Insurance news from Boston Olympics Bid Committee suggests coverage will reduce expense

Olympics insurance news

The leaders behind the bidding for the 2024 Summer Olympics say that the right policies would save taxpayers money.

The members of the Boston Olympics Bid Committee that are responsible for putting together the bidding for the city for the 2024 Summer Olympics have now released insurance news details in saying that they would be able to purchase coverage at unprecedented levels in order to reduce the expense to Massachusetts taxpayers.

A document was released by the bid committee that described a minimum of 8 types of necessary coverage.

This insurance news showed that there would be a level of coverage required that has never before been purchased for an event in the United States. The purpose of the various kinds of policy would be to minimize the potential risk to taxpayers if unanticipated costs should occur in relation to the planning, development, or holding of the event. The private bidding organization has released preliminary estimates that have suggested that purchasing this insurance coverage would likely come with a price tag of $128 million. It also pointed out that it would be paying for that cost, entirely.

This insurance news also came with a list of the types of peril that would be covered under the policies.

Olympics insurance newsAmong the items that were on the list were:

• Event cancellations that occur as a result of unforeseeable occurrences such as labor strikes, natural disasters, or terrorism
• The costs associated if a game’s sponsor is unable to meet the financial obligations to which it had agreed.
• The expenses associated with reduced ticket sales and attendance if an event’s appeal plummets as a result of the withdrawal of a competing country, in including the impact on broadcast revenues and advertising.

That said, a local group that is standing in opposition to the bid for the Olympics, called the “No Boston Olympics” group, has stated that the plan outlined in this insurance news would not offer taxpayers the protection needed from overages should the budget estimates for the building costs be too low, or if the planned project scope alters as time passes.

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