Most existing insurance policies do not insure against people staying home out of caution or sponsors dropping out.
The outbreak of coronavirus has led to the cancellation of many events resulting in losses for publishers, as insurance companies refuse to cover. While publishers are seeking digital alternatives or hoping to reschedule, it might not be feasible or have the same impact as a physical experience.
Publishers worried about event performances should negotiate with venue owners to minimise their losses. More than 90% of the budgets allocated to events is spent within the first two quarters of a year.
Publishers who are relying on insurance coverage to bear the losses for last-minute cancellations may not be automatically covered. While the Majeure clauses in insurance policies address unforeseeable circumstances, many policies might not include coverage for infectious diseases.
[5 minute read]