Event Cancellation

Firm Presentation

In Cooperation with

Event Cancellation Insurance and Non-Appearance

Policies can be created to protect revenues or expenses for those with insurable interest should an event be cancelled.

Nearly EUR 1,000,000 in losses resulted from cancellations immediately following September 11, 2001: the Ryder Cup was postponed, the NFL postponed its games by one week. Regardless of the size of an event, more and more event organizers are looking at event cancellation insurance as a required purchase rather than a discretionary one. Whether the issue is adverse weather, threat of terrorism, non-appearance or any other uncontrollable act, event cancellation policies can be tailored to fit your specific needs and concerns.

Arranging an event can result in high costs and financial commitment incurred from the planning stages onwards. If an event is cancelled or abandoned, costs will almost certainly be irrecoverable whilst relocation or postponement can cause extra expense for organisers and other parties involved.

Financial loss could include:

Costs which have been incurred but cannot be recouped
Any form of income received but which must be returned (such as admission fees, sponsorship monies, merchandising contract payments and broadcast rights
payments)
Additional costs incurred in postponing or relocating the event, or in minimising the loss
Loss of budgeted profit

What is event cancellation insurance?

Event cancellation insurance will indemnify the insured for irrecoverable costs if an event has to be cancelled, abandoned, postponed, interrupted or relocated due to any cause beyond the control of the insured or other party essential to the fulfilment of the event, except under those circumstances which are specifically excluded.

Cover is available on an individual or multiple event basis, the most common of which are conference, exhibitions, trade fairs, concerts, theatre productions and sporting events.

Non-appearance insurance

Many events rely upon the appearance of a key speaker, singer or performer, the non-appearance of whom would lead to the event's cancellation. Non-appearance insurance can be purchased to protect against the financial loss in the event of such non-appearance, whether caused by accident, illness, death or travel delay, along with the cancellation of the event due to any reason beyond the organisers control.

Who is it for?

It is usually the Event Organisers that purchase this form of cover however, there are other parties that may be affected by an events cancellation and who are able to purchase this cover:

Sponsors – while sponsorship payments may be refunded, the majority of expense on specific advertising, hospitality and merchandising will be lost
Performers – to ensure the receipt of the fee or guarantee in the event that they are unable to perform
Broadcasters – risks that may be covered include lost production expenses and advertising revenues and the failure of transmissions
Associated Companies – such as tour operators and hospitality organisers who will have irrecoverable costs and lost revenue if the event is disrupted

Extensions to cover

These include:

Terrorism – Following 9/11, terrorism has been a blanket exclusion on such policies. Cover can be bought to cover the cancellation or abandonment of an event following an act of, or the threat of terrorism
Adverse Weather – coverage can be purchased to protect against the affects of weather on an event which leads to its cancellation or abandonment