| The event was the COMDEX convention held at the | | | | such coverage exists, or mistakenly rely on the |
| Georgia World Congress Center in Atlanta. COMDEX | | | | insurance of the event venue...like a convention hall. |
| was the annual global IT convention, featuring the | | | | The venue's insurance will help them rebuild or repair. |
| newest computers, electronics and gadgets. This was | | | | But it won't help the event planners find another |
| the biggest convention held in Atlanta each year. | | | | venue, or compensate them for the costs they incur |
| 200,000 people would attend the convention over | | | | or income they lose from cancellation. |
| four days. | | | | Coverage and Cost |
| Two days before the convention opened, a category | | | | The rule of thumb is that cancellation insurance |
| 3 tornado struck downtown Atlanta. The twister | | | | covers perils that are beyond the control of a |
| tore off 100,000 square feet of roof from the | | | | planner, such as inclement weather, strikes, |
| Convention Center and dumped hundreds of | | | | outbreaks of disease and so on. You can also |
| thousands of gallons of rainwater inside. Local news | | | | purchase coverage for "Non-Appearance," in case |
| footage showed water cascading down a big | | | | your event relies on the appearance of a person or |
| stairway like a waterfall. | | | | group (speaker, performers, player, invited guest). |
| COMDEX was cancelled. The financial losses for the | | | | The policy also covers things such as extra expenses |
| event planners fairly boggle the mind.* | | | | for trucks and workers in case an exhibitor doesn't |
| What if the show can't go on? The consequences - | | | | break down his exhibits. What is not covered are lack |
| particularly for a corporation staking big bucks on a | | | | of planning, low attendance from a lack of interest or |
| marketing event or for an association that gains | | | | poor marketing, or bankruptcy of the planner. |
| most of its revenue from an annual conference - can | | | | Coverage begins as soon as the premium is paid and |
| be dire. One safety net is event cancellation | | | | usually extends for five days after the event. |
| insurance, which can protect your event investment | | | | Coverage purchased well before an event can be a |
| against catastrophes, strikes, earthquakes and | | | | godsend if something happens to the facility where |
| snowstorms. | | | | you're booked, as the coverage would cover costs |
| Event Cancellation Insurance has been around for | | | | of relocation and notifying attendees. |
| decades, and has a long history of protecting special | | | | The cost of this coverage is calculated on a |
| events from conventions, to trade shows, to | | | | policy-by-policy basis. Every event is different and |
| exhibitions, entertainment or sporting events. | | | | each has unique risk exposures. The standard costs |
| An insured may have incurred expenses all year long | | | | of this coverage run about fifty cents per $100 of |
| preparing for an event but can't afford for an | | | | coverage. However, variables like location (areas |
| unpredictable event to cause its cancellation. Think of | | | | susceptible to hurricane or earthquake) or season |
| the costs for travel, venue deposits, rescheduling | | | | (winter is higher than spring, summer or fall) can push |
| costs, as well as other costs including planning. | | | | the price up towards $1 per $100 of coverage. So, a |
| Often the kinds of problems that can lead to | | | | $1 million policy might cost up to $10,000 or more. |
| postponement, cancellation or relocation of an event | | | | When To Buy |
| are out of the planner's control. Look to Event | | | | Event cancellation insurance is usually less expensive if |
| Cancellation Insurance for the kind of coverage | | | | purchased far in advance. Insurers increase the |
| needed to protect that financial exposure. | | | | premium rate, theorizing that the closer the event is, |
| Whether planners should invest in cancellation | | | | the more desperate the planner must be for |
| insurance depends upon how important an event is | | | | coverage. |
| to an association or corporation financially and what | | | | We recommend that you get at least two price |
| kind of risk it is assuming. If your group event is | | | | quotes before making a buying decision. We also |
| planned for 50 people, you'd probably not buy this | | | | recommend that you review a sample copy of any |
| policy. But if 500 or 5,000 people were expected to | | | | policy before purchase to determine what is covered |
| attend, event cancellation insurance could be crucial | | | | and what is excluded. |
| to your bottom line. | | | | Then, have a super successful event! |
| Sometimes, event planners don't think about event | | | | *This catastrophe was entirely fictitious. |
| cancellation insurance. They either are unaware that | | | | |