Extreme Weather Means More Cancellations and Pricier Insurance. What Can Planners Do? 

The number of storms, wildfires, and floods, along with extreme heat events, rose sharply between 2023 and 2024. So did the total number of resulting event disruptions — by a staggering 86.5%, according to new research.

Outdoor events, such as festivals, have been hardest hit. The Bonnaroo festival in Tennessee was canceled this June on the first night due to heavy rain and severe weather — the second time in the last four years. 

“We generally avoid locations prone to issues during hurricane season, as well as a heightened awareness and tracking of other extreme weather events,” said one meeting planner from a Fortune 100 insurance firm. “Seasonality is more key than ever before, and we are less apt to take risks in shoulder seasons than we would have previously.”

Before booking a destination that her company hasn’t used before, her enterprise security and business continuity team does an overall assessment. If it’s a repeat destination, the planning team conducts its own due diligence to check on recent events or upcoming anticipated issues or changes. 

Surging Costs

Where there are storms, there are increases in insurance costs, and events are no different.

The growth in the number of festivals taking place, on top of adverse weather, has caused event cancellation and weather insurance premiums to triple in some cases. Many insurers now implement high deductibles — often up to 10% of insured value — or coinsurance provisions. 

Severe weather claims now account for approximately 42% of cancellation claims at Risk Strategies, according to Scott Schacter, senior vice president of the firm’s entertainment practice. That’s up from 28% a decade ago. 

Schacter says that prices had stabilized leading into 2025, “but with recent high-profile cancellations at Bonnaroo and the Soundside Music Festival, it is not outside the realm of possibility that rates could tighten the back half of the year.”

Rate increase forecasts for contingency/event cancellation already range from 2% to 5%+ in 2025. “Policies near weather-prone zones carry higher rates and stricter underwriting,” said Schacter. “Insurance providers are tightening policy terms, deductibles and/or coinsurance provisions, and underwriting scrutiny — particularly for immersive, high-risk, or outdoor events.”

And just like homeowners insurance, event insurance is becoming harder to get at all in wildfire-prone areas of California or hurricane-threatened coastal regions.

Despite this, Visit Florida plans to continue offering its Cover Your Event insurance for the 2026 hurricane seasons. The program will reimburse planners in the event of a cancellation due to a named hurricane during the Atlantic hurricane season (as established by the National Hurricane Center). It applies only to indoor meetings and conventions with room block contracts with Visit Florida partners. Claims can only be made if the event is rescheduled within 12 months at the same or nearest available venue in Florida. Other conditions apply.

Tips for Planners

There are steps planners can take to be more proactive when purchasing insurance. Schacter suggests locking in a policy in hurricane-vulnerable regions at least 30–40 days in advance to avoid being refused coverage.  

With some types of policies, known as a parametric or weather-triggering policy, payouts are automatically triggered by weather index thresholds.“These products remain niche but are gaining traction as climate volatility increases,” he said. “This can speed claims and reduce basis risk if you pair it with diversified locations or events.”

Most importantly, planners should monitor market conditions closely. “Though there was some softening in early 2025, cycles can shift abruptly after high-cost catastrophic events.”