Insurance is a crucial aspect of event planning, especially for large-scale concerts and entertainment events. Recently, insurers are facing millions of dollars in claims after a foiled attack forced three Taylor Swift concerts in Austria to be cancelled. The concerts in Vienna were expected to draw in 195,000 fans, many of whom had travelled from abroad to see the pop superstar. The cancellation was a significant blow to both fans and organisers, with Barracuda Music, the concert organiser, announcing that all tickets would be refunded within 10 days.
Taylor Swift is known for rarely cancelling concerts, making her a popular choice among insurers. Her celebrity status and successful track record mean that most specialist event cancellation insurers in London would have been involved in covering her tour. Event cancellation insurance is typically purchased by organisers of large sporting and entertainment events, with much of it being insured through the Lloyd’s of London market by a consortium of insurers.
While militant attacks are often excluded from event cancellation policies, policyholders can buy extra cover specifically for such incidents. In this case, a standalone terrorism cancellation insurance policy would likely have been triggered due to the known potential terrorism event at the Ernst Happel Stadium in Vienna. The extent of cover on the concerts and the resulting losses from the cancellations are still being assessed, but it is estimated that the losses could be in the tens of millions of dollars.
Despite the setback, insurers are likely to be comforted by the fact that the concerts could potentially be rescheduled. The cover was structured in a way that insurers would not be fully liable for the cancellation of the entire tour. Event cancellation insurance typically covers various aspects such as delay, venue rental, artist’s pay, and ticketing, providing a comprehensive safety net for organisers and artists alike.
Looking ahead, insurers may consider restricting coverage for cancellation insurance due to terrorism, given the increasing political tensions around the world. However, industry experts believe that this one-off concert claim is unlikely to have a significant impact on the insurance marketplace. Extra security measures may be implemented for future events, but British police have reassured that there is no indication of any impact on Swift’s upcoming shows at Wembley Stadium in London.
In conclusion, event cancellation insurance plays a vital role in mitigating risks for organisers, artists, and insurers in the event of unforeseen circumstances. While the cancellation of the Taylor Swift concerts in Austria has resulted in significant financial implications, the industry remains resilient and prepared to handle such challenges in the future.
