As an event planner, you put a lot of time and effort into preparing a quality experience for your client. There are multiple variables involved to ensure that the event turns out to be a success. While you may be on the same page with other key decision-makers, what happens if an unexpected emergency occurs at the last minute and you have to postpone the event or cancel it outright? The financial consequences could be severe.
Event cancellation coverage acts as a safety net if an emergency that causes the scheduled event to be postponed or canceled. The policy protects event planners, sponsors, and key decision-makers involved in the event. Besides, many event planners opt to purchase cancellation coverage over a year in advance.
Event cancellation policies cover multiple types of losses. You may opt for the policy to cover the costs and expenses associated with organizing the event. If the primary objective of the event was raising money, you can opt for gross revenue coverage. This ensures that the impacted parties will receive the projected profit had the event taken place as scheduled. Analysts point out that planners and sponsors of special conferences generally opt for costs and expenses coverage while policies for large sporting events and concerts include gross revenue coverage. Live concert insurance is especially important, as the music industry generates over a billion dollars a year in total revenue. When filing an event cancellation claim, make sure that you have all of the important documentation on hand. Your insurer will assess contracts, refunds, receipts, and other information before finalizing your claim. It’s recommended that you discuss the type of event you’re planning so that your insurer can help you find the appropriate coverage.
Canceling or postponing a big event is frustrating for everyone involved, especially people who paid money to attend the event. Natural disasters such as tornadoes and inclement weather are the most common causes of event cancellations. An important figure getting injured or being unable to attend are common reasons why some events are canceled or postponed. Terrorist threats are another common reason to cancel an event. Be aware that there are multiple types of endorsements that you can add to your live concert insurance policy to protect yourself in such situations.
If you’re organizing the event around the appearance of a significant figure and they don’t show up, the situation can quickly turn into a horrible nightmare. Luckily, you can add non-appearance coverage to your policy. This type of coverage also kicks in when you hire a vendor to perform a service and they don’t honor the agreement.
Other Things to Consider
Once the policy becomes effective, it may be difficult to cancel it. Also, most cancellation insurance premiums should be paid off before the policy starts. Generally, there are no refunds. It’s recommended that you outline the entire structure of the event while speaking with your agent. They can help you find the right coverage to protect you from start to finish. It’s also important to learn about potential exclusions such as losses caused by failed financial goals, payment defaults, withdrawals, and insolvency.
Consult with RMS Insurance Brokerage, LLC
Last-minute event cancellations or celebrity no-shows can be expensive, but having adequate insurance in place can help alleviate stress in such situations. Contact our experts here at RMS Insurance Brokerage, LLC before planning your next event so that we can help you find the right policy.