Source: Robin Roth, Senior Contracts Editor and Jim Doherty, Account Executive, DC Office
E-Specs: February 18, 2002

In these uncertain times more groups are seeking to purchase event cancellation insurance in addition to their general liability insurance coverage. General liability insurance protects against personal injury or property damage whereas event cancellation insurance protects against loss of revenue or increase in expense for the insured event. If your organization were heavily dependent upon convention-generated revenue, it would be a good idea to look into event cancellation insurance. Aon, which manages the ASAE Showstoppers Event Cancellation Insurance, has offered these highlights of recent changes:

• Apply early! A backlog in applications has developed because new pricing was not being quoted after 9/11 and applications are taking longer to process. In the past, last minute applications could be quickly processed up until 30 days before the event but now it is recommended that applications be filed five to six months out.
• Terrorism coverage has changed. There are new definitions of terrorism. Aon will cover up to $250,000 but coverage will not apply if the terrorist event takes place more than 25 miles from the meeting site.
• Air travel cutbacks are not covered unless due to weather or maintenance problems.
• Labor union strikes are not covered.
• The primary goal of the policy is to insure in case of fire, hurricane, earthquake, blizzard or other Act of God.
• Pricing has on average doubled since 9/11.

The plan is in a state of flux right now and the coverage for terrorism may increase or decrease as the plan evolves. If you are looking for competitive pricing for event cancellation insurance, a good place to start is to talk to your existing insurance provider, risk manager, or visit this website: http://www.asaenet.org/services/detail/1,1763,7,00.html?searchtext=SW5zdXJhbmNlIFByb2dyYW0=

(Note: This information is not intended to be "legal advice." A qualified attorney should be consulted to review all contract issues.)