'Due to technical difficulties ...'
For the broadcast industry, non-appearance insurance has two meanings.
Naturally, the show must go on, be it a sporting competition, concert, awards show or other live televised event. But even when it does, technical difficulties that prevent the broadcast from reaching the radio, TV or online audience can still result in a no-show insurance claim.
"You could have a transmission failure, where either the uplink or downlink failed, that would impact your revenue stream if you sold advertising spots or it was a pay-per-view event," says Lori Shaw, executive director of the entertainment practice at Aon Risk Solutions in Charlotte, N.C.
Fortunately, settling a broadcaster's "due to technical difficulties" claim is relatively straightforward because their revenue loss is well-documented.
"It will be an auditable policy, so at the conclusion, they would provide their actual revenue figures and the policy would be adjustable based on that," Shaw says.
What the networks lack is the ability to delay a live broadcast (after all, who wants to see the Grammys the next day?) or substitute income-generating fare at the last minute.
"The networks' contracts are out there three and four years ahead," notes Moore.