Sports clubs and event and conference organisers are not likely to be able to claim on insurance policies for coronavirus related cancellations.
Event cancellation insurance is increasingly popular due to the huge potential costs involved if a major event is called off due to unforeseen circumstances.
Sporting fixtures across the globe have been abandoned due to the COVID-19 pandemic and festivals and conferences here in Australia have also fallen victim to the virus.
We understand that most event cancellation policies contain a communicable diseases exclusion although an extension can be written into the policy wording. Now that the outbreak is a “known event” it is impossible to get cover specifically for COVID-19.
Even if insureds arranged communicable disease coverage prior to the outbreak, insurers are unlikely to pay claims if an event cancellation is based on a decision by organisers, rather than a clear direction by authorities.
Sportscover Australia, the specialist underwriting agency that has been operating since 1986 who insure participants and players, coaches and instructors, clubs and teams, gyms and fitness facilities and associations said that cover for a communicable disease would generally require an extension to a standard policy and an additional premium – something that few policyholders had the foresight to arrange.
Sportscover went on to say that the disease has taken the world by surprise and had not been foreseen and people haven’t necessarily factored that into their insurance arrangements. They have received a growing number of enquiries about the virus, particularly in relation to travel arrangements for athletes and sports teams as well as events that are being cancelled or postponed.
If you want to find out more, contact us to speak to one of our insurance specialists today.
SOURCE
Insurance News: What you need to know about COVID-19 Event Cancellations (Procurement Australia)
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