When organizing an event, a show, there are many issues to control. No matter how conscientiously these steps are taken, there are many unforeseen events that can occur. That is why so many show cancellation insurances are taken out, to avoid a great economic loss in case it happens.
How does event cancellation insurance work?
The purpose of this insurance is to protect the event organizer against financial losses in the event of an unforeseen event. This problem should lead to the cancellation, postponement or total abandonment of the event.
What is covered by the event cancellation insurance?
As in any policy, a sum insured must be specified. This is the maximum capital sum that the company will pay to the insured.
The expenses that can be indemnified are: “committed and non-recoverable expenses”.. If they were recoverable, there is no point in insuring them.
We are talking about, among others:
- Production costs.
- Disbursements such as rents, payroll…
- Advertising and sponsorship.
- Expenses to save the event.
- Loss of profits generated.
How far in advance can the policy be taken out?
It depends on the companies, some require more or less days in advance. The most usual is 14 days (15-16) before the celebration of the event.
It is more exceptional, but it is possible to find companies that will cover us 10 days before the show takes place, but this is less and less frequent. That is why we recommend you to be proactive and do it with enough time.
Of course, it is a prerequisite to have made a transfer to the company. This is known as “paying the premium” to the insurance company.
How is the insurance contracted?
Usually companies will require a questionnaire to be filled out in order to provide a quotation. The questionnaire gathers the essential data of the event. Among others:
- Dates and location of the event
- If it is outdoors or not
- Type of event: sporting event, popular festivals, concert or festival…
- Coverage required
- Amounts to be insured
With this, we are ready to prepare the estimate, and once the client agrees, we proceed with the transfer of the amount of the premium, in order to issue the insurance.
Types of events and shows that can be insured
There are many types of events for which cancellation insurance can be taken out:
- Weddings: it has been fashionable for some time now.
- Popular festivities: since 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 a significant profit expectation, 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 coverages
There are several coverages that can be underwritten through these policies. Rather, there are several causes that can activate the coverage:
- Force majeure: this guarantee covers multiple possibilities. In any case, what is very important is that the event that generates it must be beyond the control of the Insured Party.
- Non-appearance or unavailability of persons: it is understood that key figures who are indispensable for the development of the activity (artist, sound manager, as examples).
- Adverse weather: when the event cannot take place due to weather conditions.
It is not necessary to subscribe to all of these coverages. It is possible that due to the type of event in an enclosed location, weather coverage is not essential.
What are the actions to be taken in the event of a claim?
When we talk about the cancellation of an event, the proof of what happens, of what motivates the suspension, is fundamental.
Companies are very clear in their insurance conditions: photos, written reports, notification as soon as possible.
Depending on the case, different tests are required. For example:
- For climatology: certificate from Meteorological Institutes
- Non-appearance of the artist due to illness: medical report must be available.
It is also possible that the Guardia Civil or personnel of the City Council should make a report; or have a photographic report…
In addition, contracts must be presented showing the expenses with sponsors or with production, showing the expenses that 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 a policy with a good price and guarantees, contact us. From PIB Group Iberia we have experience in insuring events, and we will help you in all those moments.
