A big event may have been planned and thousands of people are planned to attend it. Unfortunately, a couple days before the event is opened, a severe storm tore off the roof of the building, dumping rainwater and debris into the interior. The financial losses can be mind boggling for the event planners. Fortunately, the show may still go on if we have proper financial protection. The event cancellation insurance is an effective safety net that can prevent our big event investment against earthquakes, floods, hurricanes, riots and other catastrophes. It can be applied for trade shows, conventions, entertainment shows, exhibitions, musical concerts and sporting events.
With this insurance, incurred expenses can be reimbursed due to unpredictable situations that may result in complete cancellation. Months before the event is started, we may need to spend a lot of money for building deposits, costs for transportation, rescheduling costs, employees and others. Other than cancellation, we may also need to consider relocation and postponement; so it is a good thing if the insurer protects us against these occurrences as well. Regardless of our selections, event cancellation insurance should be crucial for our bottom line. If there are minor or major damages, insurance could also provide financial support for repair and rebuilding tasks.
Many insurers provide protection only for situations that are beyond the capability and control of the planner, such as riots, strikes, inclement weather and others. The insurer won’t provide coverage if the event is cancelled due to planner’s negligence. One component that we may include is the “non-appearance” coverage. It is essential if our event significantly relies on the appearance of a single person or a group of invited guests, players, performers and speakers. Extra expenses can be spent for workers and trucks in case of unexpected events, as an example if some objects need to be moved.
If possible, the insurance coverage needs to start as the planner pay the premium. It may also extend to one week after an event to cover the dismantling and finishing process. The entire cost could be paid on the policy-by-policy basis. Just like any other insurance policies, we also need to purchase the cancellation insurance far in advance. As the opening day becomes nearer, the premium rate will increase. Insurers know that the planner is desperate for coverage and they will agree for a higher premium rate. It is advisable to obtain at least three price quotes before buying a policy.
Consumers should also ask a sample of the copy of the policy. This will allow them to find things that are covered and excluded for the policy. It is also a good idea to determine whether previous events have been protected properly. Cancelled events due to catastrophic situations have happened before. The insurance policy may not be able to prevent bad things from happening, but we should still have financial backup to repeat the event in near future. This is an important thing for any event planner.Share This Article: