Majority of event organisers neglect cancellation cover

Two-thirds of corporate event organisers fail to invest in cancellation insurance, leaving them potentially liable for unforseen costs, according to Hiscox.

The specialist insurer found that 90 per cent of organisers consider risk management to be paramount to the success of an event, yet 36 per cent neglect to fulfil their legal obligation by undertaking formal risk assessments.

Adverse weather is a major cause of event cancellations and postponements in the UK and organisers of outdoor gatherings could face heavy financial losses without the appropriate cover.

"Take up of cancellation cover continues to score poorly despite the weather disruption of last year and the significant financial losses that many event organisers would have suffered," said Mark Trevor, managing director of the event insurance division at Hiscox.

"Of equal concern however is that 33 per cent of organisers were unaware of exactly what type of insurance cover was in place to protect their event. This is often the case in larger companies where the actual insurance buyer is separate from the event organisers 'on the ground'."

In its poll, Hiscox found that fewer than a quarter of event organisers were aware that cancellation losses could be insured, over half were oblivious to the fact that there was insurance to cover potential loss of profit. A similar proportion did not realise that insurance could be secured to protect against the non-appeareance of a celebrity or keynote speaker.

More than 220 corporate event organisers were surveyed in the poll, which was conducted in November last year.

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