This is often divide inot four clear categories:

Abandonment Insurance

Whatever the event, it's organisation often takes considerable time, not to mention expense. Even the best planning and preparation cannot take account of the unexpected.

Consider the following:

• a key person becoming ill or disabled
• the venue burning down
• national mourning
• epidemic
• failure of electricity supply
• adverse weather
• withdrawal of public authority authorisations for security reasons

Organisers, promoters, sponsors and owners of venues are just some of the parties who can lose financially if an event has to be cancelled. Other parties such as souvenir manufacturers and hoteliers may also suffer financial loss if the event is cancelled or abandoned. Costs are often incurred long before the even takes place and can include items such as hire of the venue, printing costs, publicity costs, travelling expenses and performers' fees. Additional expenditure will also be incurred if the event is subsequently rescheduled.

Advertising Indemnity

Advertising Agents work for a series of clients to create advertising concepts, put together commercials and arrange for their subsequent transmission.

A commercial may have to be cancelled, abandoned or postponed due to circumstances beyond control of the Agent. Circumstances may include :

• illness or disability of a 'key' performer or director
• damage to the studio or location where the shoot is to take place
• faulty equipment necessary for the shoot

More importantly, a commercial could be completed successfully but may have to be withdrawn from transmission if the 'key' performer dies or disgraces themselves in the eyes of the public, thus making it unsuitable for them to be associated with the client's products.

Death and Disgrace Indemnity

Known celebrities are frequently hired to feature in commercials. If they die, or disgrace themselves in the eyes of the public following the production of the commercial or during the screening phase, it may no longer be desirable to have them associated with the product being advertised. The commercial may have to be withdrawn.

For example, an advertisement to promote a new product launch was accompanied by a sound track performed by a pop group. Subsequently it was discovered that the pop group was associated with the use of obscene videos during live concerts. The advertisements had to be withdrawn because the sponsors could not allow their new products to be associated with, and damaged by, the image of the pop group concerned.

Prize Indemnities

Hole-in-One
Golf Tournament organisers often offer a prize to competitors achieving a specific hole-in-one during a competition round. If the prize is won, the organisers incur a financial loss.