Event Cancellation Insurance Products

Event Cancellation insurance covers events, festivities and special occasions that have to be cancelled or postponed due to unforeseen circumstances.

 

Organizing an event, whether it is a small private function or a large scale conference requires extensive forward planning, co-ordination and communication with third parties. No matter how ironclad the plan can be, incidents such as a natural disaster or non-appearance by a key person can halt proceedings. An Event Cancellation insurance policy can cover the sponsorship of public or private events by covering any costs and expenses that need to be paid as a result of abandonment or postponement.

Event Cancellation insurance can be sold to anyone organizing, hosting, promoting or sponsoring an event. An event may rely on several essential factors such as a venue, accessibility, key personnel, facilities, catering or safety. All it takes is disruption to one of those things to threaten the execution of any event. If a solution cannot be resolved quickly then the whole event may have to be cancelled, postponed or abandoned.

 

Types of event that can be covered under Event Cancellation insurance include:

• Private functions
• Meetings
• Weddings
• Carnivals
• Fairs
• Conferences
• Trade shows
• Exhibitions
• Festivals
• Performances (live music, film and theatre)
• Concert tours
• Tournaments
• Sports events

An event may be cancelled for many different reasons. However all it takes is for one significant reason to disrupt all provisionally made plans, or forces the organizers to abandon it if it has already started. Aside from the event itself, other costs will need to be considered such as reimbursements, paying for contracted services and even compensation if cancelled with short notice. Event Cancellation insurance can cover the following:

 

• Adverse weather/natural disaster
• Non-appearance (or a no-show)
• National mourning
• Political risks, like war, terrorism, and riots
• Food poisoning
• Crime scene at venue
• Communicable diseases like Swine Flu or SARS

While most events are covered, some Event-related products are customized specifically for weddings, festivals and conferences. When considering an Event Cancellation policy it is advisable to check if a broad Event Liability insurance policy would be more appropriate or one that focuses on one particular type of event.

 

Not all Event Cancellation insurance policies cover acts of terrorism or warlike activities. Make sure that all wording and exclusions are read carefully as the increase of terrorist attacks could cause further damages if not covered properly.

Event Cancellation policies taken out shortly before a claim may also not be valid. A 14 day period is the average time it takes for an Event Cancellation policy to become active.

Other general exclusions may include:

• Cancellation due to lack of ticket sales/poor attendance
• Variations in exchange rates or currency stability
• Bankruptcy of host/organizer
• Support or withdrawal of support by any party

The cost of Event Cancellation Insurance will be determined by the following:

• The type of event
• The location of the event
• The predicted attendance of the event
• notification costs
• Expenses/reimbursements (for purchased tickets, staffing costs, catering, etc)
• Estimated damages