Why event organisers should insure against cancellation & disruption

Earlier this year, Ironman had to cancel the swim section of their race due to ‘wildlife’ sightings, causing concern for participants’ safety. Although it was not announced what the safety team saw, there was much speculation of a crocodile sighting – an understandable reason to not allow entry into the water. The event attracts hundreds of athletes and amateur competitors from all over the world, plus thousands of spectators, to the event in Colombo, Sri Lanka. 

The announcement, on the eve of the event, did more than disappoint the competitors who would have spent months or years preparing for this gruelling challenge. This unexpected change had the potential to cost the organisers a significant amount in reorganising the disrupted event.

Cancellation & disruption insurance is designed to cover the costs of or losses associated with amending, postponing or cancelling an event for reasons beyond the organisers’ control. Costs could include entry refunds, lost revenue, additional overheads such as staffing & equipment, communication costs, etc. If possible, the insurance will cover costs to make changes that will enable the event to continue, but in worst-case scenarios, the organisers can cancel the event without fear of financial ruin.

Other event cancellations/disruptions we have seen recently include:

• Insufficient availability of drinking water on a hot day
• High winds – make event structures dangerous
• Bird flu – restricting access
• Motorways closed following an accident – delaying key individuals trapped in traffic
• Extreme cold – making it dangerous for staff spending long periods outside
• Heavy snow – preventing access
• Local authority closing the venue
• Car parks – unusable due to heavy rain
• Flooding
• Theft of event equipment the day before the event
• A potentially violent political protest near the venue.

If you would like a quote to cover cancellation or disruption, please contact us. We will need to know:

• Dates of event
• Location of event
• Type of event
• Cost of putting on the event
• Total expected revenue from the event
• Has the event been held before
• Has the event ever been disrupted before?

As well as insuring against unforeseen disruption or cancellation, we can also provide insurance for things like public liability, employers’ liability, equipment, money and cyber liabilities for risks associated with online databases, ticket sales and communications.

Read more here about the cancellation of the IronMan Colombo event