Community groups and event operators put significant effort into organising and coordinating events for their communities. Whatever the event, we recognise the commitment and expense involved in delivering a great experience for your communities.

Consider all of the costs involved, including:

  • Advertising and promotional activities
  • Equipment hire
  • Purchase of goods
  • Merchandise
  • Venue hire
  • Printing costs
  • Talent/performers
  • Security
So, what would you do if your event had to be cancelled or abandoned unexpectedly and beyond your control?

This is where Event Cancellation insurance can protect your organisation's financial investment in community-based events, festivals and conferences. Should adverse weather or other unforeseen circumstances beyond your control cause the necessary cancellation, abandonment, postponement or interruption of your event, this policy can cover the financial loss suffered by your organisation as a result.

What is the loss for event organisers?
Financial losses:
  • Irrecoverable expenses
  • Loss of deposits
  • Reduction in revenue
  • Refund of ticket sales, sponsorship or grants
  • Return of stallholders fees
  • Financial penalties
Failure to see a "return on investment"
  • Revenue that would have been made as a result of holding the event.
Loss of funding or sponsorship for future events
  • This can include funding opportunities or sponsorship deals that may be compromised as a result of cancelling the event.
Case studies:
  • Adverse weather caused the cancellation of music festival prior to headline act performing. Performers' fees ($3,200) had to be paid.
  • Heavy rain caused flooding at Community Fair. Irrecoverable expenses ($70,000)
  • Adverse weather prevented setup at Food & Wine Festival. Forfeited deposits ($87,000)
What can be covered by Event Cancellation?
Adverse Weather

Rain, flood, high winds, bushfire, excessive heat, snow, lightning, earthquake, cyclone or storm.
A level of adverse weather which impacts the safety of participants or attendees at an event.


Terrorism or bomb threat, including both threat of and the actual act.

People Risks

Such as performer is unable to appear due to illness, accident or death.

Venue Risks

Such as power failure, failure of transport services.
Inability to setup in preceding days.
Car parking facilities unusable due to soft grounds.

Political Risks

Civil unrest caused by protests or demonstrators.

Forced event closure

Closure by public authority due to health and safety risk.
*Note: Excludes communicable or infectious disease, including COVID-19.

Identification and assessment of risks

As an event organiser, it is paramount to be prepared for sudden and unpredictable occurrences which could impact your event and make it unsafe for your attendees.

We can work with you to help ensure you are aware of and prepared for the risk management aspects of your events.

Who should take out Event Cancellation Insurance?

Event Cancellation insurance is generally appropriate for events with a budget of $30,000 or higher, and is more affordable than you may think.

When should you take out Event Cancellation Insurance?

As a guide, you should be taking out Event Cancellation cover at least 2 – 3 months prior to an event.
In order to obtain the best possible terms, we recommend placing cover as far in advance as possible.

The policy also requires that you take all reasonable actions to avoid or mitigate loss in relation to the cancellation.

What is excluded in Event Cancellation Insurance?

Event cancellation insurance may help to cover costs for events cancelled beyond your control, but in some cases, the cover won't respond, including:

  • Circumstances in existence prior to the policy period
  • Shortfall in attendance, including lack of ticket sales
  • Insolvency or financial failure
  • Non-compliance with the requirements of any law
  • Communicable or infectious disease, including the COVID-19 Pandemic.
How to arrange Event Cancellation Insurance?

To find out more information about whether Event Cancellation Insurance is right for your upcoming event, contact the LCIS team to discuss your requirements. You will be required to complete a proposal form and provide an event budget along with any other relevant event information.


Event Cancellation policies can be a good option to cover you against financial loss resulting from an event being cancelled, postponed and abandoned.

Key Takeaways:

  • Protection against unforeseen, unexpected or unlikely perils that can adversely impact an event.
  • Policy will respond to a financial loss should an event be cancelled, abandoned, disrupted or postponed due to circumstances outside of the organiser's control.
  • Provides cover for event costs & expenses even for loss making events, returning you to the same financial position had you not undertaken to host the event.
  • Policy will cover additional costs paid to avoid or reduce a loss.
  • Cover can be provided for a wide variety of events and tailored to the specific requirements and sensitivities of the event or organiser.
  • Premium cost is generally within 2% - 3% of the event budget.
The above statements are issued as a matter of information only and for full terms and conditions, you should refer to the policy wording.

Connect with Local Community Insurance Services today!

1300 853 800