Cancellation and Abandonment Insurance
If you’re interested in event cancellation insurance for an event, it’s highly advisable to secure your policy as soon as possible. In particular, if you are seeking cover for a specific occurrence causing cancellation of your event.
Take the tube strikes for example; a client of ours took out a policy for event cancellation and abandonment insurance. Included was a specific request to cover against Riot and Civil Commotion (which includes Rail strikes).
As the policy was secured some time before the strikes occurred, the client had nothing to worry about. However, had they decided to take out the policy upon hearing about the Rail strikes, no cover would have been provided. This is because it would of been classified as a known circumstance. Event cancellation policies operate with the condition that there are no known circumstances which could cause cancellation of the event.
Morale of the story – the sooner you take out your cancellation and abandonment insurance policy the better!
What does Event Cancellation Insurance Cover?
In terms of financial protection, cover can include costs and expenses. These can include venue costs, advertising, promotional material and marketing, merchandising and so on. Cancellation cover can also extend to include gross revenue such as ticket sales, space and pitch hire, sponsorship and advertising.
Cover can include cancellation due to weather where conditions are such that it would make the running of the event dangerous or inclement weather prevents crowds from turning up. Adverse weather cover can extend in isolation to include excessive rainfall and wind speeds.
Event cancellation insurance can also include protection should the venue be unable to hold the event due to sanitation issues, food poisoning or murder or suicide at the venue.
Further perils can extend to include terrorism and threat of terrorism, power failure, public transport failure or denial of access, TV transmission failure and natural catastrophes.
Whilst your event cancellation policy can provide comprehensive cover it will not provide protection for lack of sales, response or attendance, variations in exchange rates or currency stability, financial failure, insolvency or default; support or withdrawal of support by any party.