Hong Kong Event Insurance in 2023
With the Hong Kong Rugby 7’s and Clockenflap just around the corner, and a massive promotional campaign to encourage overseas tourists to visit Hong Kong, there are signs of vibrancy in our city. In fact, looking at the event calendar for 2023, suggests that 2023 could be the most active year in Hong Kong since before the start of the Covid-19 pandemic.
If you are busy looking at preparations for your own event, even with a sense of normality returning, it is important to be prepared.
And that means insurance.
Most event insurance is completely optional – you don’t need to take any out unless you, as the promoter/organizer, wish to do so. However, “event insurance” covers a wide umbrella of risks, and can ensure that even with circumstances beyond your control, you’re not personally liable or forfeiting any deposits you may have paid.
Public Liability can be essential
Any event that occurs outside your home in a rented or leased space should always have public liability insurance protection.
Depending on the venue you’re holding your event in, this could actually be a rental requirement. At Leisure and Cultural Services Department Facilities, for example, performances or cultural gatherings normally have to have some form of Public Liability insurance protection before being able to access the space for their event.
Public Liability Insurance covers you, as an event organizer, from your risk of a third party suffering personal or property damage because of your negligence.
Even with a limited number of participants or attendees at an event, there is always the risk that human nature rears its head and things go awry. This is true of even the most carefully managed concerts and sporting events, where accidents can occur despite all the best care in the world – often with deadly or serious outcomes.
So, if a passerby is hit with Pyrotechnics, or an LCD screen and damages the venue, Event Public Liability Insurance Protection ensures that you are not left personally financially responsible. If you are outright negligent there may be criminal proceedings, but with Public Liability protection you will not have to pay any claims resulting from your negligence out of your own pocket.
Event Cancellation Insurance
Aside from Liability Protection, Cancellation Coverage is the other pillar of Event Insurance.
While many promoters choose to limit their costs and only take out public liability protection, Cancellation Insurance secures your expenses should you need to cancel your event.
It should be noted that not all Event Cancellation Coverage protects against every instance of cancellation – there are some specific cancellation scenarios we’ve outlined further down this article that normally need to be purchased in addition to basic “event cancellation protection.”
Having said that, the major exclusions for cancellation coverage are:
- Terrorist Attacks not at the event location
- Insolvency of any business connected to the event
- Social conflicts between the insured(s) and/or policyholder
- Communicable Diseases (unless otherwise stated)
- Strikes announced prior to purchasing the policy.
Key Person Non-Appearance, and Weather Cancellation insurance for outdoor events must be purchased separately and are not included on Event Cancellation Coverage as standard benefits. These benefits are normally obtained in return for an additional premium. Similarly, it may be possible on a case by case basis (at the insurers discretion) to obtain coverage against cancelation for Communicable Diseases which develop in the future.
Having cancellation insurance coverage for your event ensures that you are able to receive reimbursement for:
- Irrecoverable expenses including deposits
- Producers/Organizers Profits (if an additional premium has been paid)
- Additional costs incurred
Having the security of knowing that even if a situation develops beyond your control that forces you to abandon your event can be critical in how you choose to produce it.
But what about the exceptions? The situations covered beyond the standard Event Cancellation Protection?
Key Person Non-Appearance Insurance
Russell Peters, OneRepublic, JJ Lin, and Creamfields are all massive highlights to kick off Hong Kong’s event schedule for the year, but all of these events rely on the talent which is on stage.
What happens if that talent can’t perform? Or is unable to?
Its no secret that touring artists often have extremely demanding schedules. Coupled with the fact that life happens – people get sick, deaths occur in the family, and flights are simply missed – any event with a critical or key performer runs the risk of being ruined if that person can’t show up.
From refunded tickets, to venue costs, to all the other overhead associated with putting on that show, when people key to the show fail to appear it is normally the organizer who is left holding the bag, and spending more money.
With Non-Appearance coverage under a Hong Kong event insurance policy, should a critical performer or attendee fail to show up for your event (due to a covered reason), then the insurance covers your prepaid costs or any payments due from canceling the event. It is also possible to include expected profits on this coverage, ensuring that as an organizer you don’t lose the revenue you were expecting to generate from the event.
At home, this type of insurance benefit is very useful with relation to Wedding Event Insurance.
If a Bride or Groom fails to appear at their nuptials then the wedding is likely not proceeding and someone is out a significant amount of money if they haven’t taken out non-appearance protection.
Event Weather Cancellation Insurance
For many “Umbrella” (if you’ll forgive the pun) event insurance products, Inclement Weather Protection is included as standard if the event is taking place indoors. This means that with an Event Insurance policy including weather cancellation protection you would be reimbursed for the cancellation of your indoor event due to any of the following:
- Severe or Torrential Rain (Black Rainstorm Warnings)
- Hail and Blizzards
- Natural Disasters
Given that many Hong Kong events are held during the spring and summer which are generally the rain and typhoon seasons, there is a risk of any event held during these times being postponed or cancelled due to weather. If you have already set up and are ready to host, this can cause a really big headache when you have to tear down your fixtures because of weather.
Weather cancellation for indoor events and, if taken for an additional premium, outdoor events covers you against the reimbursement of prepaid money, any expenses you may incur to return the venue to its normal state, and expenses associated with the return of goods and equipment to vendors.
Taking a risk with Hong Kong’s weather could mean that you risk losing a great deal of money if you can’t hold your event – Event Weather Insurance takes care of this.
Event Insurance in Hong Kong
The options for event insurance in Hong Kong are almost limitless, and you can tailor your coverage to meet the needs of your specific event. From Photographic/Video cover, Gift protection, and even a dress benefit for Wedding Event Insurance, through to Personal Accident, Fixtures and Fittings, and even Musical Instrument protection for concerts, Event Insurance is a bespoke coverage solution to ensuring that your risks as an organizer are protected.
If you are considering putting on an event in Hong Kong in 2023 and would like to learn more about your insurance options, please Contact Us and speak to one of our expert independent advisors today.
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