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Climate Change Has Caused Event Insurance Prices to Triple — and Indie Promoters Are Bearing the Brunt

Climate change has caused event cancellation insurance prices to rise, and indie promoters are being hurt the most.

Executives with destination-festival producer Topeka thought they had a policy in place when they announced Harvest Moon — which was to feature headliners Eric Church and the Turnpike Troubadours — and had had no problem getting coverage in the past; the festival fell outside the official hurricane season. While these circumstances are rare, the incident underscores how the liabilities posed by inclement weather and climate change have significantly increased financial risk for independent promoters.The event business used to be much more competitive, which meant much lower prices for the policyholders. While Live Nation and AEG have begun reducing payouts for festivals that cancel 60 to 30 days in advance, prompting some artists to carry their own policies, indie promoters can’t often stipulate similar terms for their acts, and, as a result, “people are becoming more cognizant of the risks they face from weather,” he says.

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