Cover Overview – Sporting Event Cancellation

June 9, 2014

Planning a sporting event can feel like juggling a million things at once—you need balance, precision and expertise to keep things moving. But it only takes one random mishap to interrupt your rhythm, causing everything to come crashing down and threatening to cancel your event.

Whether the event is big or small, professional or amateur, you should plan for all issues and forge ahead, making sure the event goes on despite whatever snags pop up.

To make it easier to plan your sporting event and protect it from cancellation, be sure to secure a comprehensive event cancellation insurance policy.

What It Covers

Event cancellation policies insure against losses arising from cancellation, interruption or postponement of a scheduled sporting event. Because there are a myriad of hazards capable of disrupting an event, policies vary widely from insurer to insurer. They are typically bespoke, tailored for each organisation’s unique risks, so make sure to choose one that covers every hazard your organisation faces.

The financial loss covered by your policy will depend on the terms you and your insurer agree upon. Event cancellation insurance can generally cover the following losses associated with cancellations, interruptions and postponements:


Purchasing an event cancellation insurance policy is not a cure-all—it will require some work on your part to ensure the policy stays valid. Most insurers require the insured to take certain steps, such as instituting risk management programmes, to minimise financial losses resulting from cancellation, postponement or interruption of a sporting event. Be sure to undertake a risk assessment and implement any other internal programmes that can help your organisation recoup cancellation losses.

The Risks

Sporting event cancellation, interruption or postponement can happen for a variety of reasons, only some of which you can anticipate and mitigate. Policies can cover cancellation resulting from the hazards listed below:


Cover may also extend to any costs stemming from broken contractual agreements because of the event cancellation.

The Exclusions

Although event cancellation insurance is typically tailor-made for each organisation, resulting in a multitude of diverse policies, there are some exclusions shared by most insurers. The following causes of cancellation, interruption or postponement are generally excluded from most event cancellation policies:


Some of these exclusions may be covered depending on the insurer and the nature of your event. For example, if your event, such as a boxing or tennis match, hinges on the appearance of only a select few athletes, it may be prudent to obtain non-appearance cover to ensure that the absence of some key players does not spell disaster for your whole event. Work with your insurer to create a policy that is best suited to your organisation and its risks.

Bespoke Is Best

Because event cancellation policies are so specific, make sure you scrutinise your organisation and its events to pinpoint exactly which risks you need to insure. Without a comprehensive assessment of your organisation’s hazards, you risk leaving gaps in your cover with the potential to undo an entire event. Let the insurance professionals at CLA Insurance help brace your organisation against the numerous hazards threatening to cancel, interrupt or postpone the sporting event you worked so hard to organise.

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