From high profile sporting events to star studded music concerts and your local market to regional showcases, all these events need a safety net of cancellation insurance. Considering the amount of events held in Australia one would think contingency insurance is a large segment.
However, according to Ian Stack from Action Entertainment Insurance it is a very undersold market. Stack says, “There is a misconception that insurance is expensive but it really is not and contrary to popular belief it is also not hard to get, quite easy in fact.”
There is a lot that can affect small as well as large events and prevent them from going ahead and the segment is a major opportunity for brokers. Stack explains, “A lot of clients out there don’t understand the various policies and what they need. Brokers can play a major role by explaining what the policy covers and the various add-ons and extensions a client needs based on their particular requirements.”
Event organisers often incur significant expenses in the lead up to an event, reliant on the revenue generated on the day to cover their outlay and hopefully earn a profit in doing so. Contingency insurance picks up quite a number of different kinds of risks making it complicated which means a knowledgeable broker can be invaluable.
Stack recommends that insurance brokers ask their clients a lot of questions to know what sorts of things might cancel the event as well as to decide what market to place the risk. He says that conferences and small cultural events is where most of the opportunities lie and advises, “Claims can be complex, so you really need a broker who understands this kind of insurance and claims process.”
The August issue of NIBA’s Insurance Adviser magazine has a lot more on this topic from industry experts. Have you received your August Insurance Adviser? Missed out? Email firstname.lastname@example.org