The events industry is dynamic and multifaceted, and the spectrum of risks associated with the sector can be broad and complex. The increasing pressure to deliver consumable content regularly means the risks involved are potentially huge. From on-set accidents to artist no-shows to sudden extreme weather, the impact can potentially cripple bottom lines of event organisers.
Event cancellation insurance rates in Australia increased sharply during and after the COVID-19 pandemic. During that particular period, there was also a reduction in insurer capacity, which made it harder and more expensive to get event cancellation coverage in the entertainment industry.
The good news is the market has recovered since the pandemic and premium rates have now started to stabilise and even decrease in 2025. While some insurers that suffered losses during the pandemic are maintaining their current rates, newer insurers in the market are more willing to offer lower prices to attract clients. This competitive tension in the market has helped to provide more options and choice for businesses in the entertainment and events industry.
Outlook: Overall, we expect event cancellation premiums to continue following a downward trend over the next 12 to 18 months.
Insureds in the events industry often prefer tailored packages rather than one-size-fits-all cover.
We’ve also seen a higher interest in and uptake of the civil commotion extension due to the growing concern among insureds around increased protest activity over recent years, both in Australia and overseas. This coverage extension is highly recommended for high-profile events as well as events held in densely populated areas with high visibility, such as central business districts in major cities.
Common types of claims in the entertainment and events industry include event cancellation and postponement costs.
Most of the recent losses experienced in the events industry relate to adverse weather, which can make an event dangerous and unsafe to proceed. Australian weather patterns are fluctuating and becoming less predictable. Traditionally “safe” months for outdoor events now have a greater exposure to extreme weather events so it’s important for organisers to have contingency plans.
Events cancellations can impact festival organisers or touring groups, resulting in lost revenue and vendor reimbursements or costs.
Your insurance purchase is the ideal time to review whether your cover matches your current risks and exposures. Our top five tips to help you achieve a better outcome are:
The events industry is changing due to unpredictable weather patterns and insurers’ evolving risk assessment approaches. To stay protected and reduce your insurance spend, it’s important to review your insurance policies regularly, understand your cover, manage risks carefully and choose coverages that fit your needs. By keeping up with current market trends and planning ahead, event organisers can better handle the uncertainties and challenges they face today.
Speak with a Marsh advisor who understands the sector and can tailor a solution to your needs.
The type of cover required can vary depending on your role and activities. An events organiser has very different risk exposures to a musician or a film crew. Large events also differ from smaller events. Examples of insurance cover commonly purchased in the events industry include:
Yes, broader market shifts and influences such as event liability risks can still affect insurance premiums.
Yes, larger events usually attract higher liability exposure.
Although we can’t combine the policies in all circumstances we can arrange for them to be placed at the same time to save you administration.
Begin discussions well before your event to avoid rushed decisions. This also allows you and your broker time to plan your insurance structure, set expectations and explore options.
A Marsh events insurance advisor can help you review your insurance cover requirements against your risk exposures and guide you through the process with industry-specific insights.
This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and any analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change.
This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances.
Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238 983) (“Marsh”) and Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238 369) (“MAI”) arrange the general insurance (i.e. not the Discretionary Trust Arrangement) and are not the insurer.
Discretionary Trust Arrangements are issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417 964) (“JGS”). Any advice or dealing in relation to a Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226 827) (“JLT”). The cover provided by a Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.
For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements (PDSs) available from the relevant product issuer. Target Market Determinations (TMDs) are available here.
Marsh, MAI, JGS and JLT are businesses of Marsh McLennan.
LCPA 25/802
