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From: troll@sug.org (Alex Newman)
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Date: Mon, 14 Mar 94 12:46:52 EST
Message-Id: <9403141746.AA00960@bridge.sug.org>
To: carolingia@bloom-beacon.mit.edu
Subject: Re: autocrat's pledge


Fondest Greetings to you all:

Siubhan writes:

<We also hold privately sponsored events, run by an individual.  That 
<individual either buys liability insurance or the event is run with a 
<minimal risk of danger so that insurance is virtually unnecessary.
<
<See, it can be done.
<

It can be done, but not in the manner you outline.

Insurance is necessary.  Most sites won't even rent to an organization
or individual without insurance.  I certainly wouldn't.  Even if the
event is run with the best of intentions, accidents happen, and while
I consider myself to be reasonably brave, I wouldn't want to be
personally liable for damage caused to the site if we left the water
running in the kitchen, or a toilet backed up, or a candle scorched a
table.

Buying liability insurance is *expensive*.  When this whole uproar
started, I went to my corporate insurance broker and explained what we
needed (I'll happily provide the details to them what wants).  The
short version is that the type of coverage we want costs about $2500
per year, plus ~$200 per event.

The biggest liability of running an event as an individual is the tax
burden.  There may be ways around this, but on a basic level even a
little event like Maslenitsa pulled in about $1300 gross.  Of course,
the barony doesn't see that money because it is gross, not profit (we
have to pay for the site, the staff, the food, etc).  If it were a
privately run event, to the IRS it looks like Alex Newman made $1300
off of running it - and they'd want their share.

I love my barony, but not enough to go three rounds with the IRS.  I
do too many grey-area things already...;-)

--Aleksandr Yevsha	/	Alex Newman
  Medieval Merchant	/	Corporate Raider


++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Alex Newman		Sun User Group		"In a year and a day come
troll@sug.org		1330 Beacon St.,	to the Palace, wearing a
(617) 232-0514 voice	Suite #315		robe of chicken feathers
(617) 232-1347 fax	Brookline, MA 02146	and carrying a 6' radish."