Picture this: Your association’s annual conference and tradeshow starts next week and you are going to be the superstar in your Board’s eyes. Exhibit space sales are through the roof, attendee registration will be higher than ever, even the caterer has agreed to integrate your logo into the cake at the Opening Night Dinner Gala. You’ve done everything possible to make this year’s event more successful than ever.  Then you turn on the news – another major terrorist attack just took place in New York. The FAA has restricted air travel, the Department of Homeland Security has issued a warning against holding public events, your voicemail and email are inundated with messages from exhibitors and attendees telling you they aren’t coming to your event. Your event is now a financial failure and your Association’s annual budget is decimated. Your job is in serious jeopardy.

 

This is the situation that many association executives where in after the September 2001 terrorist attacks. However, it does not have to be like this now. In addition to handling all of the issues that go with the successful planning of an event, one major issue that is just as important as selling exhibit space, designing programs, preparing catering menus, and booking entertainment is making sure you have the proper insurance for your event.

 

This situation above could have been avoided with buying Event Cancellation Insurance for your event. This coverage protects the income you where projecting to earn and the expenses you spent on your event should it need to be cancelled, postponed, relocated, or even just interrupted for a day due to reasons beyond your control. Some of the insurable situations that that could affect your event include earthquakes, hurricanes, fire in the venue, terrorist attacks, disease outbreaks, wildfires, and even volcanic eruptions. The Premium for the coverage usually is only a fraction of the percentage of over revenue and event is projected to make. For example, the Premium for a conference projected to generate $1,000,000 in Gross Revenue would likely be less than $5,000 to insure.  

 

Another important issue to consider regarding insurance for your event involves your liability. Although you may have an annual General Liability Policy that is designed to cover your office operations, it is important to know that this Policy is not intended to cover special events such as conferences and meetings. If an attendee is injured at your event or causes property damage and you have to make a claim under your existing General Liability Policy it may increase your annual premiums for year’s to come. A better solution would be to buy a “Special Event” Liability Policy specifically for your annual events. This low cost Policy covers most of the same exposures as your association Policy but is specific to your events. In addition, you should also consider requiring all exhibitors at your event to buy this coverage as well and name you as an Additional Insured because any problems involving an Exhibitor at one of your events will likely involve you as well.