Event Cancellation Insurance & Non-Appearance
Weather Insurance 

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From: EventInsuranceQuote.com

Event Cancellation Stamp - Event Cancellation Insurance - Weather Insurance

Event cancellation insurance does not cover losses caused by poor event planning, poor marketing, or lack of interest.

What is Event Cancellation Insurance? 

Event Cancellation Insurance provides coverage for the loss of revenue derived from OR expenses committed to an event due to a
cancellation, abandonment, interruption, curtailment, postponement or relocation caused by covered perils as defined in the policy as
covered perils.

What is the difference between Event General Liability Insurance and Event Cancellation Insurance?  

Special Event General Liability insurance coverage is required by venue or vendor contract and protects against 3rd party bodily injury or
property damage claims.  Event Cancellation Insurance is a specialty insurance coverage and is “elective” in nature, the premium is
determined based on the revenue or expense at risk, event type, dates and location of the event and scope of coverage required. 

What are the factors that influence pricing and breadth of event cancellation coverage offered?

  • Event Type (athletic event, concert, fair/festival, conference, consumer show, etc.)
  • Amount of Revenue or Expense relating to event
  • Dates of the event
  •  Location of the event
  •  Whether the event has an outdoor exposure or non‐appearance component

What are “typical” covered perils?

  • Adverse weather (example: Hurricane, Tornado, Snowstorm / Ice storm)
  • Natural catastrophe such as earthquake, flood, fire  
  • Labor disputes   (this is covered provided it isn’t  involving the insured or the insured’s employees)
  •  Acts of Terrorism  
  • Failure to vacate the event venue  
  •  Non‐appearance (the inability of performers,  teams, other individuals from appearing at your event)  

Adverse weather, earthquake, terrorism and non appearance are all available and rated/quoted accordingly. Other perils can be
covered at special request or accommodation (example: coverage for outbreaks of communicable disease)  

Non-Appearance Insurance:

If your event relies on the appearance of a person or group (performer, speaker, player, invited guest, team, etc.), this option will protect you from the non-appearance of that individual. Generally, including this option requires a medical exam of the specific individual.

 

What is not covered by Event Cancellation insurance?

  • Financial Insolvency  
  • Lack of Interest or Support
  • Fear of Travel   
  • War and Military Action
  •  Biological, Chemical, or Nuclear Hazards
  •  Pollution or Contamination
  •  Pre‐existing existing or threatened circumstances

What types of events are covered?

Almost any type of event can be covered with an event cancellation insurance policy. 

  • Athletic/Sporting Events
  • Concerts
  • Conventions, Conferences, Tradeshows
  • Consumer Shows (Boat Shows, Car Shows, Home/Garden Shows)
  • Corporate Events
  • Fairs, Carnivals, Festivals, Parades

Why and When is event cancellation coverage purchased?

Even the best planned event can face circumstances beyond its control.  These unforeseen and uncontrollable circumstances can force
cancellation, abandonment, postponement, interruption or relocation of the event (either in it’s entirely or partially). There are a
myriad of instances which could jeopardize an event and result in an event cancellation insurance claim.

Why? 

  • Protects significant revenue stream
  • Protects viability of an organization
  • Ensures continuity of event from year to year

When?

  • Typically at least 30 days before the event start date but no later than 15 days prior to the first event date.
  • Up to 3 years in advance as multiple years of coverage can be purchased up front

 

Event Cancellation Insurance - Weather Insurance

What is Weather Insurance?

A basic weather insurance policy is designed to protect against a financial loss caused by adverse weather. For example, you may be interested in getting rain insurance for events such as: Fairs. Festivals. Many events can be ruined by adverse weather. Whether you are planning a public event such as a fair or parade, or a private beach-side wedding, you may want to protect yourself against financial loss with weather insurance.

Can Weather Insurance Protect You from Loss?

A basic weather insurance policy is designed to protect against a financial loss caused by adverse weather. For example, you may be interested in getting rain insurance for events such as:

  • Fairs
  • Festivals
  • Parades
  • Weddings
  • Motorsport events
  • Golf tournaments
  • Film production
  • Trade shows
  • Conferences
  • Concerts
  • A seasonal attraction such as a winter carnival

Rain is typically the greatest concern for event hosts, but in some circumstances the trigger of coverage could be snow, fog, lightning, hail, wind or some combination of several different severe weather patterns.

Event rain insurance is normally structured to pay a claim if a certain amount of rain falls over a certain period of time. In other words, the rainfall does not necessarily have to be continuous. Or, a rain insurance policy can be structured to pay if rain occurs for a certain number of hours during a defined period, regardless of the actual amount of rainfall.

If you are planning a long term event, say a 30-day fair, you can expect some rain over that period and it would not make economic sense to try to insure against any rain. But it might be wise to purchase rain insurance against an amount of rainfall that exceeds the average for your location and time of year.

How Is Weather Monitored to Establish a Claim?

There are three methods by which you can monitor weather to establish a claim:

  1. If the location of an event is near a national weather station, then data from that station can used.
  2. If there is no national weather station nearby, then you can hire an independent weather observer. This person must apply to and be approved by the insurance company.
  3. If you don’t want to pay an independent weather observer, it is possible to obtain data from the nearest weather command, with the insurance company’s approval. For a flat one-time fee, experts at the weather command will supply data for a specific location.

If you are planning an event and have a concern about weather risks, you need to give some thought to how severe an occurrence would need to be to cause you significant loss. Would it take just a brief shower or would it take a sustained rainfall to cause your event to be cancelled or curtailed?

Also, you need to consider the time during which rain would fall that could lead to a loss. For example, rain during the hour before an outdoor concert could have a significant affect on revenue but rain falling during the last hour of the concert may not.

Definitions used in Rain Insurance

1/100 Inch of Rain – 0.01″
A light shower for 2-5 minutes or a drizzle for 2 hours. This would not leave puddles on the ground and would slightly wet the surface.
1/4 Inch of Rain – 0.25″
A light rain for 2-3 hours, moderate rain for 30-60 minutes or heavy rain for 15 minutes. Many puddles on the ground that do not disappear easily.
3/4 Inch of Rain – 0.75″
Heavy rain for 2-4 hours. Deep standing water for long periods of time (a light or moderate rain never reaches this amount).
1/10 Inch of Rain – 0.10″
A light rain for 30-40 minutes, moderate rain for 10 minutes or heavy rain for 5 minutes. Small puddles would form but usually disappear after a short while.
1/2 Inch of Rain – 0.50″
Moderate rain for 1-2 hours or heavy rain for 30-45 minutes. Deep standing water for long periods of time (a light rain never reaches this amount).
1 Inch of Rain – 1.00″
Heavy rain for several hours (2-5 hours). Deep standing water for long periods of time (a light or moderate rain never reaches this amount)

What Information Do I Need for a Quote?

If you are seeking a weather insurance quote, be prepared to supply the following information:

  • The nature of the event
  • The location of the event
  • The amount of coverage you want
  • The weather concern you want to insure against
  • The definition of loss you want to use (such as inches of rain or mph of wind)
  • The amount of time over which you want the policy to cover