Event contingency insurance

Compulsory public liability, cancellation and suspension, prize indemnity and special cover for any type of event

Organising an event involves committing a financial investment that, in many cases, cannot be recovered if something goes wrong. Event contingency insurance is designed to protect that investment against the two categories of risk that every organiser assumes: liability towards third parties during the event, and their own financial losses if the event cannot take place as planned.

At Oller Brokers we manage contingency cover for all types of events — from a corporate convention to a multi-day festival, from a golf tournament to a sports club season — with access to specialised insurance markets of this type at European and international level.

Coverages of event contingency insurance

1. Event cancellation and suspension

Event public liability insurance is the most common cover and, in virtually all cases, legally mandatory. It protects the organiser against claims for personal injury, material damage or financial loss caused to attendees, staff or third parties during the organisation, set-up, running and dismantling of the event.

In Spain, Law 8/2002 on Public Entertainment and Recreational Activities — together with the regulations of each autonomous community — sets the minimum insurance limits depending on the type of event and its capacity. Without a valid insurance certificate, the authorities do not grant the necessary permits to hold the event.

What does event public liability insurance cover:

Personal injury and material damage to attendees and third parties during the event
Damage to the venue or rented/assigned space
Subsidiary liability for acts of subcontractors and suppliers
Legal defence costs and court bond payments
Extension to set-up and dismantling periods

Types of events covered:

Concerts, festivals and live music events
Corporate events, conventions and trade fairs
Competitions and sporting events — amateur and professional
Theatre, dance, circus and performing arts shows
Town festivals, street parties and publicly organised events
Audiovisual productions and outdoor filming
Any public-access event or recreational activity

2. Event cancellation and suspension

Expenses covered by the indemnity:

Production and set-up costs already incurred
Fees for artists or personalities already paid or guaranteed
Venue, technical equipment and structure rentals
Advertising, communication and ticket sales expenses
Fees for contracted technical and production staff
Loss of expected profits, according to the terms of each policy

Causes that trigger the coverage:

Adverse weather conditions — rain or wind above thresholds set according to AEMET data
Non-appearance of artists or main headline acts
Subsequent administrative prohibition or restriction
Death, serious illness or accident of a key figure of the event
Damage to the venue that prevents its use
Other unforeseen causes, in policies that include this cover

A relevant technical aspect: the exact moment when weather cover comes into force varies between insurers. Some policies activate it from the start of the event; others, hours in advance. This detail can have decisive consequences in the event of a claim. It is one of the aspects we review carefully when designing each programme.

3. Prize indemnity

Prize indemnity policies transfer to the insurer the financial risk of a condition being met that triggers the right to a high-value prize. Without this cover, the organiser assumes that cost directly. With the policy, the insurer pays if the condition is met.

Hole-in-one — golf tournaments:

It covers the cost of the announced prize — usually a vehicle, a cash amount or another valuable item — if a participant achieves a hole-in-one on the designated hole. To arrange it, it is necessary to specify the designated hole or holes, the exact distance, the value of the prize and the number of participants. The recommended minimum lead time for arranging cover is two weeks before the tournament.

Sports club promotion:

It covers the financial cost assumed by the policyholder —the club, a sponsor, a town council or a local entity— if the team is promoted to a higher division at the end of the season. The terms are negotiated based on the team’s position in the standings at the time of underwriting, the competition and the insured amount.

Conditional prizes in other events:

High-value prizes in corporate events and competitions
Indemnity for achieving sporting objectives other than promotion
Conditional prizes in any event involving financial risk for the organiser

4. One-off public liability for occasional events

What can happen for a contingency policy to be triggered?

Examples:

1. Cancellation due to rain at a three-day festival

An open-air music festival has sold 12,000 tickets for its second day. Early on the morning of the concert, AEMET confirms rainfall above the threshold set in the policy during the scheduled event hours. The organiser decides to cancel the day to avoid risks to attendees. The cancellation policy, which includes weather cover activated four hours before the start, covers the production costs of that day: the main artist’s fee, the rental of sound and lighting equipment, and technical staff costs. Without insurance, these expenses would have fallen entirely on the organiser.

2. Claim due to an accident during the set-up of a corporate convention

A company organises a convention for 800 people at a venue. During set-up, a technician from a subcontracted company suffers a fall and brings a joint liability claim against the organiser. The event public liability policy, which includes cover for set-up and dismantling and subsidiary liability for subcontractors’ actions, covers the organiser’s legal defence costs and, where applicable, any compensation due. Without this extension, the organiser would have been left unprotected against the claim.

3. Hole-in-one at a charity golf tournament with a €30,000 prize

A golf club organises its annual tournament with a €30,000 prize for the player who achieves a hole-in-one on hole 7, a par 3 of 160 metres. The organiser takes out prize indemnity insurance two weeks before the tournament. On the final day, one of the participants achieves the hole-in-one. The insurer pays the full prize to the winner. Without insurance, the organiser would have had to assume that amount directly, putting the financial viability of the event at risk.

4. Non-appearance of the main artist at a show

A promoter hires a top-tier artist for a concert of 2,000 attendees. 48 hours before the event, the artist cancels due to a certified illness. The organiser, who has already incurred 70% of the event costs — production, advertising, venue rental and technical deposits — activates the cancellation policy under the non-appearance cover. The insurer covers the non-recoverable fixed costs. The organiser can refund ticket sales and close the event without bearing the full production loss.

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