Question 1

What are typical 'Non-Refundable Costs'?

Accepted Answer

These are expenses you've paid or are contractually obligated to pay, even if the event doesn't happen. Common examples include venue deposits, speaker retainers, marketing expenses already incurred, and deposits for catering or AV equipment.

Question 2

How do I estimate 'Lost Revenue'?

Accepted Answer

This is the income you expected to receive but won't due to the cancellation. It primarily includes all ticket sales (assuming you have to refund them) and any sponsorship revenue that is contingent on the event taking place. Check your sponsorship agreements for clauses on this.

Question 3

Does event cancellation insurance cover everything?

Accepted Answer

Not always. Policies vary greatly. Most standard policies cover cancellations due to unforeseen circumstances like extreme weather, venue damage, or labor strikes. However, they often *exclude* cancellations due to poor ticket sales, speaker no-shows, or public health crises unless you have a specific rider. Always read your policy carefully.

Question 4

What is a 'force majeure' clause?

Accepted Answer

A 'force majeure' clause in a contract frees both parties from liability in the event of an extraordinary, unforeseeable event (like a war, natural disaster, or pandemic). If a cancellation is covered by a force majeure clause, you may be able to recover deposits from vendors you otherwise couldn't.

Question 5

What's the difference between cancelling and postponing an event?

Accepted Answer

Financially, postponing is often preferable. You may be able to retain deposits and apply them to a future date, significantly reducing your non-refundable costs. This calculator is for a full cancellation, but the same logic can be used to estimate the costs associated with a postponement (e.g., re-booking fees, new marketing).

Event Cancellation Loss Calculator

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Understanding Event Cancellation Loss

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