Christmas Has Been Cancelled!
Don’t Worry PIU Can Insure That!
Event Cancellation Insurance has saved more than this one holiday. Perhaps you need to tell your clients about Event Cancellation Insurance.
What Exactly Is Event Cancellation Coverage
Just as a fine Bouillabaisse has an assortment of ingredients in its mixture, Event Cancellation Insurance involves an assortment of risks which may be chosen to be included within the mixture of benefits. It is partly a life and health plan of insurance in that it will cover death and disability. It is partly property and casualty since it can cover destruction and the fury of Mother Nature and it is part contingent insurance in that it can cover man made situations as well.
Even with careful planning and taking into consideration every precaution, there are still occurrences outside the realm of people’s control that may cause an event to be cancelled. Whether it’s due to a dangerous thunderstorm, a workers’ strike or the illness of the performer or a close relative – an unexpected event cancellation can put a huge strain on any budget for both the venue and the performing act.
Petersen International Underwriters offers a solution called Event Cancellation/Non-Appearance coverage. Event Cancellation/Non-Appearance coverage can provide a benefit to the venue in order to recoup the cost from cancelling or rescheduling an event. Perils such as lost wages for staff, lost revenue from vendors and lost income for the performer can all be insured.
A Different Approach To A Disability Need (take the case of…)
What type of income protection would you prescribe to a person who earns his money making speeches. Disability insurance is of course the first thing that pops into the minds of life and health agents. But let’s look at this situation closer. His speaking tour compacts 20 appearances into a 3 month period. His fee for each speech is $25,000. That is $500,000 of income at stake. Now assume that this person was in a bad auto accident that laid him up for 3 months. He would put in a claim on his disability insurance and after satisfying his 90 day elimination period it is determined that he is once again fit and able to return to work. But guess what, he has missed on the $500,000 of income from his cancelled events. This is where Event Cancellation / Non-appearance insurance actually works better than disability insurance in protecting this person’s income.
A Different Approach To A Property and Casualty Need (take the case of…)
An artist had an eleven stop music tour scheduled. During one of the setups/rehearsals for a show a row of stage lights came crashing down to the ground, fortunately not hurting anyone but destroying a significant amount of equipment. The production manager had to hustle to try to get replacement equipment so the show could go on, but this would mean rescheduling the event for a few days. Luckily the production manager bought event cancellation insurance which covered all the costs involved in the rescheduling of this event.
A Different Approach To A Contingency Need (take the case of…)
A large venue had a trade show scheduled in January. The day of the event a massive blizzard caused all the roads to the convention hall to be closed. Unfortunately neither the venue nor the producer of the show had secured Event Cancellation coverage. The costs and the profits from this show are lost forever. If the venue had purchased coverage they would have received benefits to cover their employees’ lost wages, costs incurred in preparing for the show and the profits from the concession sales. If the producer of the show had secured Event Cancellation coverage he too could have recouped his lost deposits and lost profits from the show.