Event insurance is rapidly gaining popularity and over the past five years, the market in our country has embraced this service quite easily.
What is event insurance?
Event insurance is most commonly used to insure an event against the risk of cancellation. One of the main and most popular risk factors for which events are prohibited is the performer’s illness or injury, bad weather, or other similar causes. Therefore, if the event does not take place, the organizer will be reimbursed for the losses incurred – non-refundable funds invested in the event.
Event Insurance in Business
Of course, poor weather conditions or injuries suffered by the performer are not the only risks that prevent events. Another rather relevant insurance is civil liability.
Event insurance can be extended. In addition to the main event insurance features, there are additional insurance extensions.
For example, equipment insurance. The scope of equipment insurance is quite wide. event insurance in business insures all equipment and decor used during the event: lighting, sound equipment.
Of course, there are quite a few and varied areas of insurance expansion. However, this is the civil liability of the organizer himself and the entrusted property is usually insured. There is also a ban on musical instruments, which insures musical instruments.
In addition, accidents are often insured, both for performers and for spectators.
It can be said that the organizer of an event can insure almost everything: weather conditions, property, health of participants, accidents, absence of key people, cancellation of the event or other contingencies. Therefore, event insurance in business is attractive.
In what cases do you need insurance?
Event insurance is required for the organization of each event, as it ensures the financial security of your company in the event of an insured event. Insurance is required to insure performers’ royalties and accidents.
True, the organizers of the event may wonder what criteria are used to select eligible companies. There are certainly not one of the criteria, but when it comes to filling out an insurance application, it is clear whether the event is insurable. So it is advisable for the organizers to just look into the insurance options for the event. However, it is very difficult to identify the criteria for banning events.
Event insurance forbids all kinds of events, but when you start deepening, the nuances that can be insured or not become clearer. The company’s budget, on which the extent and scope of insurance depends, is also relevant when submitting an insurance offer. The Insurer asks questions to evaluate the capabilities of the company, the organizer of the event: Details of the Insured, name of the event, duration, date, place where the event will take place, and number of spectators. The risk borne by the policyholder and the cost of the premium depend on these criteria, so after providing all the data, the insurance company calculates the insurance offer and presents it to the customer.
It will not be possible to insure against coronavirus?
It is unfortunate, but at the moment, in the face of a very high threat from COVID-19, the virus is marked as a non-prohibited event in the event ban. Thus, all damage related to this virus is uninsured. You probably won’t find a single insurer that would ban events precisely because of the threat of COVID-19 and the consequences of that virus, as that’s the path to insurer bankruptcy. Unfortunately, these trends also reduce the organizers’ own desire to ban events, or more precisely, to organize them.