A more difficult situation arises where a state or municipality has not limited gatherings or has only limited gatherings until a date prior to the commencement of the event. Around the world, festivals, sporting events, conferences and community celebrations are being cancelled or postponed due to concerns over the spread of COVID-19. “In light of the current global spread of COVID-19 and the cancellation of other recent large events, the prudent decision would be to cancel or postpone the Olympic Games,” he added. Given this, event cancellation policyholders should examine their coverage closely to determine whether there is a disease-related exclusion and whether such exclusion has been deleted or modified by endorsement. © 2001–2021 Pillsbury Winthrop Shaw Pittman LLP. Coronavirus event cancellations: Communication is key to retaining public trust March 16, 2020 11.07am EDT Around the world, festivals, sporting … COVID-19 Event Cancellation Template Dear Participant, The (Name of the Organization) has been closely following the news surrounding COVID-19 and its related public health concerns. Right now, you’re probably considering whether to postpone, or even cancel, your event to keep your attendees safe. The event … Since 1984, Cohen has hosted a Kwanzaa celebration in Savannah, most recently at the Tompkins Center, but this year she decided it would be safer to cancel the event due to COVID-19. ... “This ballroom has successfully postponed and moved over 45 events due to Covid-19. Share. It's also a family business … Many event cancellation policies exclude coverage for loss arising from a communicable disease, or the threat or fear of communicable disease, whether actual or perceived, and whether or not the spread of the disease in question has officially been labeled a pandemic. First and foremost, the parties should identify whether the agreements have force majeure or excuse of perfor… Last Friday’s announced cancellation of the annual South by Southwest film, tech, media and music conference held in Austin in March was just the beginning, as book festivals, holiday parades and even the popular Coachella music festival have added to the cascade of cancellations and postponements. You can help by adding missing items with reliable sources. The specific contract language and the status of the COVID-19 pandemic crisis and response at the time the event is scheduled will be critical in determining whether an event contract can be canceled based upon force majeure. The global outbreak of coronavirus (COVID-19) means we’ve had to stop socialising and gathering to help prevent further spread. Thus, the first consideration in determining whether an event cancellation policy may apply to provide coverage is whether the event organizer was truly unable to complete or commence an event, or left with no other choice than to postpone the event. Guiding Principles. Despite these precautions, two NBA players have tested positive for the virus and the league has suspended the remainder of the season, effective March 11, 2020, until further notice. Posternak Blankstein & Lund LLP is now Arent Fox. As with most insurance coverage issues, whether a particular loss is covered by a particular insurance policy depends almost entirely on the policy language along with the specific circumstances of the loss. Event cancellation policies are often complex, sometimes confusing, and may contain traps for the unwary. Intermat announces cancellation of 2021 event due to Covid uncertainties. These types of policies may also contain a “pandemic” exclusion or an exclusion for government-issued quarantines but, depending on the wording of any of these exclusions, coverage might still exist for events cancelled because of the coronavirus. That memo also encouraged everyone affiliated with teams to be vigilant about washing and sanitizing their hands, and those employees and players have also been encouraged to not shake hands or utilize high-fives. Stayed tuned for an update on City events. These types of policies are meant to insure event-related revenue or expenses against a cancellation due to circumstances beyond the policyholder’s control (usually delineated as “all-cause” coverage), such as weather events like hurricanes, tornadoes, major storms, earthquakes and wildfires, as well as terrorism events, labor strikes, non-appearance of key people, and unavailability of the venue due to fires, floods or power outages. Mar 30, 2020. The first category is the sum of expenses incurred from the event, less gross revenue retained after refunds, and less any savings the insured was able to obtain by mitigating its loss. An additional wrinkle could be whether the event arguably could be completed or commenced in a virtual format. International Arbitration & Dispute Resolution Blog, Court Enjoins Federal Government from Enforcing Key Provisions of Executive Order 13950, Malcolm Gladwell and the New Normal After Covid-19, Congress Passes Expanded Paycheck Protection Program (PPP) Including Second Draw. The tournament, the oldest tennis Grand Slam event, had previously been canceled only during World War I and World War II. Event cancellation insurance policies, like many other types of insurance coverage, are often complex, sometimes confusing, and could well contain traps for the unwary. As COVID-19 has forced the country indoors, businesses, as well as conference and event organizers, are being forced to determine if, or even when, to cancel or reschedule their events. The bottom line for policyholders who purchased event cancellation insurance policies before the coronavirus became headline news earlier this year is that the policies they purchased might well cover the economic damages flowing from the cancellation of an event due to COVID-19. A gathering refers to a planned or spontaneous event, indoors or outdoors, with … However, before deciding to cancel or postpone an event, it is important that the insured understand the provisions of its event cancellation policy and how any decision to cancel or postpone may impact the coverage under that policy. The French Open, set for … Enter special events insurance — and specifically cancellation insurance. In this note, we focus event cancellation insurance. We recommend that you obtain separate legal advice. The City encourages all residents to continue practicing social distancing, wear masks, and follow the health and safety protocols recommended by the MDHHS. However, as COVID-19 case numbers continue to increase, the committee decided to cancel the event for everyone's safety. Next edition of construction machinery and infrastructure expo to be held in April 2024. This definition would clearly encompass COVID-19. On March 4, 2020, Los Angeles Dodgers President Stan Kasten acknowledged that, under certain circumstances, the Dodgers could “wind up either canceling games or holding games without spectators” because of the coronavirus. The Parks & Recreation Department is also working with the St. Clair Shores Activities Committee to bring you a COVID-safe Christmas Tree Lighting. COVID-19 prompts cancellation of Charlottetown polar bear dip The annual polar bear plunge in Charlottetown will not be going ahead this year due to COVID-19. The COVID-19 pandemic, however, places event and conference organizers in a particularly tough predicament: whether to proceed with their event, cancel or postpone it. (Photo: Reuters/Ann Wang) Tweet. The words “cancellation” and “abandonment” are each generally defined as the inability to commence or complete an event. An “all-cause” event cancellation policy could, depending on the policy wording, provide coverage for event cancellations due to an outbreak of infectious or communicable diseases such as the coronavirus. The COVID-19 pandemic has caused many events around the world to be cancelled or postponed due to a country's government imposed restrictions of large gatherings. The term “communicable disease” can be defined as an illness caused by a pathogen and transmitted from an infected person or animal to another person or animal. Contrary to common belief, the Consumer Guarantees Act ( CGA) will not apply in the case of cancelled events. The 2020 Summer Olympics in Tokyo have been postponed until 2021following weeks of speculation over whether the games would go ahead as scheduled amid the coronavirus pandemic. IMEX Frankfurt. The next thing to consider under an event cancellation policy is the potential exclusions to coverage. Tampa Bay Rays pitcher, Ji-Man Choi, whose mother and brother currently live in South Korea, has, out of an abundance of caution, asked all Korean media members to conduct their interviews with him outside the Spring Training clubhouse to help shield his teammates from any possible exposure. delhi Updated: Dec 27, 2020, 23:06 IST However, there is reasonable concern that timeframe may be extended. The parade normally is … © Copyright 2020 Arent Fox LLP. WASHINGTON – MARCH 11, 2020 – After careful consultation with our member companies regarding the health and safety of everyone in our industry – our fans, our employees, our exhibitors and our longtime E3 partners – we have made the difficult decision to cancel E3 2020, scheduled for June 9-11 in Los Angeles. One of the key considerations in the determination to cancel or postpone an event is the potential applicability of any event cancellation insurance that the organizer may have. The safety of attendees, pets, and crew must always come first. Email. These exclusions often expressly refer to certain previous global disease events, such as SARS, MERS, and Avian Flu, and may contain a catch-all provision relating to “any other” flu variant or communicable disease leading to the restriction on movement of people and/or goods. These and any accompanying materials are not legal advice, are not a complete summary of the subject matter, and are subject to the terms of use found at: https://www.pillsburylaw.com/en/terms-of-use.html. This announcement came on the heels of the National Basketball Association’s recommendations to its players that they should utilize fist-bumps over high-fives with fans and cautioning players not to take items to autograph from fans such as balls, jerseys and pens. Seventeen years ago, during the height of the severe acute respiratory syndrome (SARS) outbreak, insurers began universally applying a SARS exclusion to all event cancellation policies. In the coming weeks and months, many business and event organizers will be faced with a difficult decision of whether to cancel or postpone an event. As a result, entertainment companies, music promoters and professional sports teams facing losses because an event has been cancelled due to the coronavirus, or those worried about potential cancellations, should consult with an experienced sports or entertainment insurance recovery attorney to review the policy language and to help coordinate with insurance brokers and carriers and to assist with properly crafting of a claim submission in order to optimize coverage under the specific policy at issue. For those policyholders who procured event cancellation insurance before January 2020, they may have purchased optional coverage, for an additional cost, for cancellations due to infectious or communicable diseases. The difficulty of that decision can potentially be reduced by an event cancellation policy. Now that the NBA has suspended the remainder of the 2019-20 season, the NHL has followed suit, and the NCAA men’s and women’s basketball tournaments will be played in empty arenas because of the COVID-19 virus and related local and state emergency declarations, it may be a matter of time before Major League Baseball also announces postponements, suspensions of games, or games played in empty stadiums. Event cancellation insurance is essentially a type of business interruption insurance and should be considered for any group meeting or event that makes revenues for the group. Event … You know there’s a good chance of cancellation, and that’s why you’re getting a great price. As noted in our previous Legal Alerts concerning insurance coverage for coronavirus related issues, as businesses are forced to close, travel is restricted, and supply chains are disrupted, COVID-19 insurance claims will proliferate, likely affecting all lines of coverage, particularly property and general liability coverages. Event cancellation insurance policies purchased before 2020 might cover the economic losses resulting from cancelling an event due to the coronavirus. By Anirban Bagchi. Michigan coronavirus cases:Tracking the pandemic The $1,500 wedding dress remains in the garment bag, waiting for alterations one day and maybe a big anniversary party a year from now. An important consideration for an insured is to make sure that it complies with any mitigation obligations that it may have under the policy. It has been reported that such coverage is no longer being offered and, in fact, many insurance companies are including specific coronavirus exclusions in newly issued event cancellation policies. Furthermore, event organizers looking to purchase event cancellation insurance should make sure that the coverage they are purchasing does not have a disease-related exclusion. By now, you have likely heard news of school and business closings as well the canceling of social and community events to prevent further spread of the virus. How to Handle an Event Cancellation during the COVID-19 Pandemic. Event cancellation policies will generally calculate loss based on one of these two categories, or calculate loss as the greater the two categories. ... closed or postponed so far due to the continuing coronavirus … “Disruption” is generally defined as the “unavoidable partial closure” of the event, and “rescheduling” is generally defined as the “unavoidable postponement” of the event to another time or the “unavoidable removal” of the event to another location. To cancel a show entry you must go to the superintendent or event secretary handling the entries for the show. Major League Baseball recently sent a memo to its 30 teams warning them to be diligent about coronavirus and to carefully check players with flu-like symptoms. As with any insurance policy, meeting professionals must review what items are covered by a policy but also what items are not covered by a policy (exclusions). Many entertainment companies, music promoters, and professional sports teams often secure specialized “Event Cancellation Insurance” coverage on either an annual basis or specifically for large events, including large music festivals. Events are being canceled because attendees and exhibitors cannot travel. Some spring and summer events canceled in Michigan. Following increased and overwhelming concerns about the COVID-19 virus, we felt this was … The second category of loss under an event cancellation policy is typically the net profit the insured would have earned had the event occurred. Families fight for refunds after event halls cancel celebrations due to COVID-19 . Such agreements may include lease agreements, sponsorship agreements, ticket agreements, ticketbacks or other related commercial contracts. It is safe to assume this is the way the Mobile World Congress debacle started to unfold. Share. Read the press release. Unlike such a cruise, it is safe to say that it was a basic assumption of those entering contracts in 2019, before the novel coronavirus spread, that their 2020 events wouldn’t be cancelled. The amount of the loss covered by an event cancellation policy will generally fall into one of two categories. Update Your Community Using This Email Template. The National College Players Association has also suggested to the NCAA that it should seriously consider holding March Madness games in empty arenas. It was projected that, with travel bans from Asian, a sizable chunk of the event audience — and probably one of the most important chunks — could not attend. Variations of this type of insurance coverage exist in the sports, entertainment and event planning industries (including convention planning). Here’s an event cancellation email sample to get you started: This message is to inform you that this year’s Corgi Festival has unfortunately been cancelled, due to severe weather and a high likelihood of lightning in the area. Jashn-e-Rekhta cancels annual event in light of Covid-19 pandemic Rekhta Foundation decided to cancel the 2020 edition of its annual event. An express condition in many event cancellation policies is that the insured “shall at all times do all things necessary to avoid or diminish a loss under this policy ...” Furthermore, if the policy provides coverage for enforced reduced attendance, an insured will have to weigh whether to cancel or postpone the event completely, or proceed with the event and recover the loss attributable to the reduced attendance. For more thought leadership on this rapidly developing topic, please visit our COVID-19 resources page. In addition to cancelling sports, movie premieres, and the Olympics, the COVID-19 outbreak has caused a number of notable events in Michigan to cancel. If an event is in a state or municipality that has limited gatherings to the point that holding the event would be in violation of such an order, then it is fairly clear-cut that the event would be unable to be commenced or completed. There are currently 18 players on major league rosters who were born in countries hit hard by the coronavirus like Japan (9 players), Taiwan (5 players), and South Korea (4 players). As COVID-19 has forced the country indoors, businesses, as well as conference and event organizers, are being forced to determine if, or even when, to cancel or reschedule their events. Letting donors know your event is a no-go isn’t … Certainly, an exclusion for a communicable disease could prove devastating to an event organizer that was looking to its event cancellation insurance to help make it whole following a COVID-19 related cancellation. Capital City Film Festival, Lansing — April 9 - … Before postponing, rescheduling or canceling an event because of COVID-19, all parties should promptly analyze their rights and obligations under relevant material agreements. This is a dynamic list and may never be able to satisfy particular standards for completeness. Pillsbury’s experienced crisis management professionals are closely monitoring the global threat of COVID-19, drawing on the firm's capabilities in supply chain management, insurance law, cybersecurity, employment law, corporate law and other areas to provide critical guidance to clients in an urgent and quickly evolving situation. All Rights Reserved. IMEX is a landmark trade show in the events industry. In such instances, it is less clear whether an event organizer may be unable to commence or complete an event or face a situation where partial closure or postponement of the event is unavoidable. Posted on December 21, 2020. Furthermore, the event cancellation policy may also have a provision that provides coverage for “enforced reduced attendance, which can be defined as an “abnormal and substantial reduction in the projected attendance for the insured event, of either attendees or exhibitors, based upon historical data for such insured event.”. Inevitably, this has had a huge impact on the events industry. Now, let’s be clear: If you are planning an event, and you have not already purchased an … Taiwan cancels tourism event after COVID-19 case People wear protective masks to prevent the spread of COVID-19 while riding the metro in Taipei, Taiwan on Dec 23, 2020. Michigan's ban on indoor dining at restaurants has been extended by 12 days to help suppress a possible surge in COVID-19 cases following … A variation of the definitions of “cancellation” and “abandonment” can include the “physical or legal inability” to commence or complete an event. KANAGAWA (TR) – The Inagawa-kai criminal syndicate is cancelling various events typically held around the New Year’s holiday due to the spread of the novel coronavirus, police have revealed, reports the Asahi Shimbun (Dec. 23).. On December 22, the gang said that it is cancelling Final Meetings (nokai) on December 27 and 28 and New Year’s Greetings (nento aisatsu) on January 7, 2021. The Centers for Disease Control and Prevention is recommending that large events and gatherings of 50 or more people, scheduled within the next eight weeks, be canceled or postponed. 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