Understanding the Event Insurance Policy
Understanding the Event Insurance Policy
Event insurance is a multifaceted line of coverage that can offer protection against a multiplicity of loss exposures. It can be part disability income insurance, part life insurance, part liability insurance, part accident insurance, and part property insurance. All of these types of insurance can be offered in one blanket policy which makes cancellation event insurance a value-for-money option.
One product, many uses.
Event cancellation insurance is in no way limited to the music or concert industry. Coverage can be prescribed for business conferences, incentive trips, professional speaking tours, seminars, and New Year's Eve parties. Even weddings can be insured.
Whenever there is a planned event with financial security deposits or revenue at risk, there is a good chance that event insurance can be acquired to protect against the possibility of financial loss. When it comes to protecting paychecks, especially for professionals who earn their living in unique ways, most life and health insurance producers would probably think in terms of life and disability insurance. But what if the proposed insured was a professional motivational speaker who commands a $30,000 performance fee? If this person could not perform his/her functions due to an illness, he/she would most likely forfeit the performance fee. If recovery from the illness required only a week or two, the 30-, 60- or 90-day elimination period for a traditional DI insurance policy would prevent the insured from receiving any financial benefits. Event cancellation insurance offers a possible immediate benefit for the lost performance. Often, this is a more effective and cost-efficient approach for people who earn their living this way.
Typical coverage:
Coverage extends not only to total cancellation of an event but also to curtailment, postponement, or relocation of the event to another venue. Perils that are covered can include weather-related disasters, work stoppages and strikes, and even terrorism. (Poor planning, low attendance due to lack of interest, or losses resulting from war or nuclear, biological, and chemical attacks are excluded.)
In addition to protecting an event's revenue, the insurer may also cover extra expenses an insured might incur to prevent a cancellation or minimize the impact of loss. If the event must be postponed or rescheduled, the insurer often will include additional coverage for marketing expenses associated with advertising the revised event date to attendees.
When is a blanket policy worth considering?
If an organization holds more than one event a year, it should consider purchasing a blanket policy rather than buying insurance one event at a time. For example, the XYZ organization, which holds shows in April and October, buys coverage for both events under the same policy. There are several advantages to this option. but before that, find out about insurance quotes australia. Also make sure to visit Buy AIA Life Insurance.
1. Most insurers will automatically provide, for no additional charge, coverage for indoor events that earn less than $50,000 in revenue. In the case of the XYZ organization, any indoor events from April through October are automatically covered.
2. A blanket policy can reduce the cost of insurance premiums. Suppose, for instance, that the XYZ organization holds its October event in a city that suffers a hurricane, earthquake, or terrorist act. The insurance premium it bought before the disaster will likely cost far less than if the organization purchased the insurance in the midst of a busy hurricane season.
3. Not only can an organization insure coverage for many different events on the same policy, it can often purchase coverage for events being held several years from now (normally two to three years). Under a blanket policy, organizations can lock in lower rates while covering any potential event it holds in the near future.
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