With COVID-19 declared to be a pandemic, event cancellation has become a hot topic. As a result, event organizers have been reviewing the Force Majeure clauses in their contracts and lawyers are dusting off older legal texts to help with interpretation of this historically common contract clause. Event Cancellation Insurance (ECI) policies also must be reviewed for coverage, but in these unusual circumstances, there may be considerable uncertainty for both insurers and insureds.
ECI is a type of insurance product designed to protect revenues and expenses associated with insured events that must be cancelled or postponed as a direct result of unforeseen circumstances, or an unexpected cause that is beyond the control of the organizer or attendees. The types of events that are often covered include, but are not limited to, meetings, weddings, trade shows, conferences, exhibitions, performances, concert tours and sporting events.
