What is Cancellation Insurance?
Cancellation cover replaces lost revenue and reimburses expenditure incurred from an event which is necessarily and unavoidably postponed, abandoned, cancelled, curtailed or relocated in circumstances beyond your control.
With Non-Appearance and Cancellation Insurance you can protect income that depends on the event going ahead, or just cover specific costs such as venue hire, artist accommodation, travel and marketing. Even if it's a free event with no ticket revenue at stake, Cancellation Insurance can cover incurred expenditure.
Pre-existing medical conditions, lack of interest/ticket sales, and financial insolvency of the parties are standard exclusions - and pencilled dates without contracts or letters of agreement cannot be claimed.
Question: Do you know your legal obligations regarding ticket refunds? Do you have an explicit policy in place - and is it appropriate?
Find out more about Cancellation coverage and what to consider with our How to... Avoid the Top 6 Cancellation Blunders.
Cancellation Insurance is highly flexible, and can be customized to your needs. You can choose both the sum insured and period of the policy, which could be 12 months, or just specific dates. You might opt to include only your soloists.
The premium is a rate percent of the total sum insured. This can range from 1.00% to 3.5% - depending on factors like artists' ages, cancellation loss history, level of income generation, and whether the event is indoors/outdoors.
An outdoor opera company cancelled two performances due to floods as neither audience nor orchestra could access the site since all approach roads were under water.
An opera singer fell ill with laryngitis days before a European festival appearance. A last minute replacement was found, contracted and travelled in time to make rehearsals and the performance.
A leading orchestra arrived at London Heathrow prior to an international tour to find the airport closed due to a strike. Cancellation of the tour would have cost GBP 35,000 and so insurers paid for the orchestra to be transported to London Gatwick, where a private plane was chartered to fly them to the first country of the tour.
A US string quartet was due to play at London's Wigmore Hall three days after 9/11 and with all flights out of New York grounded they were unable to travel, forcing cancellation of the concert.
Property: computers, audio visual equipment, offices
Consequential Loss: protects income streams during physical and technological disruptions (fire, flood, power & telecommunications failure)
General Liability: cover for compensation payments arising from damage to third party property or personal injury
Workers' Compensation: for injury and illness to employees and freelancers
Errors & Omissions: helping to defend you against allegations of libel, slander, infringement of copyright, breach of confidentiality
Directors' & Officers' Liability: protecting decision-makers against alleged mismanagement of the organization
Travel & Touring: trip cancellation, medical expenses, passport replacement, loss of baggage
Specialist Cancellation Insurance: cover against financial loss as a result of cancellation, abandonment, postponement or re-scheduling of an event. As an artist manager, you can opt to insure your highest earning artists/authors with a “friends and family” type policy – entirely flexible and designed to cover areas where your income is most vulnerable - without breaking the bank. Some problems are worth losing sleep over. We believe insurance isn’t one of them. More >
We understand you so well, we'll complete the form for you if you prefer! Let's talk...Download: Arts & Entertainment Brochure
Quote within 24 hrs
The arts present a very specific set of risk exposures – and now your digital and online risks can expose you globally. We understand the risks and pressures you face - and we speak your language. We’ll support you with great advice - helping you make good decisions for your organization.
Our policies can help streamline costs, and we’ll always help you stay ahead of the game in managing risk. The show must always go on - insurance isn’t just about processing a claim, it’s about thinking laterally to solve challenges and problems fast.
At La Playa, we’re passionate about the arts and creative industries – many of us are practitioners and active consumers; in fact, La Playa founded the first ever corporate art collective!