Extreme Weather & Its Financial Impact On Events
A recent outbreak of severe weather ripped through the South Central United States, obliterating homes, producing tornadoes and tearing out trees and their roots.
The extreme winds and thunderstorms will undoubtedly cost event organizers. The fortunate ones who purchased event cancellation insurance will be relieved they did. Their insurance will repay them for lost revenue and expenses from the cancellation of their event.
These unanticipated threats are precisely what event cancellation insurance is designed for, safeguarding an organizer’s bottom line against situations outside of their control.
The Importance of Weather Event Cancellation Insurance
Weather is one of the primary causes of event cancellations or delays. Not only will rain and lightning ruin an outdoor venue; extreme weather can delay flights, cause road closures and result in flooding. All of these incidents can result in an event not going as planned.
Canceling an event still means that you have to pay those involved (and cancellation fees are usually high). Musicians, caterers, servers and bartenders must be paid even though your event was cancelled. Money for travel, accommodation and venue reservation is also affected.
Even if a storm does not delay or lead to an event being canceled, extreme temperatures alone can put a stop to the occasion. Agricultural showings, outdoor weddings, sales promotions and sporting events may lose revenue because of extremely high or low temperatures.
An event may not be canceled but will still be affected by the weather. Heavy snowfall or cooler temperatures can impact event attendance. Ticket sales and revenue may be significantly diminished.
If a major source of your annual revenue comes from an event such as a trade show or conference and it is cancelled, are you going to make it the rest of the year without that revenue you rely upon? Your organization must secure your revenues in the event that extreme weather disrupts your event.