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As one of the Key Account Manager here at Event Insurance, I work with a lot of our larger event clients and brokers. There is one question in particular that often comes up that can cause a bit of confusion, and this is what the difference between Costs & Expenses or Gross Revenue Cover. I thought it would be useful to provide an overview to explain the 2 types of cover, which I hope will make it a bit clearer and ease some of that confusion

Tracey Explains About The Confusing World of Cost & Expenses and Gross Revenue Cover

So, Costs and Expenses cover.

This is the easier of the 2 options to wrap your head around as it is basically exactly what it says! This option looks to cover the costs and expenses you incur whilst arranging the event. This can include the cost of the venue or equipment hire, advertising, catering and supplies. Therefore, if the event had to be cancelled due to an unavoidable or unforeseen circumstance, this cover would put you back to the same financial position you were in prior to organising the event. Of course, this does not cover any profit or revenue you would have generated from the event, and the amount paid out would be less any revenue you may have already earned.

So, what is Gross Revenue Cover?

This cover is really designed for events that have been held previously, although it is available to first time events as well (I’ll come on to that in a minute!). So this option would not only cover your costs and expenses but also your profit – whether that came from pre-contracted ticket sales, or from on the day tickets, bar and merchandise sales. So to give you a working example,

Your Event:

£70,000 Costs and Expenses

£30,000 Forecasted Profit

Total Gross Revenue Cover Required £100,000


In the event of a claim, our Claims Manager would look at evidence from previous years’ events to be able to respond accurately to the profit / revenue aspect of the cover. Gross revenue cover is particularly popular for those events that rely on the profit made at their event to fund the next.

However, just to make it slightly more complicated, we are able to offer a variation of this, normally to first time events, called Pre Contracted Gross Revenue. So if your event had to cancel for an unavoidable or unforeseen circumstance, whilst it wouldn’t cover you for any projected on-the-day sales (as there would be no evidence from previous events to support this), it will cover you for income from pre-contracted tickets sales, exhibitors fees and pre-sold merchandise. As an example, many event organisers now offer early-bird tickets at a discounted price, and these would be covered under this cover type. This cover would also cover your costs and expenses meaning it would only be on-the-day revenue that wouldn’t be covered.

I hope this blog post has helped with your understanding between these different cover types. If I can help you with any queries, or if you are considering one of these covers for your next event, I’d love to hear from you. Please email me directly or give me a call on 01425 470360

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