There are several types of Contingency Insurance available to cover a range of unpredictable circumstances that may affect your planned business activities. These are:
- Cancellation & Abandonment
- Prize Indemnity
The following describes a bit more about the types of Contingency Insurance that may be necessary for your business.
Cancelation and Abandonment
Event organisers, promoters and sponsors incur expenses prior to an event for deposits and upfront costs. They cannot afford for an unpredictable event beyond their control to cause the event to be postponed, cancelled or relocated. However, there are a number of situations that can result in this happening, from adverse weather, to physical damage to the venue or issues with access to the venue, non-appearance of artists or speakers, failure of electrical supply, strikes and late arrival of essential items.
Cancelation and Abandonment Insurance may cover organisers, promoters, sponsors and venue owners for costs & expenses as well as loss of profit, as a result of an unpredictable event. Events that can be covered include:
- Indoor and Outdoor Sporting Events
- Conferences, Exhibitions and Trade Fairs
- Concerts and Festivals
- Charity Gala Evenings, Dinners and Balls
- Theatre, Opera or Ballet Productions
- Public Speaking Events
- Open Days and Fetes
- Publicity Launches
- Corporate Events
- Film and Commercial Production
Pluvius Insurance Cover
Pluvius Insurance Cover (names after the Roman god of Rain) is a specific type of cover, where the insured is paid an agreed amount should a specified amount of rainfall at their event. More rain means less spectators and lower ticket sales.
For Pluvius Insurance cover to kick in, the event doesn’t necessarily need to be cancelled, however rainfall must exceed tolerance.
Prize Indemnity Insurance cover is when the insured is indemnified for the value of a prize in their promotion or competition. Competitions that may be covered include prize Draws and Skill Contests.
- Prize draws: Competitions drawn at random, such as envelope picks and wheel spins.
- Skill contests: Competitions that involve a level of skill in order to win, such as a golf hole-in-one or a shot at goal in soccer.
It’s important to be aware that specific State Legislation may require licenses according to the value of the prize. Furthermore, for compliance purposes it may be necessary for a 3rd party to supervise the competition.
If your business has an important event coming up, Contingency Insurance may be a worthwhile consideration. Speak to us about your options.