Date: April 2012
Can You Afford NOT to Buy Cancellation Insurance?
In a year of high profile performance events, insurance specialist Paula Hawthorne urges arts organisations to work through their risk exposures to cancellation – and to think smart when buying Cancellation Insurance.
2012 is shaping up as an exciting year for the arts in the UK, with the Queen’s Diamond Jubilee, the London 2012 Olympic Games and London 2012 Festival, the culmination of the largest ever Cultural Olympiad. Due to the size of these events, many arts organisations across the country are being pulled in to create spectacular and memorable performances, but being involved with such high-profile events also brings high-level threats to organisations.
The key risks are travel disruption, denial of access to venues or offices (especially those with premises near the Olympic sites), cyber attacks or worse, terrorist threats/attacks. With this in mind, Cancellation Insurance should be a vital piece of armour for arts organisations and events companies this summer.
Traditionally, Cancellation Insurance has been perceived as expensive; in fact, it’s infinitely flexible - so you can be smart about it and only buy cover for your worst risk exposures. You can also get cover for specific periods of time, so if you’re planning an event around the Olympics, you could get cover specifically for this, and this only.
Cost-saving Cancellation Insurance tips:
Insure against specific risks:what’s your worst “what if”?
Insure a specific period of time
Insure specific parts of your budget: areas where cancellation would really impact your revenue – for example your highest earning tour, or your biggest performer.
Get the cover in place in good time - 3 months in advance for better rates – but 14 days as a minimum.
The arts present some major implications for insurance, so it’s important to work with a specialist broker who understands your work. An experienced and well-connected broker should be able to secure rates of less than 1.0% at the moment, which was unheard of a few years ago.
“With our specialist knowledge and experience in the arts we can present a more realistic picture to the insurer of the actual risks arts organisations face, and achieve better terms. Cancellation Insurance isn’t a no-brainer – you need to be smart about it – but rates are excellent at the moment and it could really save your bacon”, says Paula Hawthorne, Head of Performing Arts at La Playa
Godfrey L, Private Client