What financial risks should you consider when purchasing event insurance policies?

1 Cancellation and postponement

One of the most common and costly risks that event producers face is the possibility of having to cancel or postpone an event due to unforeseen circumstances, such as weather, health, safety, legal, or logistical issues. Cancellation and postponement insurance can help you recover some or all of the expenses that you have already incurred or committed to, such as venue fees, vendor deposits, marketing costs, and staff salaries. However, you should be aware of the exclusions and limitations of this type of policy, such as the causes of cancellation or postponement that are covered, the amount and timing of the reimbursement, and the notice period required to make a claim.

3 Public liability and personal injury

Another common risk that event producers face is the possibility of being sued or held liable for any injury or damage that may occur to the attendees, staff, vendors, or third parties as a result of the event, such as accidents, falls, food poisoning, or property damage. Public liability and personal injury insurance can help you cover the legal fees, settlements, or judgments that you may have to pay, as well as the medical expenses or compensation that you may have to provide. However, you should be aware of the coverage limits and exclusions of this type of policy, such as the types and amounts of claims that are covered, the geographical scope and duration of the coverage, and the risk management practices that are required.

4 Event non-appearance and abandonment

Another common risk that event producers face is the possibility of having to deal with the non-appearance or abandonment of a key person or performer that is essential for the success of the event, such as a speaker, artist, celebrity, or sponsor. Event non-appearance and abandonment insurance can help you cover the losses or expenses that you may incur as a result of the no-show or withdrawal of the key person or performer, such as refunds, rescheduling costs, or reputational damage. However, you should be aware of the reasons and conditions of the non-appearance or abandonment that are covered, such as illness, injury, death, travel disruption, or contractual breach, and the documentation and verification that are required.

5 Event terrorism and civil unrest

Another common risk that event producers face is the possibility of having to cancel, postpone, or relocate an event due to the threat or occurrence of terrorism or civil unrest, such as bombings, shootings, riots, or protests. Event terrorism and civil unrest insurance can help you cover the losses or expenses that you may incur as a result of the disruption or cancellation of the event, such as venue fees, vendor deposits, security costs, or relocation costs. However, you should be aware of the definitions and scenarios of terrorism and civil unrest that are covered, such as the level and source of the threat or attack, the proximity and timing of the incident, and the official declarations or warnings that are issued.

6 Event cyber and data breach

Another common risk that event producers face is the possibility of having to deal with a cyberattack or data breach that may affect the online or digital aspects of the event, such as registration, ticketing, streaming, or communication. Event cyber and data breach insurance can help you cover the losses or expenses that you may incur as a result of the cyberattack or data breach, such as recovery costs, ransom payments, legal fees, fines, or notification costs. However, you should be aware of the types and sources of the cyberattack or data breach that are covered, such as hacking, phishing, malware, or human error, and the security standards and protocols that are expected.