For organizations planning large-scale events, from national conferences and global tradeshows to high-profile concerts, months or even years of work can be derailed by a single unexpected disruption. That’s where event cancellation insurance steps in, offering financial protection when the show simply can’t go on.
As an insurance advisor, helping clients understand this coverage could be the difference between a minor setback and a major financial loss. Let’s explore the importance of this niche yet crucial insurance solution.
Event cancellation insurance provides financial protection if an event is postponed, canceled, or interrupted due to unforeseen circumstances beyond the organizer’s control. Covered causes can include:
It can also reimburse a broad range of expenses, including venue deposits, advertising costs, sponsorship obligations, and travel.
A specialized form of event cancellation coverage is known as Contingency Insurance, which is designed to protect the policyholder if an event, a show, or series of shows are missed, postponed, abandoned, or rescheduled.
Thanks to the underwriting capabilities of Lloyd's of London, U.S. based promoters and event organizers can access extraordinary benefit limits through certified Lloyd's Coverholders. This makes Contingency Insurance particularly valuable for large-scale or high-profile events.
Policies are typically underwritten on a broad form, offering protection against a wide range of perils. This flexible and comprehensive structure ensures the policy can be tailored to match the event's specific risk profile.
Absolutely! Especially when the financial stakes are high.
Consider this: an international auto show with over $20 million in revenue on the line was concerned about the financial consequences if an unforeseen circumstance, such as adverse weather, civil commotion, or venue destruction, would force the cancellation of the event. With more than a million attendees expected and over 100 exhibitors confirmed, the organizers had heavily invested in promoting the event and weren’t willing to take any chances.
To protect that investment, a contingency insurance policy was structured to safeguard against the financial ramifications of a cancellation — particularly the loss of the $20+ million already spent on marketing and production.
This insurance can be structured to protect various stakeholders, including:
Whether your client is a corporate marketing team, trade association, concert promoter, or nonprofit group, this protection can be a game-changer.
When discussing event cancellation insurance with clients, here are a few best practices:
Whether it's a 5,000-person medical convention or a nationally televised concert, planning an event is a major financial commitment. And despite best-laid plans, the unpredictable is always lurking.
Event cancellation and contingency insurance offer peace of mind, allowing your clients to focus on execution rather than uncertainty. As their trusted advisor, you can introduce them to this specialized solution and help protect the investments they've worked so hard to secure.
As a Lloyd’s of London Coverholder, Exceptional Risk Advisors is here to support you with your clients’ event cancellation and contingency insurance needs. With deep expertise in the market, we’ll guide you through the process helping you deliver standout solutions and shine as a rock star advisor.