Event Cancellation Insurance

Event cancellation insurance covers the money an event organiser loses if an event is cancelled, abandoned, postponed or relocated because of something outside their control, such as the venue becoming unusable, authorities stopping the event, or severe weather where that cover is added.

It is separate from public liability. Public liability responds when someone is injured or their property is damaged. Cancellation cover responds when the event itself cannot go ahead as planned. Our event cancellation insurance guide covers how it is arranged and what sets the price.

How the Amount Insured Is Set

• Costs and expenses: the budget you would lose, such as venue hire, production, staging, artist fees and marketing. In our events specialist’s experience, this is the more common choice because it keeps the premium down.
• Gross revenue: costs plus the profit you expected to make. Larger events with strong ticket sales often insure on this basis.
• If the amount insured is lower than the real figure, some wordings reduce the claim in proportion, so the budget needs to be accurate.

What It Usually Does Not Cover

• Poor ticket sales or lack of interest
• The organiser’s own financial failure
• Communicable disease, which is generally excluded since COVID
• Terrorism, war and civil commotion, which vary by insurer and are sometimes available as an extension

Why It Matters

• In our events specialist’s experience, weather is a frequent cause of cancellation claims.
• Cover has to be bound and paid before the event, so it needs to be arranged early.
• The premium is priced against the amount insured, and the rate depends on the event, the site and the extensions chosen.