EVENT CANCELLATION policies are to cover a financial loss resulting from an event being cancelled, postponed, abandoned or curtailed due to an insured peril, which is outside of the control of the event organiser and the event participants and not excluded under the policy wording.
The Adverse Weather endorsement provides cover for outdoor events being cancelled due to adverse conditions as defined – this would mean storms, flooding, lightning, dangerous winds or any other weather peril which is deemed dangerous and threatens the safety of those attending the event.
Note that rainfall and wind alone may not be sufficient to trigger a claim under this type of policy, unless conditions are deemed dangerous.
The event cancellation policy will cover other perils such as;
- Damage to venue occurring during the period of insurance which renders the event locations unsuitable to stage the event
- Transport Strikes occurring within the period of insurance
- Terrorism or threat thereof
- Natural Disasters
- Travel delay of essential event equipment
- Non-appearance of key persons or performers due to death, accident, illness or travel delay – can be added by endorsement and subject to additional premises.
The basis of settlement in respect to a claim is either Gross Revenue (costs/expenses plus net profit) or Breakeven (costs/expenses only – net profit not insured). Your limit insured will need to represent the total value at risk as an underinsurance clause will apply if you are not fully insured.
The policy is an indemnity policy and will only reimburse the financial loss resulting from the event being cancelled, curtailed, abandoned or rescheduled.
Event Cancellation will NOT pay for shortfall in attendance or lack of ticket sales, insolvency or financial failure of the event. Other exclusions and conditions may apply.
Event Cancellation is usually taken out for a short-term period to cover a one-off event or series of events.
Click to fill in the EVENT CANCELLATION Proposal Form