Whether it is a milestone celebration, a rock festival or hosting a fair, every event costs money. And if that event suddenly has to be cancelled or interrupted, it is not just frustrating but also puts the budget at risk. During the last few months many companies suffered because of the pandemic. With event failure insurance, event coordinators have a handle of their finances despite the risk.
The budget is set, the preparations are in full swing – and then, on the big day, the unexpected happens, and suddenly the event has to be cancelled, interrupted or postponed. There are many risks of a last-minute catastrophe, as Angelika Seebohm, Head of Funk Affinity, explains. ‘Severe thunderstorms, constant rain and flooding in particular often throw a spanner in the works. Events are also put at risk by aerial bomb disposals, strikes in the air and rail travel sectors, technical defects with the venues and the illness or death of a key person.’ The risks of communicable diseases and related official orders are currently no longer insurable.
Arranging cover as early as possible
The financial consequences of a postponed event can place significant pressure on companies. After all, they still have to pay for booked services or cough up high cancellation fees. Whether they use them or not, companies still end up with invoices for hiring the venue, accommodation as well as wages for catering and security personnel. ‘Event coordinators and finance managers should consider the risks and transfer options even as they plan the event,’ says Angelika Seebohm.
Event failure insurance protects you from the financial consequences that may arise when your event is cancelled, terminated prematurely or postponed as a result of certain incidents. Seebohm: ‘We devise tailored solutions for our clients and protect their budget. Having a detailed plan of action, for example, is important for open air events. After all, if something special like fireworks is planned, it’s not only important to protect against risks like rain or adverse weather, but also to consider the wind factor.’ Premiums are based on the type and scope of the event and on the desired cover. And since insurance cover starts from the moment a policy is taken out, even the planning phase can be protected. Some risks are assessed based on the current situation, so cover should be arranged as early as possible. ‘Insurers offer protection against weather-related risks no later than two weeks before the day of the event, for example,’ says Seebohm.
The experts at Funk can find the right insurer for you, help devise the right policy, and are always there if a claim arises.