Not all mega-events are created equally. Some are indoors, some are outdoors. They attract different crowds, and are held in locations throughout the world.
To that end, insurance coverage for these events depends on what it is and where it is held, among other factors.
"The insurance requirements of large sporting events are many and varied depending on the nature of the event and its history," noted Phillip Eaglestone, a partner in the Health & Specialty division of Glencairn Ltd.–a unit in Willis' third-party wholesale brokerage business, Faber & Dumas.
"Certain events are mobile and move from one country to another following a successful tender to host such events," he added. "Other events remain static in as much as they are held consistently at the same venue over a period of many years."
When evaluating a mega-event risk, Mr. Eaglestone said underwriters will consider factors such as:
- What is the political and economic stability of the country hosting the event and those surrounding it?
- Is the existing infrastructure sufficient to support the demands of hosting the event?
- Is the event in a country or close to a country more susceptible to terrorism?
- Is the event in a country that is subject to a natural catastrophe such as earthquake?
- Is the event vulnerable to adverse weather?
Consequently, he said, the coverage required for mega-events such as the Olympics would include some if not all of the following:
- Accident and illness
- Emergency medical, evacuation and repatriation expenses
- Auto
- Commercial crime
- Construction, where there are infrastructure requirements
- Contingent financial risks
- Directors & officers
- Engineering
- General liability
- Group travel accident
- Property
- Workers' compensation
- Professional indemnity
- Terrorism
- Travel accident
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