Event insurance, are you covered for Coronavirus COVID-19?

Before the breakout of Coronavirus, insurance cover for communicable diseases was either part of the standard policy or could be added at low cost. However, since January 2020, when the insurance companies realised the extent of the problem, this cover was removed. It is unlikely that an event organiser will be able to add it to an insurance policy now as it is classed as a pre-existing condition and listed under excemptions.

However, the way to get around this going forward is for organisers to put clauses in their contracts with event attendees, speakers, exhibitors, suppliers and venues.

If you think you are going to cancel an event, the best thing to do is speak to your insurance company as early as possible, take advice and understand what the procedure and terms are. Make sure you’ve got all the necessary evidence to claim successfully. The worst thing to do is present them with a claim after the event has been cancelled, without notice. Each claim will be assessed on an individual basis, taking the government advice into account and whether Force Majeure applies.

Force Majeure

This is a provision in a contract that allows a party to suspend or terminate the performance of its obligations when certain circumstances beyond their control arise, making performance inadvisable, commercially impracticable, illegal, or impossible. A recent example is a law passed by the Swiss government prohibiting public events of more than 1,000 people which caused the cancellation of the Geneva Motor Show. Some other considerations are if the city/country is in a state of emergency, flights have been suspended or travel has been prohibited.

• The law that applies will be the law of the country where the event is being held
• If your meeting is in the UK but attendees are from China, USA or EU countries which are not operating flights to the UK
• Hotel contracts will usually have a Force Majeure contract that applies to the hotel’s location, so would only apply if that destination prevents the event.

Will Coronavirus be covered by future insurance?

After 9/11 very few event insurance policies would cover terrorism, but as time passed the option was offered with an expensive premium in proportion to the risk. In the longer-term insurance underwriters adjusted their assessments and exposure to claims and the rates reduced. At the moment we don’t know how long Coronavirus will last and the impact on events in the future. When will a vaccine be available or will the virus die out in due course? There may be legislation to address insurance claims due to Coronavirus in the future, but in the short-term it’s better for event organisers to take matters into their own hands and build clauses into their contracts.

This article does not constitute legal advice and we advise organisers to take independent legal guidance which is appropriate to their circumstances. This article is not intended to be relied upon to make specific decisions.