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Event insurance vs no event insurance: You decide

August 22, 2018

We sometimes get questions from people asking why they need event insurance. To us, there’s a pretty simple answer; you can’t afford not to have it.
But instead of just saying it, we thought we’d create a few scenarios that could occur at an event you’re running, to show you the difference between having and not having event insurance.
Scenario 1: Injury to a volunteer
You’re running a fun day for your village. You don’t pay staff, but you do have an army of volunteers manning stalls and helping the day to run smoothly.
Unfortunately, one of the volunteers trips over a loose wire on the floor. She suffers a bad injury and cannot walk or work. She wants to claim for the loss of income and damages for ongoing medical issues.
With Insurance: Even though she is a volunteer, she would still be covered by the employers liability cover in your policy. The insurance would protect you in the event of the claim, ensuring that this accident does not leave you out of pocket.
Without Insurance: In the event the claim is successful, one of two things could happen. Either you (or your event) could be liable to pay out the claim in full, which could be financially crippling. Or, if you’ve set up a company to run the event, it could be determined that the company isn’t able to pay the claim, pushing the company into bankruptcy. In that instance, the volunteer could be left financially crippled. Neither of those are scenarios you want to think about.
Scenario 2: Rain spoils your big day
You’re running a large festival and thousands of people have bought tickets. You’ve paid deposits for an array of entertainment as well as catering.
Unfortunately, a few days before the festival is due to start, the heavens open and the torrential rain forces you to cancel your event.
With Insurance: You might not be able to prevent the disappointment of fans, but you can recover the costs you’ve spent getting your festival to this point. This should allow you to reorganise your festival for a later date. Still disappointing, but not the end of the world.
Without Insurance: The cancellation could, in theory, finish your ability to host festivals for good. With a large outlay that you’re never going to recover, you’re in the red for this festival – big time. Combine fan disappointment with an events company who are financially broke, and future events don’t look likely. Potentially, you could have spent thousands for nothing in return.
Scenario 3: The headline act cancel
You’re hosting a big ‘battle of the bands’ event at a cool venue in the centre of town. You’re planning on increasing the crowd for the event by adding a famous act to the line-up of amateur bands. You’ve paid a lot of money to book the famous act, and many people will buy tickets based on their appearance alone.
Unfortunately, a few hours before their set is due to start, you receive a call from the famous act saying their lead singer is ill and they can no longer perform. You have lots of angry customers and you lose money on the back of their no-show.
With insurance: Much like with the last scenario, insurance can’t prevent disappointed customers. But it can cover you from heavy financial loss. Cover for when the live act doesn’t show can protect you against lost revenue and ensure that your battle of the bands isn’t a complete failure. Your customers will still get to see some pretty cool amateur bands, and maybe next time you can try again with the famous act.
Without insurance: Without insurance, you’re completely stuck. You have no live act, you can’t claim on any of the lost revenue, or the expenses on booking the act. You’re out of pocket and have plenty of angry customers. It’s not a scenario you want to be in.
The simple process of buying event insurance from insure-our-event.co.uk could save you lots of time and lots of money. With just a few clicks of the mouse, you can purchase the cover that ensures you don’t end up feeling the financial burden of something that’s not your fault.

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