Event cancellation is a major bugbear of the hospitality sector. But thanks to event cancellation insurance, event organisers (including hospitality businesses) no longer need to worry about unforeseen disruptions.
The Importance of Event Cancellation Insurance
Minimising the risk of your event being interrupted, postponed or abandoned is a tall order. Any of these could be a disruption:
- Natural disasters / Disease outbreak
- Loss of access to public utilities
- Celebrities or performers not showing up
- Terrorism (or the threat of it)
- Closed venue or accessibility problems
- Travel delays / The failure or non-delivery of equipment.
Event planning costs may be considerable. Costs of sponsorship, corporate hospitality, merchandising and marketing all add up – not to mention reputational damage to your business if an event has to be cancelled.
What Does Event Cancellation Insurance Cover?
Policies vary, but event cancellation insurance can cover:
- Costs and expenses you can’t recover – this can be specified or 100% coverage
- Gross revenue, which protects your business from loss of event profit
- Additional costs you incur in trying to prevent the event’s postponement, interruption, or cancellation
- Public relations expenses to maintain your brand reputation
- Money in transit to a bank
- Expertise ‘on the ground’, including about risk minimisation, to your event staff, and
- Extra costs for not being able to leave a venue on time.
Choosing the Best Event Cancellation Policy
Policies can cover you for financial losses between $10,000 and $10,000,000. Often you may be contractually obliged to take out a particular type of event cancellation coverage, so make sure you understand the level of cover you need. When we assess tailored insurance options for our clients, we consider:
- Size and scale of the event / Event type and nature
- Location / Duration
- Budget / Anticipated event revenue
- The excess that suits you to pay.
Other Types of Event Insurance
You can narrow your coverage or keep it broad. Here are your options:
Event cancellation insurance: for when you must postpone or cancel an event thanks to unforeseen circumstances.
Liability insurance: such as when a third party is injured or their property damaged during the event.
Property damage insurance: to protect against property damage, including the venue, decorations, equipment etc.
Liquor liability cover: where you serve or sell alcohol and there’s a related incident
Equipment insurance: for peace of mind if you’re using your equipment for the event
Weather insurance: for losses resulting from adverse weather
Your business doesn’t have to absorb all the costs of an event disruption. Let us help you ‘insure’ for the success of your events.
If you would like to know more about event cancellation insurance in the hospitality sector, please CLICK HERE, or contact us for more information.