The contingency insurance market, which includes coverage for cancellation of special events, may still see multi-billion dollar losses related to COVID-19, possibly as high as $ 6 billion, according to experts speaking on Wednesday.
Peter Rossow, Commercial Risk, Health Benefits, Retirement and Reinsurance Solutions for Aon PLC, and Ryan McGuinness, Managing Director, Risk Management in Daytona Beach, Florida, for the National Association for Stock Car Auto Racing, spoke about the elements in such an insurance Wednesday at the Risk & Insurance Management Society Inc conference 2021, which was held practically.
Contingency insurance can to a greater extent include things like hole-in-one insurance, where an insurance company covers the price for the price if the performance is achieved; or even a contract bonus for an athlete who makes the playoffs, Rossow said. Covered costs can range from damage to the scene of the event and adverse weather to terrorism, he said. the kind of policy that NASCAR has in place, McGuinness said.
Event cancellation policies are usually all risk policies, said Rossow, for which insurers want to know things like the location and time of the event, among many other variables. including security. Although they are usually associated with special events such as sports, such policies can also cover trade features such as RIMS, he said.
Both speakers emphasized the importance of contractual clarity with all parties and suppliers associated with an event and said that insurers even want to see these contracts as part of their review.
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