Event Cancellation Insurance: Alright on the night? How to ensure big events hit the high notes
20 May 2020
Think about the best nights out in your life and there’s a high chance it involved a big event. Perhaps an outdoor concert in the desert or at a stadium with a big-name artist starring in front of tens of thousands of people. You remember the songs, the bright lights, the colours and the swathes of dancing, smiling concert goers. You remember that you, your friends and everyone else that attended had an incredible time and everyone went home happy.
But what happens when things don’t go to plan? How about when the lead singer develops a sore throat and calls off sick 40 minutes before showtime? Or when those bright lights catch fire? Or, as you may have seen in recent documentaries on TV, when the event promoters over-promise and fail to deliver on what people have paid good money for?
Long gone are the days when artists made substantial sums of money from records. The rise of streaming has put even more pressure on global tours to sell and sell well, with the biggest artists going to the furthest corners of the world to perform and scheduling in as many events on a tour as possible.
Event Cancellation is very much a necessity and not a luxury. The biggest concerts are high-profit but also high-risk, and while there’s money to be made, errors can wreck an entire. The total bill for event cancellation insurance can be quite expensive - typically 1 percent to 1.5 percent of the overall cost of an event. And with big concerts and music festivals costing up to USD100 million or even more, it’s a sizeable outlay.
From an insurance perspective, firms look to deal with a reputable promoter who has done concerts or festivals successfully in the past. After all, you want people remembering your event as one of the best nights of their life, not one of the worst.