Arch Insurance International has introduced a cyber coverage extension for event cancellation policies, targeting a gap in protection as the live events industry grapples with growing digital threats.
The product, now available through the London Market and Arch's instant quote platform, covers financial losses from event cancellation, abandonment, postponement or relocation due to cyber incidents, including malicious attacks and system failures.
Standard event cancellation policies were designed around physical perils such as adverse weather, venue damage, performer illness or terrorism. Cyber risk has historically been excluded or heavily sub-limited, leaving organisers exposed as events have become increasingly dependent on digital infrastructure for ticketing, payments and venue operations.
Recent incidents have underscored the vulnerability. The 2024 Ticketmaster breach exposed data on approximately 560 million customers globally, while the Paris Olympics faced over 140 reported cyberattacks targeting ticketing systems and broadcast infrastructure during the Games.
For event organisers, this creates a specific problem: a ransomware attack on a ticketing platform or venue access system could force cancellation even when the physical venue remains intact – scenario traditional contingency policies were not built to address.
Arch's extension covers losses arising from unauthorised or criminal cyber acts, as well as computer system failures. The policy extends to third-party infrastructure, including failures of communications and utilities that prevent an event from proceeding.
Policyholders also gain access to specialist incident response consultants, with services including forensic investigation, legal counsel and public relations support.
Chris Rackliffe (pictured above), head of contingency and accident & health at Arch, said the product was developed in response to growing client demand.
"In an increasingly digital world, where the seamless operation of technology is vital to the success of events, a cyber incident can have significant financial and operational consequences," Rackliffe said.
The launch comes as insurers expand their appetite for non-traditional event risks. Demand for weather-related event cancellation cover has grown, with organisers of outdoor weddings and concerts increasingly seeking protection against climate-driven disruption.
Cyber adds a new dimension to that exposure. Unlike weather, which affects a single event, a cyberattack on shared infrastructure – such as a major ticketing platform – could simultaneously disrupt hundreds of events across multiple venues, raising aggregation concerns for underwriters.
