Take out cancellation insurance when your event carries financial risk. Think of an outdoor event with major catering investment, an event with an expensive speaker or artist whose fee is non-refundable, or a conference with significant sponsor ticket commitments. Take out the cancellation insurance as soon as you start making the first deposits to venue, catering or artist. This protects you against unforeseen circumstances: extreme weather, illness of key people, force majeure such as a lockdown or power outage, or a sponsor pulling out at the last moment. Typical coverage is 80 to 90 percent of costs incurred. Don't take out insurance if your event has virtually no fixed costs, such as an online event or free venue. The premium ranges from 5 to 10 percent of the insured amount. Live Impact advises on the right timing for cancellation insurance.