Event cancellation insurance

A clear guide to event cancellation cover

Event cancellation insurance protects the financial side of your event if it has to be cancelled, postponed, curtailed or relocated due to reasons outside your control. For UK organisers this can include severe weather, venue damage, non-appearance of a key person, transport disruption, or new legal restrictions that make it impossible or unsafe to proceed. The aim is simple: to help you recover pre-agreed costs and reduce the impact on cash flow so your organisation can move forward.

The UK market has evolved since the pandemic. Cover is broader and more modular, with options to include terrorism and civil commotion, communicable disease where available, cyber-triggered disruption to live streams, and specialist non-appearance. Some insurers now use parametric models that trigger a pay-out when a defined threshold is met, such as specific rainfall or wind speeds at your venue, speeding up settlement. Digital tools also help with pricing and risk assessment, particularly for outdoor festivals and hybrid events.

Recent market trends are helpful for budgets. Overall UK insurance rates eased in early 2025, reflecting competitive dynamics, although casualty-related elements show mixed movement. Government support has also existed to bolster confidence, with a UK scheme previously announced to protect against losses from new civil authority restrictions. Combined with competitive UK schemes that package broad protection for charities, councils, venues and suppliers, organisers now have more practical choices than before.

Insurance should clarify risk, not complicate it. The right policy is the one that matches your event’s actual exposures.

What is typically covered and how claims work

Policies usually cover the net financial loss from cancelling, postponing, relocating or abandoning an event due to unforeseen, insured causes. Common insured events include extreme weather that renders a site unsafe, sudden venue unavailability following damage, transport strikes that prevent the event from taking place, and non-appearance of a named speaker or performer if this is included. Extensions may add terrorism or civil commotion, and some providers offer cover for live broadcast failure or cyber incidents affecting a virtual component. Parametric weather cover can pay out based on a defined trigger, reducing claims friction and time to settlement.

Exclusions matter. Known circumstances, pre-existing conditions, lack of necessary permits, poor ticket sales, or voluntary cancellations are usually not covered. Communicable disease may be restricted or available only by endorsement and capacity varies across the market. For outdoor events, adverse weather thresholds are defined in the policy wording. If the threshold is not met, there may be no claim even if attendance declines.

Claims are evidence-driven. Insurers typically require proof of costs, contracts, supplier invoices, and a clear narrative of why the event could not proceed. With parametric covers, the trigger is verified using agreed data sources such as certified weather stations. For a simple example, if a council music festival is cancelled because winds exceed the specified safety threshold, the policy may reimburse unrecoverable costs like staging, security, and marketing spend, subject to limits and the excess. If a keynote speaker falls ill and non-appearance is insured, lost income and additional expenses to rearrange may be covered within the wording.

Who benefits most

Event cancellation insurance suits organisers who would face material financial strain if their event cannot proceed as planned. This includes charities running fundraising galas, councils coordinating community festivals, venues hosting conferences, promoters of concerts and touring shows, and SMEs delivering exhibitions or training events. Hybrid and fully virtual organisers also benefit where broadcast failure or platform disruption could derail delivery.

If your event is small, free to attend, and carries minimal prepaid costs, insurance may be less necessary. Similarly, if contractual terms allow suppliers to refund most fees and your organisation can absorb the remaining risk, you might choose a lower level of cover. The key is proportionality - matching the limit and options to the real exposures in your plan, rather than buying everything available.

Choosing your cover - levels and add-ons

1. Basic - Core Cancellation

   • Protects unrecoverable costs if the event is cancelled or postponed due to insured perils like venue damage or severe weather.
   • Suitable for low to moderate budgets with straightforward risk profiles.

2. Standard - Cancellation plus Disruption

   • Includes relocation, curtailment, and additional expenses to keep the event viable.
   • May add limited non-appearance and property in transit for essential equipment.

3. Comprehensive - Broad Event Protection

   • Higher limits, wider perils, optional terrorism and civil commotion, extended non-appearance, cyber-related broadcast failure, and supplier failure where available.
   • Often suited to larger festivals, conferences, and touring programmes.

4. Optional Add-ons

   • Non-appearance: named performer, speaker or official.
   • Terrorism and civil commotion: venue lockouts, official closures, or security incidents.
   • Parametric weather: pre-defined triggers for rainfall, wind, temperature or snowfall.
   • Communicable disease: where available, often with specific terms and sub-limits.
   • Cyber and live-stream failure: protects hybrid or virtual delivery.
   • Adverse publicity or national mourning: niche, subject to insurer appetite.

5. Coverage Structure

   • Modular design lets you tailor benefits to your event’s risks.
   • Higher limits and broader perils increase premiums but reduce residual exposure.

Cost, pricing and what affects your premium

Eligibility and what insurers require

Most UK organisers can apply, including charities, councils, venues, promoters, and SMEs. Insurers will expect basic information about the event: dates, location, expected attendance, budgeted costs and income, critical suppliers, and any high-profile participants. Outdoor events typically require weather and safety plans, method statements, and evidence of supplier contracts. For non-appearance, insurers may ask for details of the individual’s role, scheduling commitments, and any relevant medical or travel considerations.

Restrictions can apply to certain perils or regions, and disease-related cover may have tighter terms or limits. Large or complex events might need higher-quality documentation and longer lead times. Common reasons for decline include inadequate risk controls, insufficient contract certainty, a history of related claims without remedial action, or requests for cover where the cause is already likely or known. Applying early and providing clear, verifiable information improves eligibility.

From quote to claim in plain steps

1. Define event costs, income exposure, and essential suppliers needing protection.
2. Gather venue contracts, risk assessments, safety plans, and non-appearance details.
3. Request quotes for suitable limits and perils, including optional extensions.
4. Compare terms, sub-limits, excesses, and exclusions line by line.
5. Purchase cover ahead of public announcements to avoid known-cause issues.
6. Monitor risks using weather data and supplier updates before the event.
7. If disruption occurs, notify the insurer immediately and follow instructions.
8. Submit evidence promptly so settlement can be calculated without delay.

Balanced view - advantages and drawbacks

Key checks before you buy

Check the policy schedule for sums insured that reflect actual unrecoverable costs and any expected income exposure. Understand the excess, how it applies per claim or per section, and whether sub-limits affect critical items like non-appearance or additional expenses. Review exclusions for known issues, adverse weather definitions, and any communicable disease restrictions. Confirm waiting periods, claims notification deadlines, and data sources for parametric triggers. Ask how renewal pricing is handled if your event series grows. Keep copies of all contracts, marketing spends, and supplier agreements, as these documents will form the basis of any claim calculation.

Alternatives and related protections

1. Public liability insurance - covers third-party injury or property damage at your event when liability applies.
2. Employers’ liability - legally required if you have employees, covering injury to staff and volunteers in scope.
3. Business interruption - protects trading income following insured property damage impacting your operations.
4. Equipment insurance - covers owned or hired kit for theft or accidental damage on-site or in transit.
5. Cyber insurance - helpful for ticketing platforms, payment processing, and live-stream reliability.

FAQs - straight answers to common questions

Q: Does event cancellation insurance cover poor ticket sales? A: No. Financial underperformance, lack of demand, or voluntary cancellation are typically excluded. Policies focus on unforeseen, external events that make it impossible or unsafe to proceed as planned.

Q: Can I buy cover for communicable disease? A: It depends on insurer appetite and event details. Some offer limited disease cover or specific endorsements with sub-limits and conditions. Availability and pricing can vary and may change over time.

Q: How does parametric weather cover work? A: A predefined trigger, such as measured wind speed or rainfall at your venue, activates a pay-out. Settlement is based on data from agreed sources, which speeds claims but requires the trigger to be met.

Q: Are virtual or hybrid events insurable? A: Yes. Policies can include disruption to live transmission, platform outages, or cyber incidents affecting delivery. Limits, exclusions, and validation requirements apply, so review terms closely.

Q: When should I buy the policy? A: As early as practical, ideally before major announcements or non-refundable commitments. Early purchase reduces the risk that a developing issue becomes a known circumstance and excluded.

Q: Will the UK government step in if restrictions change? A: Government support has been used to increase confidence for the sector in the past, but such schemes are time-limited and specific. Do not assume future assistance. Rely on policy wording.

Q: How are premiums trending in the UK? A: Early 2025 showed generally easing rates across several lines, with mixed movements in casualty-related areas. Individual quotes still depend on event specifics, limits, and risk controls.

What to do next

If this cover fits your risks, gather your event details and review the options that align with your budget and exposures. Compare wording, limits, and exclusions before committing. If anything is unclear, ask the insurer or broker to explain it in plain English. You are in control and can choose a level of protection that fits your event - no more, no less.

Important notice

This guide is for general information only and is not personal financial advice. Policy availability, terms, and pricing vary by insurer and event. Always read the full wording, check limits and exclusions carefully, and seek professional guidance if you are unsure.