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On Cancellation Insurance for Your Event

May 3, 2024

There are a few forms of protection that you and your organization might be considering if you’re planning an upcoming event, and one of the most notable here is insurance. One particular form of insurance that many event planners consider is known as event cancellation insurance – what exactly is this, should you purchase it, and what should you be thinking about if you do?

At In The Event, we’re proud to assist clients around Utah with the very best event planners in the state, helping with everything from event management to event rentals and more. What exactly is event cancellation insurance, what are some reasons you might consider it for an upcoming event, and which key elements should you be paying attention to if you decide to move forward with such a purchase? Let’s have a look.

What is Event Cancellation Insurance?

As the name suggests, event cancellation insurance is a specific type of insurance policy designed to protect you in case your upcoming event needs to be cancelled for any reason. This could include everything from severe weather or natural disasters to unexpected financial issues or even the sudden loss of key personnel involved in planning or executing the event.

It’s important to note that in most cases, event cancellation insurance will not be “comprehensive” in the same ways as other insurance policies you might be familiar with. For example, it won’t cover general liability and personal injury claims – these are usually covered by separate policies. Instead, the coverage here will relate directly to any financial losses you may incur as a result of event cancellation.

Types of Event Cancellation Insurance

Broadly speaking, there are two kinds of event cancellation insurance coverage (though some policies may include both):

  • Physical inability coverage: This form of insurance will cover you in case the event is cancelled due to physical concerns. These can include facilities that are no longer safe or operational, disasters that cause the event to be impossible, or any other physical barriers that prevent the event from taking place.
  • Legal inability coverage: This form of coverage refers to any kind of legal blockage of the vent, such as an ordinance restriction or a violation of laws. These are common in cases where the event is cancelled due to unforeseen legal issues.

Reasons to Consider Event Cancellation Insurance

One of the biggest reasons many event planners consider purchasing this form of insurance is peace of mind. While no one wants to think about their event being cancelled, it’s important to be prepared for any unforeseen circumstances that could arise. With event cancellation insurance, you can rest easy knowing that your investment in the event is protected.

Another reason to consider this type of insurance is if your event has a high risk of cancellation due to external factors. For example, if you’re planning an outdoor event during hurricane season or in an area prone to inclement weather, event cancellation insurance may be a smart choice to protect against potential losses.

Key Elements of Event Cancellation Insurance

When considering purchasing event cancellation insurance, there are a few key elements you should pay attention to:

  • Well in advance: From a timing perspective, it’s important to purchase event cancellation insurance well in advance of the event date. This will ensure that you have proper coverage in place in case of any last-minute issues.
  • Coverage limits: Be sure to carefully review the coverage limits and make sure they align with the projected costs of your event. You may also want to consider purchasing additional coverage if necessary.
  • Exclusions: As with any insurance policy, it’s important to carefully review the exclusions and make sure you understand what is covered and what isn’t.
  • Cost: Event cancellation insurance can vary in cost depending on the type of event and coverage needed. Be sure to compare quotes from different providers to find the best option for your specific event.
  • Important cutoff dates: Be aware of any important cutoff dates for submission of claims or changes to the policy. These may vary between providers, so be sure to clarify this before purchasing.
  • Additional contractors: If you are working with third-party contractors for your event, make sure they have their own insurance coverage in case of any cancellations on their end.

Overall, event cancellation insurance can provide valuable protection and peace of mind for event planners. Consider factors such as the type of event, the potential risks involved, and the projected costs before making a decision on whether to purchase this form of insurance for your upcoming event. Remember to carefully review the policy details and communicate with your insurance provider to ensure you have the proper coverage in place.

At In The Event, we understand the importance of protecting your investment and ensuring a successful event. That’s why we offer comprehensive event planning services, including advice on insurance options and risk management strategies. Contact us today to learn more about how we can help make your next event a success anywhere in Utah!

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