequently operated safely. In my view, we are among the leaders in this area of insurance, and this year in particular we are seeing a significant increase in demand here.
This year’s extreme drought has affected not only Czech farmers. Water shortages threaten businesses across various sectors. How is your insurance company responding to this situation?
Climate extremes have become particularly pronounced in recent years, which carries a number of risks. Statistically, we can see that over the past ten years, the Czech Republic has experienced a significantly higher frequency of damage caused by floods, storms and now also drought. According to our data, in certain periods the frequency has increased by 50 to 100 percent compared with the past.
Time and again, we see that the first weeks of the summer holidays are a high-risk period for fires. This applies both to nature and to buildings and movable property. Prevention is therefore the right approach. And it’s not just about fires. Drought and high temperatures, together with water shortages, can be a genuine reason for business interruption across many sectors – including hotels, manufacturing companies or organisers of outdoor events.
Our entrepreneur risk insurance is tailored to the specific needs of each company. When arranging the policy, we discuss with clients the specific risks they face, which can significantly affect the price of the insurance.
For example, we explain to clients that some plots of land are unsuitable for construction due to flood risk, or that in areas with a high risk of hailstorms, the design of a photovoltaic project needs to be carefully considered. This also applies to water sources.
If I were to give one general piece of advice in conclusion, it is definitely worth consulting your plans with the insurance company before implementation and considering its recommendations. Our aim is to insure clients in such a way that we can compensate them in full for any potential damages. In other words, to let the clients know, that they can rely on us.
Michal Krajčovič was interviewed by Jana Jenšíková
Photo credits: Jan Branč
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