When it comes to underwriting insurance for festivals and large public events, there’s no single formula that works every time. Instead, it’s about asking the right questions, anticipating where risks might arise, and above all getting a real feel for the event.
That’s the advice from Heather Moyer, underwriting director at K&K Insurance Canada, who has spent more than two decades evaluating everything from music festivals and fairs to fundraisers and corporate parties. In an interview with Insurance Business Canada, Moyer offered a behind-the-scenes look at how experienced underwriters approach event risk – and what organizers should be thinking about if they want to secure coverage on strong terms.
Years ago, Moyer said, getting to know an event meant being there in person. Her boss would send her out to walk the grounds, take notes, and identify any potential hazards – physical, environmental, or human. “It was about getting a feel for the event,” she said. That same principle still applies today, even though much of the information-gathering can now happen online.
By reviewing videos, photos, attendee reviews, and historical information about past incidents or complaints, underwriters can build a picture of the event’s tone, scale, and risk profile. But ultimately, it still comes down to knowing what to look for – and understanding the psychology of the crowd.
For Moyer, the underwriting process often begins with assessing crowd psychology. Understanding what kind of state of mind attendees are likely to be in plays a major role in gauging risk. That’s one reason her firm avoids insuring events like rage rooms or political protests – environments where emotional intensity can quickly escalate.
From there, underwriters turn their attention to the venue. Whether the event is indoors or outdoors, how easily the site can be controlled is a major factor. Fenced perimeters, staffed entry points, and controlled access are all signs of a more manageable risk. Regional differences also matter. Liquor laws, for example, vary between provinces, and understanding how liability might be assigned in a given jurisdiction is key to evaluating exposures.
The size of the crowd is another foundational element. While some insurers offer packaged event policies for gatherings of up to 250 or 500 attendees, Moyer notes that once an event exceeds 1,000 people, the risk profile becomes more complex and warrants a deeper level of scrutiny.
Other considerations include the type of event, its purpose, and how long it lasts. A family festival ending at 10 p.m. is far less risky than an overnight music event with alcohol and camping. The substances likely to be consumed – whether alcohol, cannabis, or otherwise – also influence appetite for coverage, especially given that some carriers have exclusions for cannabis use or even for injuries caused by things like discarded cigarette butts.
Organizers themselves are just as important to the risk equation. Experience matters, both for event leadership and for volunteer staff. Underwriters want to see that the people running the event have handled similar situations before and have the structure in place to manage any unexpected developments.
Security is another focal point – ideally provided by third-party professionals, with additional police or RCMP presence for large gatherings. Moyer adds that insurers often recommend minimum ratios, such as one security staffer for every 250 attendees.
Emergency preparedness also weighs heavily in underwriting. A clearly outlined response plan, complete with radio communication, assigned roles, and on-site medical technicians, is a strong indicator that an organizer takes safety seriously. Basic infrastructure, like access to food, water, and shelter – particularly for summer events – is just as critical. Poor logistics can lead to crowding, bottlenecks, and even panic in a worst-case scenario.
Moyer stresses that even the best-planned events need contingency strategies. Schedules should be realistic, and communication plans need to be tested and ready to deploy. All of these elements feed into an underwriter’s decision – and help determine not just whether an event can be insured, but how favorable the terms will be.
While the underwriting process often starts with a mindset of curiosity and inquiry, experienced professionals know there are certain red flags that can’t be ignored. Moyer explained that one of the biggest indicators of elevated risk is a lack of preparedness or poor communication on the part of the organizer.
“There’s nothing like actually attending the event yourself,” she said. While photos, applications, and even promotional videos can help tell part of the story, Moyer emphasized that the best-case scenario is when underwriters have firsthand exposure to how an event is planned and executed. Still, when that’s not possible, the level of detail and consistency in a client’s application often makes all the difference.
Events that approach insurers only a day or two before their launch date, or submit paperwork with conflicting information – such as different projected attendance figures on different pages – immediately raise red flags. If the organizers can’t accurately describe their own event, it becomes difficult for an underwriter to trust that other safety elements are in place.
“Applications that say there’s no camping, but then you check the website and it clearly allows camping – that undermines confidence in the rest of the details,” Moyer said.
Certain types of events also tend to trigger greater scrutiny, especially those associated with crowd control or substance use challenges. Moyer pointed out that electronic music festivals (often previously categorized as “raves”) are generally outside of appetite for many insurers, largely because they often involve long durations, overnight attendance, and attendees who may not be drinking alcohol but could be exposed to other risks. In particular, events running until 5 or 6 a.m. and advertised as all-ages can quickly cross into uninsurable territory.
Other red flags include vague or inadequate emergency response plans. “Statements like ‘move people to a safe area’ don’t mean much without clear roles and logistics,” Moyer said.
Insurers need to know who is responsible for executing each part of the plan and how different scenarios – medical incidents, weather emergencies, security breaches – will be handled in real time.
She also advised against organizing events in venues that fall outside the standard safety parameters. Bars, nightclubs, and private properties like Airbnbs are often considered unsuitable, as are events that involve significant water-based activities, such as parties on boats or near lakes. These settings increase liability and limit the underwriter’s ability to assess and mitigate risk.
In the end, Moyer said, a well-structured application and a clear plan go a long way. “The more detailed the story the client can tell you, the easier it is to underwrite – and the better the terms you can offer.”
