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Hong Kong is an exciting city that never disappoints. There is always something to do and look forward to, regardless of your interests. One of the main reasons for this charm is the variety of events in Hong Kong.

There are constantly new events in Hong Kong for various target audiences and occasions. In fact, the Hong Kong leader announced there will be 210 mega events this year. These events include concerts, art shows, sports events, seminars, pop-up shops, carnivals, cultural events and many more.

Most events in Hong Kong are thrilling and never fail to attract an audience. However, there is one thing most Hong Kong events have in common – they are insured. Event insurance is crucial for events and helps cover unpredictable event risks.

Event insurance is a policy that financially covers most event risks that occur before or during the event. Risks can range from cancellations to injuries and worse. The insurance is not mandatory but has several reasons that make it critical for a Hong Kong event.

The article will highlight the key reasons every Hong Kong event needs event insurance.

Reasons Hong Kong Events Need Event Insurance

Sudden Typhoons

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As great as Hong Kong is, there is one thing that is always unpredictable – the weather. It may be bright and sunny in the morning, and a rain warning may be issued within hours. Inclement weather can ruin Hong Kong events, especially outdoor events.

In Hong Kong, typhoons and rain warnings are often only predicted a day or a few hours before. These predictions often fail to help event hosts, as events are typically planned and booked months in advance. The unpredictable weather makes it difficult to make last-minute changes.

High-level typhoons or rain warnings can force an event to be cancelled, resulting in refunds and a substantial financial loss. Fortunately, event insurance can be a lifesaver in these situations.

Event insurance will cover the financial loss related to weather cancellations. The insurance will reimburse the cost of refunds and lost deposits, helping hosts recover from cancellations and successfully re-plan the event if needed.

Injuries Occur All the Time

While hosting any form of Hong Kong event, hosts must ensure their guests and venue are safe. Hosting businesses are responsible for almost everything that occurs during the event. Hence, they will be liable for injuries and property damage.

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Injuries and property damage can occur at any event, from slip-and-fall accidents to equipment falling on the venue floor. These accidents can lead to lawsuits and reputation damage. The hosts will be responsible for compensating third parties whose property is damaged or who are injured.

The costs can accumulate to a large amount and disrupt the financial budget of the event and the business. Fortunately, event insurance provides public liability coverage for events in Hong Kong. This coverage will assist in covering legal, medical, repair, and compensation costs regarding third-party claims. Public liability coverage helps handle these unexpected situations and prevents financial damage.

Equipment Is Expensive to Repair or Replace

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Every event type has its unique set of equipment necessary for the event. For instance, a concert needs audio equipment, musical instruments, video equipment, stage material and more. Equipment can be expensive to purchase or rent and takes up a considerable amount of the event budget.

Unfortunately, there is always a chance equipment can be damaged or lost before or during the event. Repairing or replacing equipment can be extremely expensive, ruining the event budget and profit.

The damage or loss could occur due to handling, attendee incidents or theft. One of the critical reasons Hong Kong events need event insurance is the equipment damage cover. The equipment coverage will cover repair or replacement costs due to unavoidable damage or loss.

The hosting company must provide the event insurance company with a clear list of all the equipment the event will use. Additionally, the insurance may not cover any damage to equipment that could have easily been avoided– for example, rain damage for an outdoor event.

No-Shows Lead to Expensive Refunds

Many events focus on the appearance of a celebrity, group, speaker or specific business (vendor). When the main focus does not attend or cancels, it leads to disastrous situations and an unsuccessful event if it is not handled well. 

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These events could be concerts, industry seminars or even sports games. Recently, Hong Kong event hosts faced a huge backlash when they promoted a football game around the world-famous player Lionel Messi. Thousands of fans were disappointed and angry when Messi did not even step on the field. They lost sponsorships and had to refund tickets.

Numerous no-show cases have resulted in expensive refunds and reputation damage. Fortunately, event insurance will cover the costs related to no-show cancellations. However, there needs to be clear communication about who is considered a key event member.

Event insurance will not cover the cancellation or refunds without documented agreement on no-show details and coverage.

Peace Of Mind

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Hosting Hong Kong events is stressful; there are countless details and factors a hosting business must manage and execute. There is a high expectation for events to flow smoothly, especially when it is a paid event.

There is a lot that can go wrong, and hosting businesses must focus on being safe and productive. However, one can’t stress every stage about event risks that hosts can’t control.

A great reason to purchase event insurance is the peace of mind. The insurance coverage gives the hosts the feeling that insurance will cover most event risks. Hosts do not have to worry about uncontrollable risks and can focus on the controllable factors that matter.

Although, event organisers should understand all the policy details, including the coverage and exclusions.

What Types of Hong Kong Events Require Event Insurance?

All types of Hong Kong events can face risks that lead to disasters and hefty bills. Event insurance is one of the only things that can help reduce the damage and move on. Insurance providers can customise the insurance policy and limit to fit different events and their specific risks.

Regardless of the size or purpose of the event, insurance is a must. The hosting business should ideally buy at least two months before the event to get better and more accurate coverage. However, for smaller events, hosts may be able to purchase the policy a few weeks before.

Event insurance is the perfect risk management that can assist in executing a successful Hong Kong event.

 

 

To Learn More about event insurance and get the best coverage for Hong Kong events, contact Red Asia Insurance.