A thorough risk assessment and good contingency planning can help you keep your event on track in the face of many unexpected developments. Yet in a worst case scenario, you may have no choice but cancel your event. This is why it is vital to get comprehensive event cancellation insurance as part of your specialist event insurance policy.
In this post we will outline some common causes of event cancellations, along with the sort of contingency planning that could help you avoid an outright cancellation.
Preparing For Cancellations and Why Insurance Is Essential
It is important to plan the steps you will take should you need to cancel your event, for whatever reason.
You will need a means of:
- Notifying all delegates, along with the venue staff and your guests, that the event is not taking place.
- Investing in additional paid advertising, so as to ensure that your message is seen by as many people as possible.
- Refund some or all of the fees from attendees and sponsors.
- Reimburse certain travel or accommodation expenses for speakers.
Dedicated event cancellation insurance can cover you for all of these expenses, fee refunds and more. This is why it is essential to take out your insurance as early in your planning as possible.
Common Causes of Event Cancellations
Bad Weather
Many events are cancelled due to adverse weather conditions. High winds and heavy rains can cause real risks for outdoor and indoor events. Snow can seriously disrupt travel, and flooding can jeopardise even a sheltered indoor event.
You might plan for bad weather through having an alternative venue in mind to which you can relocate if necessary.
Yet bad weather is just one aspect of event planning that is genuinely beyond your control. This is why it is crucial to get the cover you need for unexpected ”events” that may coincide with the event you are running.
Non-Attendance and Cancellations
If one of your speakers pulls out, you may not have to cancel your event outright, but you may have to deal with a number of refund requests. However, if a keynote speaker pulls out, or if multiple speakers cancel at once, and if you cannot find replacements then you may have no choice but to cancel or reduce the content delivered.
You can plan for this scenario through developing a list of alternative speakers you might reach out to if you need to fill a slot at short notice. You can also manage your delegates’ expectations with a disclaimer that your event’s programme is “liable to change”.
Yet if refunds or cancellations cannot be avoided, once again event cancellation insurance can cover you for any costs you may need to meet.
Venue Cancellations and Safety Issues
Your chosen venue may suddenly cancel your event, perhaps as a result of safety issues, of structural damages, or due to a scheduling conflict.
If you are not able to find an alternative venue in time, you will have to either reschedule your event or cancel it. Your event cancellation insurance can help mitigate the losses you may incur as a result of unexpected venue-related issues.
Other Unexpected Events
A range of additional unexpected events may compromise your event, which may make you consider cancelling:
- Road closures
- Building work
- Industrial action
- Terrorism
- Riots and public disorder
Such events are out of your hands, which can make risk assessments and contingency planning difficult. Event insurance can give you peace of mind that you will be covered for insured losses that will arise from such situations. Yet to avoid any unpleasant surprises, check your policy wording in advance to ensure that there are no exceptions to your cover that are of concern.
Get Specialist Event Insurance From James Hallam
As we have seen, there are many situations that may force you to cancel your event, some of which are beyond your control. This is why dedicated event cancellation insurance is vital.
James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We can help you get the comprehensive event cancellation cover you need, to ensure you are fully covered for all contingencies with no risky gaps in your cover.