On a typical day in Los Angeles, you don’t have to look very far to find events happening around town. Throughout the year, Los Angeles is home to lots of major events like film premieres, award ceremonies, concerts, live theater performances, conventions, and sporting events just to name a few. That’s not even counting all the private events, such weddings, that happen every year.
Whether it’s a wedding or the Oscars, events involve the efforts of many different parties, including event planners, venue owners, audiovisual technicians, food and beverage services, furniture rental services, and photographers. For these types of professionals, just one event cancellation can mean a significant loss of income. But as the coronavirus pandemic spread throughout the United States and countless events of all kinds were cancelled, people in the event industry were suddenly left without work for the foreseeable future.
Anyone who has ever worked in the event industry can tell you how easy it is for something to go wrong, no matter how much you plan ahead. Because of this, events often involve multiple types of insurance to protect those involved when the unexpected happens.
COVID-19 & Event Cancellation Insurance Claims
In light of the COVID-19 pandemic, many business owners in the event industry are left dealing with event cancellation insurance claims. And, just as they are for people making other types of business interruption insurance claims, insurers are very frequently denying event cancellation claims.
Event cancellation insurance typically covers events if they are cancelled for reasons like severe weather, damage to an event venue, or unavoidable travel delays. However, as is the case with other types of business interruption insurance claims, insurers are often arguing that policies do not cover viral pandemics. They may also try to say that concerns over coronavirus are not enough for them to cover an event cancellation. Another thing they could do is try to put the burden on you to reschedule or relocate your event as a way to minimize losses, even though there’s still a lot of uncertainty about when events will be able to safely resume.
What to Do if Your Insurance Claim is Denied
With the sheer volume of insurance claims coming in, insurers are taking a very broad approach to denying claims. Even business owners who have made valid, qualified claims have had their claims denied. It makes no difference if the cancelled event was a small wedding or a major event that gets international attention. Even the organizers of South by Southwest had their insurance company deny coverage for their cancellation.
Event cancellation insurance claims can be very complex, so if your claim has been denied or you’re getting ready to make a claim, it can be very helpful to have an experienced lawyer on your side. At The Wallace Firm, we’re now helping California business owners with their business insurance claims. Our team is used to dealing with insurance companies and we have a lot of valuable insights to how insurance companies operate. Contact us today for a free case evaluation.