Contingency, Cancellation & Prize Indemnity

EVENT CANCELLATION COVERAGE

EVENT CANCELLATION AND NON-APPEARANCE INSURANCE

A class of contingency insurance, Event Cancellation Insurance covers the loss of costs and expenses or revenues that result from the cancellation, abandonment, postponement, interruption or relocation of an event (in whole or in part) due to uncontrollable circumstances.

WHY YOUR CLIENTS NEED EVENT CANCELLATION INSURANCE

The insurance of an organization’s physical assets against risk is considered to be essential for any well-run business. Event risks typically fall outside more easily recognized insurance covers, yet coverage for events has just as an acute effect on the balance sheet as that of any other standard coverage. Considering the time and money it takes to plan an event, the risks to your client’s bottom line are substantial. When disaster strikes, event cancellation insurance protects against the loss of costs and expenses or revenues for a small fraction of that exposure.

WHERE EVENT CANCELLATION BUSINESS CAN BE SOURCED

Event Cancellation accounts for roughly 80% of contingency insurance business. There are numerous target markets where opportunities can be sourced — whether it’s within your existing book of business, or new ones. Potential client groups include:

  • Event planners (weddings, bar mitzvahs, confirmations, birthdays, anniversaries)
  • Event organizers (including advertising/marketing agencies)
  • Event promoters
  • Event service providers (caterers, audio visual, etc.)
  • Event venues (sports facilities, hotels, conference/exhibition centers, theatres, etc.)
  • Event sponsors
  • In-house corporate event planners/marketing personnel (golf days, trade shows, conferences, dinners, etc.)
  • Magazines/Specialist event publications
  • Tourist offices
  • Trade and other Associations
  • Charities
  • Sports Federations/Associations
  • Ticket vendors
  • Religious groups
  • Schools/Colleges
WHAT EVENT CANCELLATION INSURANCE COVERS

Coverage is provided for the following perils:

  • Inclement Weather
  • Natural catastrophe such as earthquake, flood, fire
  • Extra expenses
  • Power failure
  • TV transmission failure*
  • Public transport failure or denial of access
  • Failure to vacate the event venue
  • Strike risks
  • Terrorism or threat of terrorism
  • The inability of any person(s) to appear at your event e.g. speakers, teams or performers

*Communication with Underwriters may be required for certain scenarios that fall outside of standard risk parameters.

WHAT EVENT CANCELLATION INSURANCE DOES NOT COVER

There are certain exclusions for event cancellation coverage. The principal exclusions are:

  • Financial failure, insolvency or default; support or withdrawal of support by any party
  • Lack of sales, response or attendance
  • Variations in exchange rates or currency stability
  • Radioactive contamination
  • Use of pathogenic or poisonous biological or chemical materials**
  • War and civil commotion**
  • National mourning**
  • Communicable diseases**

**For some exclusions an extension is available for purchase through communications with Underwriters. Examples of extensions available include: enforced reduced attendance, catastrophe non-appearance, governmental intervention extension, national mourning extension, family extension, deductible or first loss options, uncovered stage extension and more.

CLAIMS EXAMPLES

No matter how well an event is planned for, uncontrollable circumstances exist which may potentially jeopardize event costs, expenses and revenues. Claim examples include:

ADVERSE Weather
  • Freak snowfall causes curtailment at exhibition
  • Gale force winds cause circus tent to collapse
  • Freak hailstorm causes cancellation of speedway event
  • Flooding causes grandstand seating to sink
  • Fog causes cancellation of ski event
FIRE DAMAGE
  • Fire destroyed exhibition centre
  • Forest fires cancel football match
STRUCTURE DAMAGE
  • Boat show curtailed following partial collapse of temporary pool structure
  • Roof collapse causes cancellation of motor show
  • Assembly of marquee structure is hindered causing delay in event opening
UTILITIES FAILURE
  • Power grid supply failure causes shut down of theatres
  • Water supply failure causes shut down of exhibition
  • Denial of Access to event location resulting from a gas leak
OTHER ANOMALIES
  • Performer attacked by audience member
  • Jet crash kills pop star resulting in cancellation of tour
  • Murder on 4th green causes Police to restrict access to golf course
  • Stage hydraulic failure cause the stage to collapse at rock concert
  • Sprinkler leakage causes flooding and damage to exhibits and venue

EVENTS AVAILABLE FOR COVERAGE

Over 100 different event types are available for coverage with no minimum premium requirements in the following categories:

  • Sporting events and competitions
  • Trade shows, conferences and lectures
  • Carnivals, Festivals and fairs
  • Film and TV premieres
  • Concerts and tours
  • Corporate functions and community events
  • Weddings, bar mitzvahs, christenings and memorials
  • Dozens of other events!

WEATHER INSURANCE

HOLE IN ONE

PRIZE INDEMNITY

prize indemnity, including:

  1. scratch and win,
  2. collect and win,
  3. leveraged sweepstakes,
  4. watch and win,
  5. probability games,
  6. sweepstake management,

PHYSICAL EVENT PRIZE INSURANCE

  1. baseball throw,
  2. basketball shot,
  3. crack the safe,
  4. hockey scoro,
  5. North American football kick,
  6. North American football throw,
  7. roll the dice,
  8. soccer kick.

OVER-REDEMPTION INSURANCE

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