Planning & Promotion

Event Cancellation Insurance: How Does It Affect the Event Stakeholders?

Eventually Learning Team
Events are unpredictable – will be an understatement if we look at the stats of the previous three years. UK’s events ‘reinsurance’ scheme makes us realize that the events were volatile even before the pandemic struck the events industry and the world turning it topsy-turvy. But what the events community learned in due course is that not all their time, money and planning has to go in vain! The Events Cancellation Insurance covers most of the financial aspect of the contingency.

Event Cancellation Insurance provides financial security and support if under any unforeseen circumstances the event postpones, is curtailed or gets cancelled! There are specific terms and clauses attached to the insurance agreement like Force Majeure which insure the event from internal as well as external forces.

How does the Event Cancellation Insurance affect the different stakeholders? Let’s take a look.

Event Insurance For Organizers

Event Insurance Policies work majorly for the event organizers. The financial protection provided by this policy ensures that the organizer does not lose their financial contribution within the event planning process. It also saves the organizer’s reputation from getting maligned due to the event cancellation as it provides full cover to the other stakeholders including the attendees.

The event cancellation insurance covers what liability the organizer has towards refund for the attendees. It must have a clause that specifies the responsibilities of the organizer during occurrences beyond their control – for example the COVID pandemic, earthquakes, hurricanes etc.

How Can An Event Organizer Access The Cancellation Insurance?

There is a long documentation process and lengthy sessions of paperwork that can get an event organizer the desired cancellation insurance. Here are a few steps that can be followed in order to get your event insured:
  • The event organizer must research about the types of event insurances they can get – there are specific event insurances for liquor, general liability, cancellations and more.
  • Once the organizer decides which insurance they need, they can head over to different portals and insurance companies to get the bang for their buck!
  • There are many different web portals, insurance firms and more like eve, CPH & Associates and Thimble, that provide insurance for events.
  • After getting a quote and one on one meetings with these firms the organizer can zero in upon one of these and choose the best plan pertaining their B2B event.

Benefits of an Event Cancellation Insurance

The Event Cancellation Insurance covers many occurrences including natural and man-made incidents like unforeseen weather conditions, power failure, performer cancellation, performer abandonment, postponement, interruption, relocation, terrorism and more. Here is how the event cancellation insurance benefits the event organizer:
  • It helps cover the entire investment of the organizer in monetary terms.
  • It also builds a bond of trust between the organizer and the attendee as the latter feels their invested money is in safe hands. The attendees are willing to attend the event even if it is postponed or cancelled and reorganized.
  • The event cancellation insurance also helps event organizers get other event stakeholders on board including vendors and sponsors.
  • During mishaps like the speaker cancelling on the event or the vendor backing out – the organizer still holds onto the repute they have with the official insurance document covering all expenses for the organizer and the attendee.

Event Insurance For Sponsors

Sponsors invest their money in events – it is understandable that they want the right ROI from the event. But what if the event cancels? Then the branding, awareness, lead generation or any specific goal the sponsors had in mind would fail to accomplish! This is why the event cancellation insurance is important for the sponsors, as it helps them cover the initial costs and investments so that they have a financial cover at the very least.

At huge expos and tradeshows covering expensive machinery, the sponsors have special cancellation insurance and recovery clauses attached to the contracts. In case of a fire at the venue during the event or some other unprecedented calamity – the sponsors get full cover for their losses inclusive of any harm to the machinery or hazards to the health of any of the professional from their organization.

Event Insurance For Vendors

There are special event insurance that the vendors can access when it comes to events. They can get their entire venue insured, alcoholic insurance, and caterer insurance and many more such insurances are available in the industry for the vendors. These insurances cover the event cancellation term and make sure that the vendor’s investment in terms of food, beverages and venues does not create losses for them.

Conclusion

Event cancellation insurances are important for all the event stakeholders including the attendees and the speakers, but for the most of it – the insurance affects the event organizers, sponsors and vendors. Event Cancellation Insurance policies introduced by the UK and USA government are necessary to stabilize the event industry irregular patterns of the world.

Frequently Asked Questions

When is the right time to get my event insured against cancellation?

You must get your event insured irrespective of the place, time and date. It is important as ‘Force Majeure’ situations and unforeseen circumstances can occur anytime and anywhere. Having a back-up for the financial investments is always a good idea for the organizers as well as the sponsors.

What are the different types of event insurances?

The different types of event insurances are:
  • Special event insurance
  • Professional liability
  • Business equipment protection
  • Event cancellation
  • Workers’ comp
  • Terrorism

How can I claim an event cancellation insurance?

There are six steps to claim your insurance when your event gets cancelled:
  1. Negotiating a Settlement wiith an Insurance Company.
  2. Gather Information Needed For Your Claim.
  3. File Your Personal Injury Claim.
  4. Outline Your Damages and Demand Compensation.
  5. Review Insurance Company's First Settlement Offer.
  6. Make a Counteroffer.

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