Special Event And Travel Cancellation Risks

Special Event and Travel Cancellation Risks
The beginning of​ the​ new millennium will be remembered as​ one of​ the​ worst times for event organizers world-wide .​
a​ sequence of​ disastrous events caused hundreds of​ thousands tourists to​ cancel their holidays .​
Weddings,​ family events,​ children's summer camps,​ and thousands of​ commercial events and conventions were cancelled .​
Hurricanes,​ earthquakes,​ tsunamis,​ terror attacks caused not only direct vast damages but also collateral damage to​ millions of​ individuals and businesses .​

The resulting financial damage is​ huge .​
Empty hotels,​ lost deposits,​ travel agencies with no income,​ airliners that fly almost empty,​ lost income to​ wholesalers,​ organizers and many individuals – and the​ list goes on​ .​
The estimated losses are stated in​ billions of​ dollars (according to​ the​ publications of​ the​ numerous insurance companies).
This scenario is​ familiar to​ the​ insurance industry: those companies who write Travel Insurance that includes a​ Cancellation Fees Clause; those who write Special Events with Cancellation Fees Clauses; and those insurance companies who write Political Coverage (many of​ which are state-owned organizations).
Although this scenario is​ well-known,​ the​ actual loss sustained by the​ insurance industry is​ by far lower than the​ actual loss sustained by the​ tourism industry,​ the​ canceling individuals and many others .​
The reason is​ Awareness .​
In the​ past century the​ world witnessed many events,​ which should have caused people to​ understand the​ need to​ protect their investments .​
Although rates in​ the​ past decades have been quite reasonable,​ most prospective customers did not purchase any kind of​ protection .​
The saying,​ It won't happen to​ me,​ led millions of​ travelers all around the​ world to​ refrain from purchasing travel insurance (or to​ ensure that their cover includes a​ Cancellation Clause),​ which resulted in​ somewhat higher premium rates,​ as​ the​ spread of​ risk was smaller than the​ potential .​
Most of​ those organizing events – private or​ commercial – ignored history,​ and smiled when nothing happened and the​ event was over .​
For those who saw the​ risk materialize,​ no smile could help.
The insurance market can only offer the​ products .​
It cannot purchase them instead of​ the​ at-risk customers .​
However,​ it​ is​ important to​ elevate the​ level of​ awareness in​ the​ general public,​ to​ ensure better protection to​ the​ public.
The big numbers look a​ bit remote from the​ individual whose story is​ the​ wedding reception of​ his son or​ daughter,​ and whose relatively small deposits for the​ reception hall and the​ caterers are now lost .​
An additional average expense of​ $100 could now save this money,​ and ensure his ability to​ celebrate the​ occasion at​ a​ later date.
The small stories are those that should alert you,​ the​ reader – personally or​ as​ an​ insurance broker or​ agent – to​ ensure that next time,​ you​ will not be caught without protection.
Special Event And Travel Cancellation Risks Special Event And Travel Cancellation Risks Reviewed by Henda Yesti on August 15, 2018 Rating: 5

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