Do you need festival insurance?
Discover everything you need to know about festival insurance, including whether you're protected if you need to cancel a festival, plus other inclusions and exclusions.
Key points
Festival insurance is designed to protect event organisers from financial losses due to unforeseen circumstances like bad weather, equipment damage, or attendee injuries
Cover includes event cancellation, public liability insurance for injuries or property damage, and property damage for venue or equipment
Exclusions in festival insurance typically involve weather-related cancellations not classified as extreme, non-appearance of performers for minor reasons, and financial failure of suppliers
What is festival insurance?
Festival insurance is a specialised type of cover designed to protect event organisers from potential financial losses associated with hosting a festival. This insurance is vital as it protects against unforeseen circumstances such as extreme weather, equipment damage, or injuries to attendees.
What is included in festival insurance?
Festival insurance offers several cover options to protect event organisers from unexpected issues. Below is a detailed list of what is typically included:
Coverage for event cancellation: Reimburses costs if the festival is halted due to severe weather, security threats, or key performer withdrawal. It is essential for reducing financial losses from prepaid expenses
Public liability insurance details: Covers claims related to injuries or property damage at the festival. It includes legal fees and settlements, crucial for maintaining the financial health of the organisers
Property damage coverage: Addresses damage to the venue or rented equipment. It covers accidental damage to sound systems or vandalism at the event site, aiding in managing repair or replacement costs
Do organisers need festival insurance?
While event insurance isn't a legal requirement in the UK, it's always recommended when hosting a festival. This ensures a financial safety net for mishaps. Insurance also protects against unexpected costs like weather cancellations or key performers not showing up, so it's in your best interest to have this form of protection as a festival organiser.
What types of festivals require events insurance?
Music festivals and concerts typically need events insurance. This insurance protects against cancellations, equipment damage, and liability claims. Known for large crowds and complex logistics, these events find such insurance crucial.
Cultural festivals with live performances should also consider investing in this insurance. These events often combine music, dance, and other arts, attracting diverse audiences, so it makes financial sense to make sure you're covered by insurance.
The insurance needs vary greatly depending on the festival's scale and type. Smaller, community-focused events may need less comprehensive coverage. In contrast, large-scale international festivals face higher risks and more complex regulatory requirements.
What is not covered by festival event insurance?
Festival event insurance does not cover every possible mishap. Understanding these exclusions is crucial for organisers to prepare adequately. Here are some typical policy exclusions:
Weather-related cancellations: Unless extreme conditions like hurricanes are explicitly included
Non-appearance of performers: Due to reasons not listed in the policy, such as minor illness or transport delays
Financial failure of suppliers: This includes caterers or tent providers going out of business before the event
Damage due to wear and tear: On equipment used during the festival
Claims related to war, terrorism, or nuclear risks: These are generally excluded from standard policies
The reasons behind these exclusions often relate to the predictability and controllability of these risks. For instance:
Weather conditions are too variable and can be a frequent cause of festival disruptions, making them risky to cover
The likelihood of performer non-appearance can be mitigated by organisers, hence it's often not covered
To manage risks not covered by insurance, festival organisers can:
Develop a comprehensive risk management plan that includes alternative arrangements for weather disruptions or performer cancellations
Establish a reserve fund to handle unexpected financial burdens that may arise from uncovered risks
Engage in thorough vetting and contracting processes with suppliers to minimise the risk of financial failure
By understanding and preparing for these exclusions, festival organisers can ensure a smoother execution of their event, even when faced with unforeseen challenges.
How much will UK festival insurance cost?
The cost of festival insurance in the UK depends on various factors. The size of the festival greatly affects the average cost. Smaller events may have lower premiums. Larger festivals, with thousands attending, could face higher charges.
Several other factors influence insurance premiums. These include the event's location, its duration, and the activities involved. High-risk activities, such as fireworks or live performances, can raise the premium.
The organiser's experience and claims history also impact the cost. To lower insurance expenses, organisers can choose package deals. They can also enhance safety measures or use comparison sites to find the best rates.
Will insurance cover festival cancellation costs?
Some insurance providers cover the cost of cancelling a festival, depending on the reason. Insurance typically covers unforeseen events like extreme weather, national emergencies, or key personnel's sudden illness. However, low ticket sales or a change of mind are not usually covered.
For example, if a severe storm leads to a festival's cancellation, most event-specific insurance policies will likely cover this. Conversely, cancellations due to poor planning or budgeting are generally not compensated by insurers.
To ensure maximum coverage, review your insurance policy carefully before purchase. Examine the fine print and discuss any uncertainties with your insurer.
Choosing a comprehensive coverage option, including cancellation insurance is advisable. This addition can protect against a wider range of cancellation causes, providing greater peace of mind.
