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The past few years have taught us one thing: 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 minor incident can have a significant 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 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. However, there was also an awareness of Event insurance. Many companies and individuals are more interested in making sure they have event insurance before they plan anything. Event insurance will keep growing through the years, and this article will explain why businesses need it 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, your company books the arena, the bands are paid, and a large amount is invested in satisfying all guests. A few days before the bands have cancelled, the government demanded to cancel all events due to the national mourning (under conditions). Any of these incidents will result in a significant loss and angry customers. The negative impact is why every growing plan needs event insurance, which reduces the risk of financial loss and advantages their customers.

Insurers can customise event insurance 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


Public Liability

Events can be great fun and interactive, but also could be followed by danger and injuries. It is very common to have severe injuries during events with a large group of public. The threat can be caused by the people, location of the event and many more reasons that the host can’t predict. The host is responsible for all these accidental injuries and the cost of medical care.

In these situations, the main aspect of event insurance becomes an advantage, which is public liability. When one purchases event insurance, the event instantly is protected with public liability for that event. Public liability cover is essential in this situation and will pay if your event is found liable for bodily injury, property damage, wrongful arrest, interference or obstruction. In addition, this will provide the host coverage for all the accidents due to the event. Therefore public liability provides the host with the motivation to host the best events, rather than fear accidents or damages.

Equipment Damage

Most events are full of expensive types of equipment that is either rented or owned by the host. These types of equipment 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. Like accidental injuries, equipment damage can be an ordinary risk due to the number of people at the event and depends on the event’s location. For example, many expensive sound equipment in musical festival events can be damaged by spilt drinks or equipment accidental drops from a height.

Equipment damage is another risk that the insurer may cover 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. However, 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 is covered to any damage caused or stolen is covered.


Event Inusrance 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 leading 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. Cancellations result in the host being at a loss, as they will have to 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 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 the act doesn’t show up with no reason or refuses to perform, as this is in the business’s 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 company 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. The weather could altogether cancel the event, especially if the event is outdoors. It is another factor that is not in control of the host and can result in a sufficient financial loss.

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. In these situations, the host’s responsibility is to make sure the rain critically damages no equipment. 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 the government worldwide cancelled thousands of events and lost billions of dollars. Events such as the Olympics, European football competition, concerts, and many more were cancelled in 2020, resulting 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 would have cost the federation around 400 million euros.

Event Insurance cancelation

At the same time, covid has a significant 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 the pandemic cancelled more and more events due to the pandemic.

Event Insurance will not cover pandemic cancellations. Over time the worldwide pandemic showed insurance companies an increasing chance of events being cancelled by Covid. It also proved that there were higher risks of the pandemic spreading during these events. As an insurance company, it is not wise to cover such high risks. Furthermore, it can 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. They are proving that a cancelled event due to covid would be an unreasonable risk to handle for an insurance company.

Outcome Of Having Event Insurance 

Money Reimbursement

There are many benefits of having event insurance; as explained above, they cover many factors that could affect the event. In addition, when the host uses the insurance, it has a fantastic 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. In addition, this money can help the company pay off all the rented equipment, repair equipment, and payback customers demanding a refund due to cancellation.

Confidence to Reschedule

Another outcome that benefits the host is that the covered money paid by the event insurance allows the host to reschedule the event. Rescheduling events is essential for a business and for personal events too. The event can be crucial to the public and needs to be rescheduled by the host to help the company gain profit or celebrate an extraordinary situation for a personal event. Event insurance helps give confidence and hope for the future.

event InsurancePeace 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.

To learn more about Event Insurance and cover an event with no stress, contact Red Asia Insurance.

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