When organising an event, There are many issues that need to be controlled. No matter how conscientiously these steps are taken, there are many unforeseen events that can occur. That is why so many people subscribe to show cancellation insurance, The aim is to avoid a large financial loss in the event of such an occurrence.
How does event cancellation insurance work?
The purpose of this insurance is to enable the event organiser to protecting against economic losses you are faced with an unforeseen event. Such a problem should lead to the cancellation, postponement or total abandonment of the event.
What is covered by the event cancellation insurance?
As with any policy, you must specify a sum insured. This is the maximum capital that the company will pay to the insured.
The expenses that can be compensated are: “committed and irrecoverable expenditure”.”. If they were recoverable, there is no point in insuring them.
We are talking about, among others:
- Production costs.
- Disbursements such as rents, salaries...
- Advertising and sponsorship.
- Costs to save the event.
- Loss of profits generated.
How far in advance can the policy be taken out?
Depending on the company, some companies require more or less days in advance. The most common is 14 days (15-16) before the event.
It is more exceptional, but achievable, to find companies that will cover us as a limit. 10 days before before the show takes place, but this is becoming less and less frequent. That's why we recommend you to plan ahead and do it with enough time.
However, it is essential to have made a transfer to the company. What is known as “liquidate the premium”.” to the insurer.
How do I take out insurance?
Typically, companies will require, in order to budget for it, that fill in a questionnaire. It contains the essential data of the event. Among others:
- Dates and venue of the event
- Whether it is outdoors or not
- Type of event: sports, popular festivals, concerts or festivals...
- Coverage needed
- Amounts to be insured
This will make it possible to develop the budget, Once the client agrees, we proceed with the transfer of the premium amount in order to issue the insurance.
Types of events and shows that can be insured
They are many types of events where cancellation insurance can be taken out:
- Weddings: has been in vogue for some time now.
- Popular festivals: because the cost of orchestras and singers is very high.
- Concerts and music festivals.
- Sporting events.
- Congresses or conferences.
- Cotillions and parties.
For any event in which there is a significant outlay, as well as an expectation of significant benefits, it is possible to take out a policy that meets those needs. They range from large budgets to being able to insure even a «cotillion» or a wedding, as we can see.
Event cancellation insurance coverage
There are several coverages that can be subscribed through these policies. In other words, there are several causes that can trigger the cover:
- Force majeureThis guarantee covers a wide range of possibilities. In any case, what is extremely important is that the event that generates it must be beyond the control of the Insured.
- No-show o unavailability of persons: it is understood that key figures who are indispensable for the development of the activity (artist, sound manager, as examples).
- Adverse weatherwhen, due to weather conditions, the event cannot take place.
It is not necessary to subscribe to all these coverages. It is possible that due to the type of event in an enclosed location, weather cover is not essential.
How do you deal with a claim?
When we talk about the cancellation of an event, the proof of what happens, of what motivates the cancellation, is crucial.
Companies are very clear in their insurance conditions: photos, written reports, notification as soon as possible.
Depending on the case, different types of evidence are required.. For example:
- Due to weather: certificate of Meteorological Institutes
- Non-appearance of the artist due to illness: have a medical report
It is also possible that the Guardia Civil or local council staff will have to make a report; or have a photographic report...
In addition, contracts must be submitted to demonstrate the expenses with sponsors or with production, showing which expenses are not recoverable, and must be compensated.
It is very important to have a fluid communication with the company, which can help us to make decisions.
If you want to have a policy with good price and guarantees, contact us. From PIB Group Iberia we have experience in securing events, and we will help you in all those moments.
