We have seen major sporting, music and social events cancelled or postponed due to the global Coronavirus pandemic. Depending on the wording, Event Cancellation/Contingency policies will generally provide cover for financial loss due to perils beyond the control of the insured – when such perils result in the necessary cancellation, postponement, curtailment or abandonment of an event. Normally these include:
Key performer non-appearance
Policies can be structured across single or multiple events for:
Additional costs to ensure the event proceeds (where possible)
Cost & expenses
Loss of profit
Additional costs for future events
Many policies will pick up financial loss like lost ticket revenue, ticket refunds, and contractual guarantees to others. The insured is often required to mitigate its losses (i.e. by reasonably seeking to reschedule or postpone an event to a different time or venue), but the terms and conditions of each policy will vary.
Wordings include a ‘communicable disease’ or ‘epidemic’ exclusion. It is possible to extend policies to offer cover for these perils and this can be reviewed on a case-by-case basis and can prove expensive – existing known virus outbreaks would be excluded.
In the current climate, you might hope that the policy will respond where an event is cancelled.