COVID-19 has caused several events around the world to be canceled and it is triggering many business disputes. Many of these events were insured by special event insurance, but that does not mean those responsible for the events are going to get reimbursed for their loss.

Some of the world’s biggest and best-known events have been canceled, but the virus has affected smaller events and businesses of all sizes.

What do you need to know about the business disputes that have resulted from coronavirus event cancellation?

Special Event Insurance May or May Not Offer Protection

Unfortunately, many people whose events have been canceled have learned the hard way that their special event insurance is not going to offer any sort of compensation in this case.

Standard event cancellation insurance policies usually cover cancellation due to events beyond your control. This might seem like a worldwide pandemic would fit this description, but it does not. “Beyond your control” usually means an act of God or other circumstances that damage the venue.

If you have “all-cause” or “epidemic coverage,” there is a better chance you will get reimbursed, but this is a specific type of policy. They also tend to be difficult to get.

The only sure-fire type of insurance that would help you, in this case, is “communicable disease coverage.” And odds are not too many event planners bothered to purchase a policy such as this.

Also do not think you can rush out now and get a policy for a future event that would cover coronavirus. In most cases, COVID-19 is being excluded from news event coverage. It is just too risky for insurers.

What Should Ticket Holders Do?

If you are someone who had a ticket for an upcoming event or you are responsible for making decisions concerning ticketholders about an event canceled because of coronavirus, there are a few things you should know.

Most event organizers are refunding money for tickets purchased. Most are making it easy, too. Some are asking that money already be spent be given as a donation, depending on the event, but in general, ticketholders will be reimbursed for the money they spent on a now-canceled event. Some are even offering automatic refunds and you will not even need to make a request.

But here is the caveat: has the event been canceled or postponed? That is going to play a major role in how easy it is to get your money back and if you are the event organizer, how necessary it is for you to reimburse ticket holders.

All of the confusion surrounding the virus and what the future holds is what is triggering several business disputes. People do not know what to expect, organizers do not know how to handle things, and understandably, everyone wants money, either returned to them or left with them during potentially lean times.

If you find yourself involved in a coronavirus business dispute because of a canceled event, Hardy Smith can help. Contact him at 520-403-8786 or by email at [email protected]

E. Hardy Smith Lawyer & Mediator
www.azlawsmith.com