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IAEE-SPONSORED EVENT CANCELLATION
INSURANCE
AFTER HURRICANE SANDY
BUTTINE EXHIBITION & EVENT INSURANCE33 E 33d Street, 5th FLOOR
NEW YORK, NY 10016
T 800.964.4454 ext 21 | F [email protected] | www.buttine.com
OBJECTIVES:• Effects of Superstorm Sandy.• What is Event Cancellation Insurance
and how it helps you?• When to buy coverage and what it
costs?• How claims are paid?• How to purchase this insurance?
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EVENT CANCELLATION INSURANCE
• A spike in demand for Event Cancellation Insurance • Record number of NE region
cancellations and interruption losses • Rates for events start to increase
due to projected Re-insurance (The Insurance Company’s Insurer) rates
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THE SHORT-TERM EFFECTS
• A shift in the perception of Event Cancellation Insurance from a “selective” to a “compulsory” mindset for many
• Event Organizers will need to re-evaluate “Contingency Plans”
• The cost of holding events at high risk locations – FL during hurricane season, in the NE or Midwest in winter or on the West Coast – increase
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THE LONG-TERM EFFECTS
“Event Cancellation Insurance – a form of customer service”
• Pays your anticipated profit• Pays incurred expenses• Allows return of sponsorships, exhibitors
fees and education/seminar charges
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EVENT CANCELLATION INSURANCE
• Security from this coverage adds value and helps grow your event…
• It’s security to investors by providing a degree of certainty that their investment will be repaid.
• It provides security to owners (individuals, corporations, and non-profits) that expected profits will be there in the event of a covered claim.
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EVENT CANCELLATION INSURANCE
(“WHAT’S IN IT FOR ME”)
No one wants an event cancellation so …• It pays the incremental cost of “making it
happen” in the event of a loss• Pays the cost of rescheduling the event
in same or new location• Pays the cost of combining a cancelled
event with the follow-on event
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EVENT CANCELLATION INSURANCE
• When you have an economic interest in event: i.e. when ’13 event concludes and you are selling space for ’14 event, or sign a lease and pay a venue deposit.
• The rate is the same 2 months away from your event as it is 12 months – the more in advance you buy, the more covered days you get.
• Best way is to buy two – or more years’ in advance and lock-in today’s historic low rates and to insure multiple years’ worth of revenue.
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WHEN TO PURCHASE EVENT CANCELLATION INSURANCE
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WHAT EVENT CANCELLATION INSURANCE COVERS
• Rates are determined by:
Location, Event Dates, Profitability
• Rates are usually less than .22% of booth/conference fees – more for Earthquake and areas prone to adverse weather
• You can structure policies to ‘fit your needs and budget’ by installment payments for large events or multi-year policies
• Policy Limit must equal the show revenue – (usually)
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EVENT CANCELLATION INSURANCE COST
• Use the IAEE sponsored plan with Buttine Exhibition and Event Insurance– Has a 30+ year history of successfully paying
claims for IAEE members – Gives member discount– Provides direct access to the insurer
• Develop a Contingency Plan and share it with your broker
• If you know that your event can be rescheduled, be sure to let us know
• Understand your insurance provider’s history in this niche – Buttine is no newcomer to this type of policy
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TIPS FOR BUYING EVENT CANCELLATION INSURANCE
Event Details:• Event Dates• Name of Venue• Event Budget• Venue Contract • Loss History
With this information, you should get a proposal within 72 hours.
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INFORMATION NEEDEDTO GET AN EVENT CANCELLATION
PROPOSAL
The Principles …
Budget: Gross Revenue $ 1,000,000 Expenses $ 750,000 Profit $ 250,000
A claim example – total loss occurs before opening , after fully set up ...– Paid 100% exp. before show opening $ 750,000– Cash in Bank @ loss $ 250,000– Initial Refunds @ total loss a. $ 250,000– Ins Co 1st Payment b. $ 750,000– Second set of refunds c. $ 750,000 – Now all refunds are
made and all incurred expenses are paid!
– Ins Co 2nd Payment c. $ 250,000 – This is your anticipated profit !
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EVENT CANCELLATION INSURANCEHOW A CLAIM IS PAID
• Call insurance broker or company ASAP!• Designate one staff member & an alternate as
‘spokespersons’. • Tell exhibitors what you will do after agreement is
reached with insurer. But, your obligation to return fees exists regardless of whether you have insurance
• Document all expenses and actions taken to preserve the show.
• Get name of adjuster, call him/her and make sure they understand your position and plan.
• Give regular updates to adjuster on status.
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HOW TO FILE A SHOW CANCELLATION CLAIM
• You have to show your loss• A good short statement goes a long way
(who, what, where, when, why)• No gratuitous information • “Just the facts, ma'am” Sgt. Joe Friday,
Dragnet• Good information may allow a quick
settlement and avoid protracted adjustment process. Attendance history is key!
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CLAIM FORMS AND STATEMENTS
• No standard forms • To support your case – cell phone photos help, keep local newspapers, weather reports, other evidence. • Collect names, employers, phone numbers & addresses of all witnesses.
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CLAIM FORMS AND STATEMENTS
This concludes our presentation … thank you for attending
EXPO! EXPO! and visiting our booth.
… Call us with your questions?
Paulette A Norman [email protected] | 847.268.7100
Jack M Buttine [email protected] | 212.697.1010 ext. 21
BUTTINE EXHIBITION & EVENT INSURANCE
New York, NYwww.buttine.com
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EVENT CANCELLATION INSURANCE
