Calls to postpone or cancel the 2016 Olympics highlight the importance of event insurance.
More than 100 doctors and research professors recently wrote an open letter to the World Health Organization (WHO) recommending that the upcoming Olympic Games in Rio de Janeiro be postponed. The fear is that the widespread outbreak of the Zika virus in Brazil could have serious medical consequences, potentially harming the event's participants, attendees and the local population.
The Zika virus, which is generally spread by mosquitoes, can cause a rare birth defect called microcephaly. Brazil is considered the epicenter of the Zika outbreak. The Centers for Disease Control and Prevention (CDC) recommends that pregnant women refrain from traveling to places where the Zika virus is spreading.
A recent letter from more than 100 renowned doctors and professors to the World Health Organization (WHO) does not mark the first call for a postponement of the 2016 Summer Olympics. It is notable, however, for the weight of its authors. Physicians, professors and bioethicists from across the world all agree that the medical consequences of holding the event could be serious.
Although the 2016 Olympic Games is set to proceed, the recent possibility of its cancellation or postponement highlights the importance of event insurance.
Keep in mind that the cost of the previous Summer Olympics exceeded $14 billion. If the event did not go as planned, the economic outcome could be devastating for all invested parties.
Both event cancellation insurance and event liability insurance policies address financial risks associated with major events such as the Olympics. It is important to take into account the potential loss of revenue and expenses when sponsoring large public events. Regularly overlooked during the event planning process, event insurance policies serve to protect event sponsors and organizations from these financial outcomes.
Without sufficient liability protection, the cancellation or postponement of an event as large as the Olympics could lead an event organizer, company or individual to bankruptcy. Prepare for unforeseen circumstances. Learn what event insurance options are available.