The past few years have taught us one thing, which is life is unpredictable and there will always be incidents that will surprise us, for good and sadly for the bad too. When one faces these kinds of negative surprises it can ruin plans and future events. These incidents can be anything from weather, cancellations to a worldwide pandemic. A small incident can have a large growing effect on special events and the event industry. Events are something that people quickly save on their calendar and look forward to it all week, months or even years. The event planner spends a large budget to meet the expectations of the public that will attend. The events could be anything ranging from a wedding, concert, trade shows to worldwide known sports competitions. An event not going as planned can cause a large amount of damage, mainly financial.
Due to the worldwide pandemic, there were thousands of events cancelled and billions of dollars in loss. Although there was also an awareness of Event insurance. Many companies and individuals are more interested in making sure they have event insurance before anything is planned. Event insurance is something that will keep growing through the years and this article will explain why it is needed for every event.
What is Event Insurance?
Picture this, there are thousands of people who have just purchased tickets for a massive concert hosted by your business, the arena is booked, the bands are paid and a large amount is invested, just to satisfy all guests. A few days before the bands have cancelled or the government has demanded to cancel all events due to the national mourning (under conditions). Any of these incidents will result in a large loss and angry customers. This is why every growing plan needs event insurance which reduces the risk of financial loss and also advantaged their customers too.
Event insurance can be customised specifically to different types of events. Events ranging from a simple corporate company party to large public concerts or exhibitions. Purchasing event insurance can help protect you against any risks associated with hosting your function. Event insurance covers a range of risks that could affect the event or an accident that occurs during the event.
Top Reasons to get Event Insurance
Events can be great fun and interactive, but also could be followed by danger and injuries. It is very common to have serious injuries during events with a large group of public. This can be caused by the audience, the location of the event and many more reasons that can’t be predicted. The host is responsible for all these accidental injuries and the cost of medical care.
This is when the main aspect of event insurance becomes an advantage, which is public liability. When one purchases event insurance they are instantly provided public liability for that event too. Public liability cover is important in this situation and will pay if your event is found liable for bodily injury, property damage, wrongful arrest, interference or obstruction. This will provide the host coverage for all the accidents that have occurred due to the event. Therefore public liability provides the host with the motivation to host the best events, rather than fear accidents or damages.
Most events are full of expensive types of equipment that is either rented or owned by the host. These equipments are crucial to the event and are needed for the event to be successful but are very expensive to rent and buy. They range from music equipment, decoration equipment, seating equipment and much more. A lot like accidental injuries, equipment damage can be a common risk due to the number of people at the event and also depends on the location of the event. For example musical festival events, there is a lot of expensive sound equipment that can be damaged by spilt drinks or accidental drops from a height.
This is another risk that may be covered with event insurance. The insurance covers any damage on material owned or rented by the organisation. Therefore the insurance will provide the sum of money needed to repair or replace. Event insurance will also provide a financial value on theft that may occur too. Although event insurance will not cover damages caused by rain at an outdoor event. Event equipment cover provides comfort to the business or host – to know the expensive equipment that may be hired on owned is covered to any damage cause or stolen is covered.
Many situations can surprise the host and result in cancellation. It has become a very common result in recent years. These surprises could include: the main artist has cancelled for uncontrolled reasons, the main photographer can’t attend, weather or even natural disaster (under conditions). Every year many weddings, competitions and business events have been cancelled due to these reasons. This results in the host being at loss, as they will have to still lose their deposit, return money to the customers and much more.
An Event Insurance policy will provide coverage if an event is cancelled for reasons beyond the businesses/hosts control, the insurance will cover reimburses for irrecoverable expenses that have been pre-paid. All though some exclusion may not cover the cancelled event. A popular exclusion that will not be covered is if that the act just doesn’t show up with no reason or refuses to perform, as this is in the businesses control and responsibility. The host/business needs to understand what the event insurance will cover and work the event around it to be risk-free. As no business wants to pay thousands of dollars just because of one exclusion they did not understand.
Rain, storms, typhoons!- are some of the worst things to hear before a big event as sudden weather change can ruin an event and the experience. As many attendees would not be able to make it to the event and ask for refunds. The weather could completely cancel the event, especially if the event is outdoors. It is another factor that is not in control of the host and can outcome in a sufficient financial loss once again.
Unpredictable weather can result in cancellations as mentioned. Event insurance will cover all cancellations cost and payments that have been made, but unfortunately not damages caused by the rain on an outdoor venue. This is the host’s responsibility to make sure no equipment is critically damaged by the rain. The insurer cannot take responsibility for a common accident that has a high chance during outdoor events.
Can I Get Covered For The Pandemic With Event Insurance?
The start of Covid-19 has been a curse to the event industry as thousands of events were cancelled and billions of dollars lost worldwide. Events such as the Olympics, European football competition, concerts and many more were cancelled in 2020 and would have resulted in insurers paying these companies billions of dollars. For example, UEFA took steps to postpone the scheduled 2020 European Football Championship to 2021. A report recorded the move cost UEFA an estimated 300 million euros, on the other hand cancelling the event entirely would have cost the federation around 400 million euros.
At the same time, covid has a large impact on the insurance industry too, where many insurers in early 2020 had to pay these businesses for cancelled events and had cost them millions, as more and more events were cancelled due to the pandemic.
Event Insurance will not cover pandemic cancellations. Over time the worldwide pandemic showed insurance companies that there is an increasing chance of events being cancelled by Covid. It also proved that there were higher risks of the pandemic spreading during these events, hence being cancelled. As an insurance company, it is not wise to cover such high risks, as it would promote irresponsibility in the event industry during covid times.
The chart on the right shows data of the world regarding event cancellations due to COVID-19. As illustrated events are getting cancelled or recommended to be cancelled all over the world. Proving that a cancelled event due to covid would be an unreasonable risk to handle for an insurance company.
Outcome Of Having Event Insurance
There are many benefits of having event insurance, as explained above they cover a large number of factors that could affect the event. When the insurance is used, it has an amazing outcome for the host and the business. One of these advantages is that the event insurance will reimburse the host for all the financial loss that they may have, due to one of the above tragic situations. This money can help the company pay off all the rented equipment, repair equipment and also pay back customers who have been demanding a refund due to cancellation.
Confidence to Reschedule
Another outcome that benefits the host is: the covered money paid by the event insurance allows the host to try to reschedule the event. Rescheduling events is important for a business and for personal events too. As the event can be crucial to the public and needs to be rescheduled to help the company gain profit or celebrate a wonderful situation for a personal event. Event insurance helps give confidence and hope for the future.
Peace of Mind
It is impossible to predict the unpredictable. That is why if anything unavoidable happens during an event, it always feels great to know you have coverage available to protect you. Event Insurance offers the host peace of mind. It allows the host to prepare for the events to the best quality and not worry about the unpredictable risks.
Before you plan your event, It is best to consult with specialist insurance providers who understand your event and can help you pick the right kind of event insurance policy that fits the risk of your event.