Event Risks: Factors Affecting Event Cancellation

Adverse weather is the most frequent cause of major events being cancelled. Inclement weather most often impacts outdoor sporting events. The sport, time of year, and its location increase the chance of an event being cancelled. For example, baseball and golf require dry conditions to play. Football and soccer, however, can be played in almost all weather conditions, except when lightning is present.

Event Risks: What Causes a Major Event Cancellation or Postponement?

Pubic transportation problem. Public transportation helps attendees get to the venue. If a major disruption to public transportation occurs, a public event cancellation is a possibility.

A damaged venue. Damage to the venue postpones events indefinitely. You may therefore need to find a new venue.

Damage resulting in blocked access. Blocked access prevents patrons from entering the venue. As a result, you could lose decorations and food services already hosted inside.

Power failure. Electricity controls most event activities, especially lighting. The widespread loss of power will almost certainly lead to an event cancellation or postponement.

Natural catastrophes. Tornadoes, earthquakes, fires and floods present a major risk to events.

Missing participants. A key participant that does not show up is another cause for cancellation.

Inability to raise facilities. Damaged facilities (stage, sound system, etc.) will cause delays and if they cannot be fixed in time, the event may be cancelled.

Health hazards. A major health risk to public safety – such as a disease outbreak – may result in a cancellation. Zika threatened the Rio 2016 Olympics, for example.

Labor disputes. Venue workers can decide to strike before the event. The loss of staff will lead to a cancellation.

Broadcast Issues. An issue with broadcast signals or television and radio networks may delay events.

A terror attack will most likely lead to a cancelled event. As a result, many companies offer coverage for terrorism. This coverage is broader than property damage. It includes situations where "access to an event" has been closed off because of an attack or threat. Threats made against the event itself are also included.

With Hays Companies’ EventGuard event cancellation insurance program, event risks will not have a negative effect on your business. We provide important coverage for lost revenue and expenses caused by a cancellation or postponement of an event.

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