Event cancellation insurance or 'contingency' as its also known in the industry, is essentially providing cover for your net loss should the event(s) be cancelled, abandoned, postponed, interrupted, curtailed or relocated due to circumstances outside of your control.
New Zealand is now firmly on the global map as a destination for events, therefore the inherent risks associated with the industry are constantly changing. With New Zealand's climate also being quite varied, there may also be a number of reasons for event cancellation due to a weather-related event. Event organisers and others involved will need to consider those risks as they could vary greatly depending on the location and type of event.
While the majority of events go without a hitch, event/contingency insurance should be on your mind when planning your next event as there are many examples of cancellation or disruption. The 2018 ASB Classic in Auckland, highlighted the need to purchase a robust insurance policy specifically tailored to the geographical and event exposures. The cover was put in place to provide full protection for their ticket and catering revenue plus also cover their contractual obligations in respect of sponsorship and TV revenue. Tennis Auckland had a robust event cancellation policy equipped to provide protection for a global sporting event and the unpredictable Auckland weather.
Exposures such as Adverse Weather can cause extreme disruptions as can the lesser known peril of Terrorism. The cover is available for both however risks will be underwritten on their own individual merits. With the main exposures including irrecoverable costs and expenses, contractual obligations, tickets refunds and lost revenue, it pays to work with insurance experts who know your business and anticipate your needs as well as guiding you through the available coverage and advising you of any exclusions.
Event insurance is a niche area and whilst not all insurance companies or brokers will have access or expertise in this area, you can be confident that EventCover has both the knowledge and expertise to assist with your next event.