Understanding Event Cancellation and Postponement Insurance Cover
Events ranging from music concerts, sporting events as well as other forms of live events are capable of generating tons of money for event organizers if well executed. Rarely is the success of such events a foregone conclusion. There are a number of factors that can cause an event not to take off leading to significant monetary loss for those financially invested in it.
This is where event cancellation and postponement insurance cover comes in.
Some of the factors that might cause an event to get cancelled or postponed include bad weather, a performer not feeling well, venue damage or performer’s death. Any one of these events can have a catastrophic effect on the event’s financiers. Thankfully though, there is insurance coverage for those that are in sports and entertainment industries.
There are a number of insurance policies that are designed to protect from financial losses that are caused by the postponement or cancellation of an event. We have covered them below:
Event Cancellation Coverage
This type of insurance cover is aimed at offering protection for various entities involved in organizing almost any event. This is the reason why sports teams, promoters, broadcasters, and venue owners should consider purchasing this type of insurance.
Even though the terms of the policy might vary from one carrier to the next, event cancellation policies usually cover monetary losses caused by the following factors:
- Reduced attendance
For the coverage to kick in, the insured has to prove that the above mentioned factors were beyond their control.
The success of many events especially in the entertainment industry are anchored in the appearance of a specific artist or band. In the event that the star performer fails to appear, it might mean that the entire event gets cancelled or postponed. This is the reason why non-appearance coverage is necessary.
Non-appearance coverage can either be purchased as a stand-alone policy or it might be bought to complement an event cancellation insurance cover.
Some of the reasons why a star performer might fail to appear for an event includes:
- Inevitable delay
There are some situations though that are not covered by the non-appearance insurance cover such as:
- Inability to perform caused by drugs and alcohol
Events that take place outdoors especially sporting events are most likely to be affected by bad weather. Some insurance companies offer rain and snow insurance covers to protect event organizers from losses arising from inclement weather. Normally, the specific amount of snow or rain required to activate the policy will be specified.
If bad weather results in a reduced event turnout, that is considered grounds for the activation of the rain and snow insurance. Event organizers can expect to receive advertising costs, sales, or lost profits even when the event has not been cancelled or postponed.