Things have been chaotic and rough for players in the event industry due to the Covid-19 pandemic. There were thousands of event cancellations, and things are even yet to stabilize in the event industry even with event insurance. There’s rarely any sector of the event industry not affected by the pandemic; hotel and hospitality, tourism, concerts, outdoor festivals, and many more were all canceled.
According to reports, the concert industry alone is bound to lose about $9 billion to the pandemic. The books of everyone in the event industry is at a terrible state currently, and the question of who will pay for these losses is begging for answers.
For event entrepreneurs with event insurance policies, there’s a likelihood of recouping their losses. Event cancellation insurance insures event-related damages caused by cancellations beyond the policyholders’ control. It can either be a standalone form of insurance or as part of a comprehensive policy.
It is associated with disruptions, abandonment, rescheduling, or cancellations that are obviously out of the reach of the policyholders. It may also extend to issues around government orders, disease breakout, failure of public transportation, and other negative perils.
The financial loss that is covered by event cancellation insurance is a factor of the policy purchased. On the surface, it caters for
Event insurance may cover out of pocket expenses incurred on marketing, logistics, organization, and other costs.
The policy coverage may also extend to revenue and profits lost due to the cancellation of the event. A calculation of the net profit accruable if the event holds.
This is a factor of the language of the policy and when it was purchased. Morever, If the policy relates to any form of communicable disease, then you might be eligible for coverage. The definition of communicable disease is another important element of the chance of coverage.
As early as January, numerous insurance companies have included Covid-19 exclusions in their policies. Moreso, some insurers have scrapped event insurance in totality.