Risk management: Event Cancellation Insurance

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Rosie
Rosie Bugarin, CMP, Senior Vice President, Conferences & Conventions

Your association’s conference is just around the corner. Event arrangements are in place with a year’s worth of planning coming to fruition.

And then you get the dreaded news – a major snowstorm is looming, or a tropical storm is rapidly turning into a hurricane in which your conference is smack in its projected path, or a labor strike has affected major airports that will impact travel for the conference participants.

When an unavoidable disruption to an event occurs, myriad decisions and arrangements must be made. Will the event need to be cancelled? Should it be postponed or relocated? Should the event go on despite suffering significant loss of participants or key speakers?

Whether this disruption results in a financial loss or comfort in knowing that your organization will receive compensation depends on whether the event is covered by Event Cancellation Insurance.

An association’s annual conference is a major piece of the financial pie. Any event with a significant financial impact to the association should include Event Cancellation Insurance as part of the association’s risk-management strategy.

Event Cancellation Insurance covers a financial loss sustained as a result of the event’s cancellation, abandonment, curtailment, rescheduling or relocation due to circumstances beyond your control. These circumstances include adverse weather, labor disputes, reduced attendance, earthquakes, non-appearance of a speaker, terrorism and venue damage.

Depending on the policy, insurance reimbursement can cover revenues, expenses and reduced attendance for a continued event.

Meeting professionals can assist your association by exploring resources that are available to help avoid risks as well as navigate you through the process should a disruption occur.”

By covering revenues received, this is protection for the association’s participants and stakeholders (including sponsors and exhibitors) as well as the association. Coverage should be purchased as soon as a venue’s contract is signed since liability begins from that moment.

Meeting professionals can assist your association by exploring resources that are available to help avoid risks as well as navigate you through the process should a disruption occur.

Managing a major disruption to an event is never easy, but your leadership can rest easy knowing that protective measures were taken through Event Cancellation Insurance coverage.