All You Need To Know About Event Insurance

Jul 06, 2020 (0) comment , , , ,

Till 8 months back, nobody, in their wildest of imaginations had thought that the world would face a crisis of a scale that it is facing today. The Covid-19 pandemic struck like lightning, thereby forcing nations across the globe to restrict the movement of their citizens to combat the spread of the dreaded disease. While countries like China imposed restrictions limited to the affected region, others like India went for a nationwide lockdown.

However, such lockdowns and restrictions have come at a cost. Such lockdowns and restrictions have already caused massive losses to businesses, both big and small, due to sudden fall in economic activity. They have also forced individuals and organizations; both public and private, to either cancel or reschedule several pre-planned events. Only those who had foresight of getting those events insured against such eventualities may be able to mitigate its impact.

Therefore, in the light of the prevailing situation, Secure Cover would like to inform its readers about insurance products that could protect their financial interests against such eventualities. One should also keep in mind that at present, there might not be any event insurance product currently available in the market that safeguards an event against risks associated with Covid-19 like pandemic. Nevertheless, one is advised to insurance his or her business against covered events that are currently available in the market.

What is Event Insurance?

Event insurance includes those insurance products that provide compensation to the client in case of cancellation of the event, or to the third party if any injury or property damage is caused as a result of that event. Some such events that can be insured include Conferences, Award Shows, Functions, Wedding and Reception, Sports events etc.

What event Insurance products cover?

1. Cancellation/postponement of the event – In case the event gets cancelled due to reasons such as fire and related incidents, burglary or theft etc, the insurance company provides compensation. If the event included appearance of a specific person such as celebrity, film star or chief guest etc due to illness, injury or death, there is provision for compensation. Such compensation includes non-recoverable expenses incurred in organizing the event as well as certain specific types of revenue related to the event.

2. Damage or loss to property – This includes compensation for loss or damage to the property due to fire, earthquake, burglary or theft. However, one should note that the insurance company is not liable to compensate the insured event if the damage to the property due to factors such as wear and tear of the property or electrical or mechanical breakdown. It is also not liable to compensate for such damage if it is found that such damage or loss has been caused due to negligence or intentional action, either directly or on direction of the insured.

3. Personal accident – Event insurance also has provision for compensating the person declared in the insurance or his/her blood relatives in case of accidental death, permanent partial disablement or permanent total disablement. However, such injury, disablement or deaths are not covered that happen due to intentional self injury, including suicide or attempted suicide. Such injury, disablement or death is also not covered if it happens due action of the insured under the influence of alcohol or intoxicants.

4. Public Liability – This is probably one of the most important provisions of the insurance as it includes coverage of liability towards third party in the event. However, to qualify for compensation for such an instance, one must prove that accident or damage to the third party occurred to the third party in the venue of the event and in connection to the event. The third party does not qualify for compensation if it occurred after the expiry of the policy period of the event.

What all are excluded in event insurance?

1. Non-coverage includes damage, injury, death, damage or loss due to acts of god such as flood, storm, hurricane, typhoon as well as other such convulsions of nature.

2. Any deliberate or wilful non-compliance of statutory requirements that leads to such consequences as death, injury or loss or damage.

3. Loss occurred due to acts of terrorism, war, rebellion or hostilities.

4. Loss due to actions of the government such as confiscation, detention, destruction etc.

5. Loss due to personal reasons such as menstruation, child-birth, communicable diseases etc.

Let’s Wrap Up!

Event insurance is aimed at providing financial relief to the insured in case of cancellation or postponement of the event due to unforeseen events as well as compensation to the third-party due to incidents related to the events. The coverage as well as exclusions of insurance coverage depends on the policy or the insurance provider. However, broadly the event insurance covers damage or loss to property during the event, personal accident and third party liability and excludes those caused due to acts of god, wilful non-compliance of statutory requirements, acts of terrorism, personal reasons etc.

To know more about event insurance, you can write to us at or call us at: +91-9650856644.

Disclaimer: The content of this blog is based on personal research of the writer. Reader’s discretion is advised. Neither Secure Cover nor the writer will be held responsible for any wrongful interpretation of the content of this blog.

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