Cancellation insurance in high demand as events industry prepares for coronavirus threat
COVID-19, also known as the Coronavirus, has now been declared a Global Health Emergency.
At the time of writing, the outbreak has affected 29 countries around the world, resulting in 73,336 confirmed cases and 1,874 deaths.
The knock-on effects of novel communicable diseases such as coronavirus are far-reaching. Recent research has suggested that the disease could impact five million countries worldwide, and may even cause a recession.
Coronavirus scares have already led to the cancellation of many global events, from the world’s biggest phone show, Mobile World Congress, to international sporting events such as the Tokyo Marathon and Shanghai Grand Prix. And rightly so. Event organisers must always put the safety and wellbeing of their attendees first and foremost. But, in the case of Mobile World Congress, there remains a question as to whether organizers will be able to claim back lost costs on their insurance policy.
Event cancellation insurance can provide financial relief if an event is cancelled for reasons outside of the organizer’s control, whether a health concern like coronavirus, weather (one of the most common reasons for cancellation of outdoor events), threats of terrorism or non-appearance of key acts.
But, while most event organisers have a mandate to purchase special event liability insurance, many still consider event cancellation cover as optional, leaving a fairly significant exposure uncovered.
Live events, in general, have three primary exposures, as well as a growing concern over cyber. CFC recently announced a new event insurance package, designed specifically for events organisers looking to reduce exposures relating to cancellation and postponement. The policy combines cancellation coverage, special event liability, general liability and commercial property cover, enabling organisers to completely protect the financial investment of their event.
CFC is a pioneer in emerging risk. We offer a collection of policies ideal for events professionals, every one of which offers complete protection from a wide range of liability exposures. Find out more about our events insurance package, or get in touch for specialist advice from our team.