Australia has a packed events calendar, however, the recent space of floods, storms, bushfires and terrorist incidents have brought home the need for contingency insurance for event promoters and organisers.
Katie O’Neill, Contingency Underwriter at Beazley Underwriting said in her interview to NIBA’s Insurance Adviser that, last surveyed, the sector is estimated to be worth around $10 million, “a large portion of which is placed directly into London rather than with local insurers”.
However, she believes the potential market to be much larger as there are still many events in Australia that run without the safety net of cancellation insurance.
No two events are the same and brokers need to clearly understand a client’s needs before talking to underwriters to ensure they are covered for key risks, like public liability, bad weather, venue and equipment damage et cetera.
Organisers and promoters need insurance for a whole range of situations when their events are unavoidably cancelled, postponed, abandoned, restricted or relocated.
The questions insurance brokers need to ask events clients before placing their business are:
1. What is your client most concerned about? This is your opportunity to advise them about the risks they may not envision. For example, a promoter bringing an artist into Australia for a concert tour might be most worried about adverse weather and not at all concerned about non-appearance of the artist.
2. From a parametric insurance perspective, the main question is if the weather can have a significant impact on your client’s revenue.
3. Brokers need to have a good grasp of the numbers that your client is dealing with and not be afraid to ask the client in-depth questions about their budget, costs, expenses and margins.
4. In the contingency space, no information that affects the event is off limits. For example, brokers might need to know confidential information like medical or addiction issues that the headlining artist has etc.