The outbreak of the covid-19 has dramatically shaken things up in the world. People and governments have been negatively impacted by the pandemic and quarantine restrictions put in place.
Creating large recessions in many countries of the globe, almost every industry has been hurt by this unfortunate turn of events. The event industry appears to have been decimated. With a sector mostly relying on gathering people, it seems only logical that event organizers would be impacted.
Whether it was small or large events, covered events or even sporting events, most of them have been postponed or cancelled.
As the virus continues to spread around the globe, many companies face the difficult decision of cancelling events. Indeed, public health concerns and the threat of travel restrictions and confinement measures remain present.
Thus, it is important to first and foremost consider whether losses associated with cancellation might be covered under event cancellation insurance policies.
In this article we will go over event insurance, risks and uncertainties that can be insured. We will also detail the types of losses that are covered under event cancellation policies. Finally, we will determine whether cancellations related to the pandemic are covered under event cancellation policies.
What is event insurance?
Event insurance is an insurance coverage that protects organisers from potential incidents. One of its most common forms is General Liability insurance. This insurance shields the insured from property or physical damage during the unrolling of the event.
What risks can be insured with event insurance?
As previously discussed, a general liability cover protects you and the other party against pretty much anything that could go wrong during an event.
This event insurance covers against any mishaps resulting from serving alcohol during an event. For example, it would protect the insured in case the bartender unknowingly serves alcohol to a minor.
Hired/Non-owned auto liability
If you plan to rent vehicles during an event, you should consider protecting yourself with hired/non-owned liability. It will cover vehicles rented for the occasion as well as injuries and property damage resulting from their use.
Third Party damage insurance
Third party damage insurance covers whatever damage is made during the event. It includes many things such as deteriorated furniture.
Worker's compensation insurance
Many events require hiring workers. In this case, worker's compensation insurance is extremely important. Indeed, it will cover the insured against financial loss resulting from the lawsuit of a potential injured employee.
This insurance is used whenever events must be cancelled for unpredictable reasons such as quarantine restrictions during the recent pandemic. While it is mostly used to cover against bad weather, it applies to cancellations due to infectious or communicable diseases like Covid19.
What types of losses do event cancellation policies cover?
Event cancellation policies cover losses resulting from the cancellation of an event. The types of financial loss that one may recover under an event cancellation policy vary from one policy to another.
Expenses that cannot be recouped
These costs can be found when a performer cancels because of a sickness. Some other costs are difficult to retrieve without an event cancellation policy. This includes any unforeseen incidents forcing the insured to cancel the event.
Some event cancellation policies may cover profits and revenues that were not made because of the covered event’s cancellation. This is the money organisers would have made had the event happened.
These are the expenses related to the organisation of the event prior to its unfolding. Most event cancellation policies cover these out-of-pocket expenses.
Other expenses incurred
Certain cancellation policies cover additional expenses that the insured might be exposed to when relocating or rescheduling the event to avoid its cancellation.
Are cancellations related to Covid-19 covered?
The outbreak of the pandemic has created major uncertainties on both sides of the spectrum when it comes to event coverage. Because each policy varies from one another, they must be reviewed to assess whether or not coverage is available.
Most Event Cancellation Insurance policies protect the insured against cancellations due to a "communicable disease outbreak". With that being said, many elements must be considered to benefit from this clause. Indeed, the location of the event, the date, where the participants are coming from, the size of the event are various factors that must be taken into account when it comes to ECI coverage.
BLACAZ's involvement with Event Cancellation Insurance
The threat or fear of the Covid-19 pandemic has profoundly affected the world's economy. With a fragile economic situation, it has never been so important for companies to protect themselves. The Event Industry has been hit and forced to postpone or cancel many events.
Headquartered in Singapore, BLACAZ's team works around the clock to satisfy its clients’ needs. Making sure that every customer is properly covered is at the core of our commitment.
You can contact us today to get to know more about our service and how we can help you with your Event Cancellation Insurance needs.