What is event insurance and what kind of protection does it offer?
Event cancellation insurance is a specialized insurance and not offered through all insurance companies at this time. Two insurance companies in Canada that do offer event cancellation coverage are Chubb Insurance and K & K Insurance.
Interest and demand for this type of insurance coverage is growing, especially after the recent devastation in New Orleans and Cancun, where buildings were destroyed and extensive time will be required for entire infrastructures to be rebuilt. Companies and organizations that were scheduled to hold events in these locales in the near future had to move their dates or relocate their event to another area. This involves several hard costs.
Event cancellation insurance can underwrite loss for travel, venue deposits, rescheduling costs, as well as other costs including planning, food and beverage, entertainment, décor, staging, lighting and audiovisual, staffing, promotional material, etc. should your event be cancelled because of:
- Natural disasters such as earthquakes, tsunamis, etc.
- Physical damage to the premises where your event is to take place.
- Accommodation at your destination becomes uninhabitable.
- No access to your hotel or venues.
- Complete cessation of your airline.
- Complete cessation of your arrival airport.
- Complete cessation of your travel suppliers.
- Mandatory evacuations due to weather, natural disasters and other (terrorism threats etc.).
- Mandatory relocating.
- Mandatory rescheduling of your event due to conditions beyond your control.
- Strikes by contracted suppliers including airlines, hotels, venues, air traffic, public transportation and other infrastructure workers.
- Withdrawal by authorities of obtained licenses and permits.
- Late or non-arrival of essential items to your event.
- Infrastructure rebuilding delays.
- National mourning.
- Definition of Acts of God and how it affects event cancellation policy.
A request for this type of custom insurance can be placed through your insurance broker. An application would be submitted for review as to the cost and the risk being insured. You would then receive written confirmation of the cost of the policy, as well as the specific terms and conditions that would need to be met.
Some examples of event cancellation insurance claims:
Adverse Weather
- Heavy snowfall causes curtailment at exhibition
- Rainfall affects tennis, cricket matches, golf events, motor races
- Freezing weather conditions affect soccer matches
- Gale force winds cause circus tent to collapse
- Severe fog on motorway causes curtailment at exhibition
- Freak hailstorm causes cancellation of speedway event
- Flooding causes grandstand seating to sink
- Lightening causes fire damage at event venue
- Forest fires force cancellation of event
Structure Damage
Utilities Failure
One offs
Another type of insurance that should be considered is event liability insurance. This insurance would cover your organization and your sponsors in the case of bodily injury and/or property damage during your event.
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For paid professional event planning consulting – event design, site selection critique, venue and supplier contract review, budget analysis, strategic planning, event logistical and timing requirements, and on-site orchestration – contact Judy directly at Judy Allen Productions.
Advice and recommendations are based on limited information provided and should be used as a guideline only. Neither the author nor CharityVillage.com make any warranty, express or implied, or assume any legal liability for accuracy, completeness, or usefulness of any information provided in whole or in part within this article.
