The cancellation of three Taylor Swift concerts in Vienna last week due to a foiled terror plot was a nightmare for Swifties worldwide (and not a nightmare dressed like a daydream). While the terror plot aimed at the Austrian leg of the Eras Tour was crushing for music lovers, the financial blow to Swift, the event venue (the Ernst Happel Stadium), the concert promoter (Barracuda Music), and others involved may be softened if they had adequate event cancellation coverage in place with a terrorism coverage extension.

Event cancellation insurance generally provides coverage for losses that are the direct result of the cancellation, postponement, relocation or similar alteration of an insured event that is outside of the policyholders’ control. This coverage may apply to reimbursement of purchased tickets, lost ticket sales, the entertainer’s fee, extra out-of-pocket expenses, and more.

While many event cancellation insurance policies exclude coverage for losses due to “any act of terrorism or threat or fear thereof,” policyholders often purchase a terrorism coverage extension to retain coverage for cancellation losses that are subject to such exclusions. Terrorism coverage extensions provide coverage for the insured event if it is cancelled, etc. “as a direct result of an act or threat of terrorism,” provided that the act or threat of terrorism results in an action or order by a government or public safety official that restricts the policyholder’s ability to hold the insured event as scheduled. It is important to note that these extensions may respond only to situations where there is actual terrorist activities, and not just fear of a potential act of terrorism. Such a coverage extension would apply to the cancellation of the Taylor Swift concerts in Vienna.

As is the case with all commercial insurance products, the coverage provided depends on the specific terms of the insurance policy purchased. Policyholders planning large-scale music and sporting events should take note of the various event cancellation insurance coverages offered to ensure they have adequate insurance in place and should weigh whether to purchase terrorism coverage extensions in light of rising tensions globally.