Protect Your Event with Event Cancellation Insurance from Tokio Marine HCC – Specialty Group

By Specialty Group

What is Event Cancellation Insurance?

Event cancellation insurance is a specialized coverage that safeguards you against the net loss incurred due to unforeseen circumstances that result in the cancellation, abandonment, postponement, interruption, curtailment, or relocation of your event. It offers financial protection by covering either sunk costs/expenses or lost revenue arising from circumstances beyond your control.

Why is there a need for Event Cancellation Insurance?

While most events proceed smoothly, it is crucial to consider event cancellation insurance when organizing large gatherings. Numerous examples exist where events had to be canceled or were disrupted unexpectedly. For instance, last year, the highly anticipated When We Were Young music festival faced an unfortunate cancellation of its Saturday performances due to unprecedented high winds. The National Weather Service had issued a High Wind Warning, predicting sustained winds of 30-40 mph and gusts potentially reaching 60 mph. In light of these dangerous conditions, the decision to cancel was made just an hour before doors were set to open. This unforeseen circumstance left many disappointed, especially those who had eagerly awaited the event.

This scenario illustrates the unpredictable nature of large-scale events and the myriad of uncontrollable factors that can impact their success. Event cancellation insurance, like that provided by Tokio Marine HCC - Specialty Group, becomes more than just a safety net; it's a crucial pillar of financial stability. Without such coverage, event organizers might grapple with insurmountable financial losses, casting a shadow over future events. With it, however, they can navigate unforeseen challenges with confidence, ensuring the continuity of their business and preserving the trust of their audience.

What are Common Perils Covered under an Event Cancellation Policy?

Common covered perils could include severe weather conditions, venue unavailability due to fires, floods, or power outages, threats or acts of terrorism, earthquakes, wildfires, labor strikes, and the non-appearance of a key person. Additionally, for many event types, if a covered circumstance results in a significant reduction in attendance, the event organizer will be protected. With this comprehensive coverage, event organizers can plan events with confidence, knowing that they are protected against various risks that could disrupt or cancel the event.

How Tokio Marine HCC and Event Cancellation Insurance Can Help

Through depth of underwriting expertise and decades of industry experience, we excel in handling the intricate demands of live events of all kinds, providing coverage with the most generous limits in the market. Our insurance policies not only reimburse expenses and potential revenue losses, but also enable organizations to rebound swiftly and sustain their operations without enduring substantial financial burdens. Event Cancellation coverage fosters seamless event continuity year after year, empowering event organizers to conquer unforeseen challenges while upholding the event's reputation and ensuring its continued success.

Sources:

[1] Variety.com. When We Were Young Festival Cancels Saturday Performances Due to High Wind Warning (2022) Retrieved August 15, 2023, 2023, from https://variety.com/2022/music/news/when-we-were-young-festival-cancels-high-wind-warning-1235411769/