November 14, 2025
Touring is the lifeblood of your career. It’s where you connect with fans and earn a living. But what happens when the unexpected strikes? From wildfires to floods, no venue is truly safe.
Unpredictable weather, tighter contracts and a challenging insurance market create a perfect storm of risk. With event cancellations rising, are you prepared? Are you comfortable absorbing potential losses, or do you need tour insurance to safeguard your revenue?
Why risks are rising for touring artists
A decade ago, artists could count on receiving most of their guaranteed pay. Even if weather canceled a show, major promoters often covered the loss. That is no longer the norm. Many promoter contracts now include weather clauses. These cap payouts at 50% to 75% of your original guarantee. Superstar acts might still get their full fee, but they are the exception.
This leaves mid-tier touring acts in a tough spot. You are big enough to rely on guarantees to cover your costs. Yet you lack a headliner's negotiating power. A single canceled show can mean losing tens or hundreds of thousands of dollars.
A string of canceled dates could wipe out your tour's projected revenue. Without an event cancellation policy, you absorb those losses entirely. If you have a percentage-of-gate deal, you may get nothing if a show is called off. These industry changes expose more artists to serious financial risk.
How weather disruptions affect touring
You can no longer assume certain regions are safe from severe weather. Storms and climate events now impact shows across the country. A couple years ago, extreme weather affected at least 30 major concerts.
Consider recent Canadian wildfire smoke. Lollapalooza kicked off in 2023 while Chicago had some of the worst air quality in the world. Wildfires don't need to be near your venue to create dangerous conditions. Wind can push smoke into cities far from the fire, forcing cancellations. Poor air quality can also trigger closures for indoor venues.
Severe weather is compromising inland locations, not just coastal areas. Officials cancelled the Bonnaroo festival in Tennessee after its first day, due to intense rain and flooding. At Red Rocks Amphitheatre in Colorado, a hailstorm injured dozens of fans during a Louis Tomlinson concert.
These events highlight that no tour is immune. Protecting your revenue requires preparing for the unexpected.
A shrinking event cancellation insurance market
Securing event cancellation insurance is not as easy as it once was. The pandemic hit the insurance market hard. Many insurers simply stopped offering this type of coverage.
The amount of protection available in the overall insurance market, known as capacity, has shrunk. Large promoters often buy their coverage months in advance. They take up a huge share of the limited capacity to protect their top-tier acts. This leaves fewer options and higher premiums for smaller and mid-tier artists. Waiting to finalize tour dates can mean missing out on coverage entirely.
3 practical steps to protect touring income
Comprehensive risk planning is essential for every artist. Whether you are a rising star or a legacy act, these steps can help protect your tour:
1. Review your promoter agreements for weather-related provisions
Know exactly what your promoter covers. If they only pay partial guarantees for weather cancellations, you can insure the rest. A separate policy can cover the unprotected portion of your income.
2. Secure coverage early in the tour planning process
If you wait, you risk having fewer insurance options. Once capacity is gone for a certain location or date, you probably will not be able to get coverage. Secure your tour insurance as soon as dates are confirmed.
3. Evaluate a broad range of weather and environmental risks
Do not assume you are safe because a venue is inland or indoors. Flooding, high winds and wildfire smoke can disrupt any event.
How to tailor your event cancellation insurance policy
You want an event cancellation insurance policy that reflects your specific budget, risk tolerance and revenue streams.
Here are three ideas to consider:
1. Partial coverage for guarantee gaps
If you cannot afford to insure 100% of your revenue, you can cover just the gap. For example, suppose your contract guarantees $100,000 per show. A weather clause reduces payment to 60% ($60,000) for a cancellation. You could buy a policy to cover the $40,000 shortfall. This offers meaningful protection with a more affordable premium.
2. Tiered deductible structures based on loss size
You can structure your policy with a changing deductible. The amount you pay before insurance kicks in can vary with the size of the loss. A higher deductible for smaller losses can lower your premium, while still protecting your bottom line.
3. Custom coverage for revenue streams and geographic exposure
Your policy can protect all your revenue streams. If merchandise sales are 30% of your tour income, insure your projected merch revenue. That way, a canceled show will not wipe out those profits. You also can design coverage to protect high-value sponsorship agreements. Some artists customize policies for specific geographic risks like a summer tour in a wildfire-prone area or winter shows in snowy locations.
The cost of event cancellation insurance can feel steep — until you compare it against potential losses. Going without insurance is a gamble, and more artists are asking , “Is it worth the risk?” Don’t let unexpected disruptions derail your tour.
Learn more about event cancellation insurance
If you would like additional information on event cancellation insurance, our entertainment insurance specialists are available to discuss coverage considerations and answer questions about emerging touring risks. You can reach the team at entertainment@risk-strategies.com or through our secure contact form.