We realize that a lot of effort and capital goes into planning an event, especially a large one. Moreover, a cancelled event can have significant impacts on your overall revenue. Even if you move your event online, which many groups are doing, you may have one of those large events that simply can't recover from the impacts of a cancellation or disruption.
What kinds of disruptions or unforeseeable issues are we talking about?
- Weather related cancellation (blizzard, hurricane)
- Significant person not attending (celebrity or star of the event not able to attend)
- Forced cancellation due to health issue (e.g. COVID-19)
If those are the case, then perhaps you would want to mitigate your risk with event cancellation insurance. Here is how it works:
- The policy will be written to evaluate your past revenues at this event and cover a loss in revenue due to a "covered” reason for cancellation. These covered reasons will be clearly stated in the policy but can include some of the examples listed above.
- Your organization will pay a premium for the policy. These premiums usually have a $5,000 minimum and increase based on the size of the coverage. So this is not a viable option for smaller events.
- If a covered situation happens, and you have to cancel, then you can file a claim. COVID-19 is not going to be covered, too late for that! But, it is possible that future pandemics could be. Check with your insurance agent.
Want more information about this insurance? Download an info sheet here.