If you're planning an event, you're likely going to invest a considerable amount of time and money into the project. You want the event to go off without a hitch. Unfortunately, not everything always goes according to plan. If you have to cancel your event, you may lose considerable amounts of investment.
When cancelling events, affected parties may be able to recover some of the lost costs. One option available to many event planners is event cancellation insurance.
Coverage Available Under Event Cancellation Coverage
Cancellations can often be stressful and financially taxing. Event cancellation insurance policies can help affected parties better cope with costs from the termination. Policies might cover:
- Business events or corporate functions
- Non-profit events
- Retirement parties
- Anniversary parties
- Baby showers
Depending on the event, coverage will likely vary. However, many policies come with similar coverage elements because of common cancellation risks. These may include:
- Coverage for vendor cancellation or no-shows, including lost deposits
- Special property, attire or jewelry loss coverage
- Loss of deposits protection
- Protection for gifts, possessions or other personal property losses
One interesting factor about cancellation insurance is that it may help prevent cancellations. Certain policies provide funds to help policyholders reschedule the event. Insurers might allow this coverage because postponing the event can actually lead to fewer cost burdens than a full cancellation.
What Cancellation Coverage Doesn't Cover
Event cancellation coverage won't cover every type of event or cancellation.
First, most policies will not cover a simple change of heart. For example, if an insured party decides to cancel their wedding, they may still be on the line for costs that arise from cancelling.
Additionally, not every event is insurable under special events coverage. Policies may not cover:
- Events with large numbers of guests. Most policies stipulate a guest limit on coverage.
- Sporting events
- Certain trade shows, conventions or other gatherings
Policies might exclude certain events because of the comparative risk they pose. Specialty events may need unique coverage to better address their own risks. For example, sporting events often have coverage under specialized sports insurance policies.
Furthermore, remember that special event insurance policies often come with maximum limits. If an insured party reports losses that exceed these limits, they may still face costs. Event planners should talk to their insurance agent about the best way to set appropriate limits.
Need coverage? Call Fulton Agency, Inc. at (954) 752-8610 or contact us online for more information on event cancellation coverage.