Liability Q&A with Annette Stepanian
One of the questions we have been asked a number of times is about how does COVID19 affect my business, couples, and employees from a liability standpoint. And, while we have our own experience to draw on, we wanted to bring in a legal expert to provide a more definitive answer. So, our friend and lawyer for entrepreneurs, Annette Stepanian, blocked some time to answer these questions for us. Read on for her sound advice and use her answers to help inform your own plan.
*While Annette is a lawyer barred in the state of California, you should always consult your own lawyer for legal advice in your own state.
What guidelines should I use for myself as events are slowly allowed to happen again?
For the state/city where events are being scheduled, stay up to date on the ordinances/orders regarding group gatherings as well as any guidance from the CDC and/or your local health department about best practices.
How do I address the liability of working a wedding this year and protecting my team from COVID? How do we protect ourselves both physically and legally over the next year if we are doing onsite weddings before a vaccine?
Safety guidelines are continuously changing as we learn more about COVID-19. For the state/city where events are being scheduled, stay up to date on the ordinances/orders regarding group gatherings as well as any guidance from the CDC and/or your local health department about best practices.
If you don't already have one, think about who would assist you in the event that you get sick. Do you have a team or other planners/vendors you can turn to in case you are physically unable to perform the services? Does your contract address what your client can expect if you are unable to personally deliver the services?
Reiterate with your clients that they are required to be in compliance with any laws or ordinances in place and that you will not perform services in violation of those laws. You may also consider including a clause addressing the right to a safe and healthy working environment.
Also, if feasible, try building up a savings/cash reserve for your business to help carry your business for several months should there be a complete loss of income for a period of time.
How do I handle new contracts and postponement fees in a post COVID-19 World?
Hopefully your contracts already addressed issues like event rescheduling and cancellation. Revisit these clauses in light of the possibility that COVID-19 (or a similar virus) might still exist or resurface in the future.
Will your policy be to allow a client to postpone? If so, are there any conditions that will apply? For example, some vendors are permitting postponement up to a year or 18 months with no extra charge.
From what date will you calculate that time period: the original event date or the date they notify you of their intention to postpone? Some vendors are requiring a fee for any postponement, if the new event date falls into a new calendar year, or if there are multiple postponements.
If you charge a fee, what will it be and when is it due? Does the client have to continue making payments to you even though the event has been postponed or will those be deferred as well?
When developing your policy, take into account the needs of your specific business as well as your market. And, remember—any changes to a signed agreement should be documented via an amendment to the contract and signed by all of the parties. It is also a good practice to document any contract cancellations in writing (i.e., an Agreement to Terminate a Contract) and signed by the parties.
Annette has many resources and templates pertaining to amendments and agreements to terminate a contract and much more on her site if you are looking for further resources. Here is a direct link to her website.