Australia is home to thousands of businesses that organise and stage corporate and leisure events. If yours is among them, you’ll likely know it’s an industry where the unexpected can and does happen. Event insurance can help mitigate the risks of disruption and help you take setbacks in your stride.
From wet weather wash-outs to pandemic shutdowns, there’s no shortage of things that can scupper even the most meticulously planned events.
Having the right insurance cover can help make it easier to take disruption in your stride and recover from setbacks that might otherwise sink your operations.
So, what insurance do events businesses need? Steadfast broker technical manager Michael White outlines the cover that can protect your enterprise from some of the most common events related risks.
Insurance cover for event cancellation
An artist calls off a performance mid-tour, torrential rain forces organisers to pull the pin on an outdoor festival at the eleventh hour, a keynote speaker is taken ill unexpectedly and can’t be replaced, or a building hired for an event is damaged in a storm and cannot be used. There are lots of reasons why events need to be cancelled and when they are, it can be ruinously expensive for the organisers.
That’s where cancellation of events cover comes into play. If your event is unavoidably postponed, abandoned or cancelled, it can help defray the non-recoverable costs you’ve incurred.
Public liability insurance for events
If patrons or staff are injured while attending or working at an event, they may be entitled to seek compensation from the organiser or promoter.
Public liability insurance may help you cover the cost, should that occur.
But, irrespective of the nature of your operations, making workplace health and safety a priority can help reduce the likelihood of accidents and incidents.
“Prevention is always better than cure,” White says. “Training your team and mandating safe practices for attendees and workers will serve your business well.”
Property insurance
Depending on the type of events you stage, the value of your equipment may run into the tens of thousands of dollars. Should it become lost, stolen or damaged – accidentally, deliberately or in an extreme weather event – property insurance can help fund its replacement.
And if you operate out of your own premises, you’ll want to ensure you have a building insurance policy that covers the cost of relocating to an alternative venue and repairing the damage, in the event of a disaster.
Business interruption insurance
Unexpected incidents and events can make it impossible for your events company to maintain business as usual. Should that be the case, you’ll need business interruption insurance to fall back on – a type of cover that can help you maintain cash flow if your enterprise is knocked out of action.
“If you’re unable to trade, for a short or long period, it can be a lifeline,” White says.
Cyber insurance
In recent years, cyber-crime has become an existential threat for businesses. The Australian Cyber Security Centre received 94,000 cyber-crime reports in FY2023, a 14 per cent increase on FY2022’s figure.
Attacks can be costly and disruptive. It is reported small businesses are now spending an average of $46,000 on recovery and remediation while for medium sized businesses the figure rises to $97,200.
Implementing the Essential 8 mitigation strategies proposed by the Australian Government can make it harder for hackers and cyber criminals to compromise your systems. And cyber insurance can help further cover your losses and remediation costs, should you have the misfortune to fall victim.
Cyber Wardens is a free online cyber security course funded by the Australian Government which may assist in small businesses in becoming more familiar with cyber threats.
Cover to help your events business keep on rockin’
If you haven’t reviewed your business insurance for a while, now is a great time to do so. To discuss all your events business cover needs, contact your AIB broker today.
Important notice
This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.
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Important notice – Steadfast Group Limited ABN 98 073 659 677
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