Blog | | by R. Langemeyer
Insurance for Shareholders' and Annual General Meetings
Have you ever wondered who covers the additional costs of a cancelled shooting day for a Hollywood production, the costs of a cancelled or delayed Sports event or even the jackpot at a spectacular Game Show or Lottery?
As a Layman, one might think that these risks are, indeed, entrepreneurial risks that can hardly be insured. In practice there are experts, who provide cover for such incidents.
SRC Special Risk Consortium GmbH is such a specialist, who operates as an underwriting agent and exclusively works with brokers instead of a direct basis. SRC focuses on the branches sports, media and events. Event Cancellation is its core competence.
Risks for event organizers are manifold: on the one hand, there are risks that directly affect the event site, such as a digger that accidentally cuts the event’s power supply or a flooded access road; on the other hand there is a number of external problems, such as a storm making it impossible for an event to take place, or the ever-present issue of terrorism.
Possible claims scenarios can be found all over the world. Several large rock-festivals were affected in the last two years not only Germany but also in the United Kingdom. On several occasions festivals had to be interrupted for a day or cancelled altogether. While the main reason for cancellation was, indeed, adverse weather – mainly severe rainfall and thunderstorms – at least one festival had to be cancelled due to a potential terror threat
SRC, however, is looking beyond the “classic“ event cancellation insurance and has developed a special solution for Shareholder’s Meetings and Annual General Meetings.
Such events are often planned months or years before they actually take place and overheads, such as rent for a congress hall are payable before the actual event. Due to the large number of participants, General Annual Meetings can cause significant costs, which will double in case of cancellation or a re-scheduled meeting. Such meetings are even more specific since they often require the presence of board members and executive staff, who have to be covered for these incidents. Dissatisfied shareholders might vent their anger by voicing threats and depending on the branch there might be the additional issue of a terror risk.