Cancellation of Events
Protects stakeholder from loss of revenue for an event (e.g. concert, tour, etc.) cancelled due to adverse weather, earthquake, damage to venue, terrorist threats, communicable disease, etc. For example:
- Policyholder scheduled a three day beach festival that included numerous headlining bands, with expected crowds in the tens of thousands. A few weeks before the event there was a significant storm that washed out 50% of the beach and also affected the structural integrity of the adjacent boardwalk, deeming it unsafe for the expected crowd. Organizers, while working with the local government, had to initiate immediate efforts to reinforce the boardwalk and truck in enough sand to make the location for the event safe for the general public. Additionally, because of the revised configuration, they lost 20% of their capacity. Insurance provided the coverage to restore the venue and cover the lost revenues (which were still significantly less than a full cancellation or cost to move to another location).
- Artist was due to perform a concert in the Middle East, flying from the US approximately 48 hours prior to showtime. Bad weather forced closure of the departure airport, but Artist’s management team was able to charter an alternative jet flying from an airport 2 hours drive south of the original departure airport, and away from the storm. The private charter cost $450,000 as compared to a potential insured loss of $2.5 million for Artist fees, so the additional costs were paid.
There are countless types of events and potential losses we can help provide protection for. If you don't see what you're looking for, or are unsure of the coverage options above, please contact us and we'll be happy to help you find the right solution!