Contingency Risk

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Contingency Risk insurance offers coverage for a broad range of risks for which neither party to the transaction will accept financial responsibility. Contingency risks come in many forms, with the common thread being that they are all risks that are capable of legal analysis. Contingent risks are typically low probability but high severity risks. Every Contingent Risk insurance policy is bespoke to the specific facts of the transaction. Contingent Liability Insurance provides coverage within the context of the transaction. This differs from Representations and Warranties coverage, which covers only unknown exposures


Contingency insurance solutions can protect against a variety of threats to the successful completion of an entertainment or sporting event, tradeshow, conference, or production. When utilizing this type of solution, an insurer typically will agree to indemnify an insured for its ascertained net loss when an insured event must be cancelled, abandoned, postponed, interrupted, curtailed, or relocated provided that the cause is beyond the control of the insured, insured persons, and other participants, unless that cause is not specially excluded. These include:

Event cancellation

provides expense or revenue protection when forces outside of an insureds’ control cause the necessary cancellation, postponement, relocation, curtailment, or abandonment of an event.


Entertainers, personalities, and athletes are hired to provide entertainment. If an event must be canceled due to death, accident, illness, or travel delay, a nonappearance policy can protect your investment.

National mourning

extends coverage to include any loss directly or indirectly arising out of, contributed to, or resulting from national mourning declared by the government or monarchy of the country in which the insured event is due to take place.


any threat or act of terrorism that is confirmed by local or national government authorities or security services as having posed or appeared to pose real risk or physical loss or damage or actual bodily injury or death if the event had proceeded. Sabotage, strikes, riots, civil unrest, and political subversion typically can be added.

Adverse weather

Standalone weather coverage for named windstorms, extreme winds, electrical storms, rainfall, snowfall, and extreme temperatures. Ordinarily, adverse weather coverage can be written on a per event basis.


Coverage will pay the insured amount based on contractual obligations for the failure of the insured person to survive for the duration of the policy. 


When an insured person suffers an accident or illness that causes the necessary cancellation or withdrawal of an insured event, the policy will cover the insured amount declared.


Coverage for disgrace typically protects against situations that degrade or bring an insured person into disrepute or provokes insult or shock to the community and reflects unfavorably upon an insured, its principals, or its products.

Over redemption

Provides the ability to offer protection from excess recoupment above budgeted projections.

Prize indemnity

Games of chance where a prize can be awarded to a winner are commonly insured through a prize indemnity policy. This policy would pay, on behalf of the named insured, if any eligible contestants win the game or contest.

Contract bonus

Common in sponsorship, promotional, and/or endorsement contracts, this coverage is designed to pay the bonus on a specified basis to a professional athlete, spokesperson, and/or celebrity if he or she achieves certain contractual goals.

Key man coverage

Insurance can cover a key owner/employee who may be crucial to an insured’s business strategy and whose absence may bring adverse financial implications

Transmission failure

Any live or one-time broadcast event — whether on traditional media (such as network television) or other distributions — may be subject to a breakdown that prevents completion of a transmission.

Geographical area



Contact the Contingency Risk insurance team today to find out more

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