How much of the budget should I insure as I don’t stand to lose everything even if the event is completely cancelled?
Whether you choose to insure total revenue or just expenditure, the sum insured should be the total revenue or expenditure for the event. When calculating the premium underwriters make allowance for the fact that a “total loss” is unusual. However, if you were to underinsure your event this could have the effect of reducing the amount paid in a claim in proportion to the extent of underinsurance. This is not to be recommended.
