June 30, 2020 In Uncategorized

9 Key Points To Consider When Dealing With Event Cancellation Insurance Policies

9 Important Points To Consider When Buying Special Event Cancellation Insurance. 


  • Get a copy of the entire insurance policy. Don’t rely on a coverage selection sheet or certificate of insurance. Get the complete policy.
  • Read the insurance policy. Read it again.
  • Pay attention to timing no proof of loss so the policyholder knows when to file a claim. Better early rather than late.
  • Pay attention to what types of coverage are provided and what type of loss is EXPLICITLY excluded.
  • Keep in mind, two general insurance rules:
    • Ambiguities in insurance policies are construed in favor of the insured and against the insurance company.
    • The insurance company has the burden of proof on the applicability of exclusions from coverage.
  • Don’t rely on what you read in the press about insurance issues such as Force majeure and other insurance exclusions. Insurance law is determined by state laws, and that means many different results depending on the state where the policy issued, in what state loss occurred, and in what state the claim is made. The insurance company public relations associations are filling the popular press with stories of how COVID-19 claims are not covered.

  • Willis Re, an insurance broker and advisor to insurance companies has released information determining COVID-19 claims, including claims for event cancelation, are expected to pay-out in a range of $30 billion to as much as $100 billion in claims.
  • Insurance companies have sold prior to mid-January 2020, event, and cancelation insurance specifically offering coverage for cancelations due to communicable diseases.
  • Like your health, it’s better to get a yearly check-up from an internal medicine doctor rather than ignoring a health problem and waiting until you need surgery. Seek legal counsel early from an attorney experienced in policyholder litigation for the insured to protect its interest.

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