Headed to a music festival this summer? It’s the insurance for these events, rather than the music, that is drawing the headlines.
From Bloomberg, via Claims Journal:
“Big events, those the caliber of Coachella and Bonnaroo, typically take on at least five kinds of insurance policies: cancellation, including terrorism coverage, general liability, umbrella policies, workers’ compensation, and business auto coverage.”
FiveThirtyEight asks: what’s the typical cost of cancellation insurance for a music festival? Bloomberg has the answer:
Unpredictable weather, the threat of terrorism, and the demographics of festival attendees, are some of the factors that make music festivals one of the hardest risks to insure.
From the Argo Global blog, a post by David Boyle, contingency class underwriter, offers this perspective on why: Without intervention, festivals are likely to disappear from insurers’ books:
“Threats to festivals are not isolated to the increasingly unpredictable weather. Terrorism is now a very real threat to high profile events which often lack the security procedures of more permanent crowded places.”