Events can be unpredictable, with organisers and participants facing risks that are often beyond their control. From natural disasters and terrorism threats to the unexpected absence of key individuals, the potential for cancellation or abandonment of an event can lead to significant financial losses.
These losses may arise from various sources, including broadcasting revenue, ticket sales, merchandising, sponsorships, and irrecoverable venue costs.
Understanding the risks
Sports organisations must be aware of the various risks that can impact their events. Key considerations include:
- Natural disasters: Hurricanes, wildfires, lightning and other severe weather can disrupt events, leading to cancellations.
- Public safety concerns: Acts of terrorism or civil commotion can pose significant threats.
- Health crises: The COVID-19 pandemic highlighted the importance of coverage for communicable diseases, with Marsh negotiating $1.5 billion in claims — 30% of all pandemic-related claims settled by brokers.
- Unexpected incidents: Events such as the postponement of the Formula 1 Brazilian Grand Prix due to a deluge of rain demonstrates the need for robust and broadly worded insurance solutions.
- Cyber risks: Cyber hacks or critical commuter system failure can disrupt the infrastructure that surrounds a sports event leading to a loss of revenue or additional costs.
Who can benefit?
Cancellation insurance is designed for anyone with a financial interest in the successful execution of an event, including:
- Event owners
- Event organisers
- Promoters
- Exhibitors
- Sponsors
- Venue owners
- Merchandisers
How you can safeguard your event
As a sports organisation, you face unique challenges that can impact the success of your events.
Understanding these challenges is crucial for ensuring that you are adequately protected. Tailored insurance solutions can help you navigate the complexities of event management, from planning to execution.
Marsh will analyse your contractual liabilities, operational responsibilities, and your exposure environment to design a bespoke policy wording, leveraging the best price in the market through insurance facilities that offer broader coverage than standard policies.
Key features of comprehensive insurance coverage include:
- Protection against cancellation, abandonment, relocation, curtailment, postponement, and interruption of an insured event due to any peril which is beyond your control and is not otherwise excluded from the policy.
- Additional coverage options for:
- Individual or group non-appearance
- Acts and threats of terrorism or active shooter
- National mourning (declared or otherwise)
- Adverse weather
- Civil commotion, riots, and strikes
- Cyber risks*
- Communicable diseases*
- Enforced reduced attendance
*Available through a separate market solution.
Next steps
In an industry where unpredictability is the norm, safeguarding your event is essential.
By understanding the risks and ensuring you have tailored insurance solutions in place, you can protect your investment and maintain peace of mind.
We encourage you to explore how our cancellation insurance can serve as a valuable resource for you and your stakeholders.
For more information on event cancellation insurance, please contact Oli Plummer Oli.Plummer@marsh.com or your dedicated Marsh adviser.
