Why You Need Event Cancellation Insurance
Put yourself in this situation: your company’s annual fundraising event is coming up. You have completed the painstaking tasks of booking and signing contracts for the use of an event center, your caterers, entertainment and beverage services. However, at the last minute, a major storm delays all major inbound flights in your region. You now have to cancel or postpone your event. Not only may your reputation suffer; you will likely suffer a huge financial loss.
Canceling a major event can end up costing you or your organization thousands or even millions of dollars. For this reason, an increasing number of carriers recommend that business owners obtain event cancellation insurance in order to safeguard their company.
Event Cancellation Insurance is secured for major events as a defense against the loss of profits or additional expenses. These expenses may arise from unavoidable incidents such as unanticipated weather, terrorism, the loss of power, a complete cancellation, delay, disruption or relocation of an event.
Planning a public or large private event can take years. When an organization acquires major costs during the planning stages, many will struggle to pay the money needed to cover expense of a disruption or cancellation. A company’s resources impact its success. With threats to its assets and reputation being significant, event cancellation insurance is necessary to defend a business against major financial losses.