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A Partner In Empowerment

Group Cancellation


Solid business practice requires that we plan for the unexpected, but who could have predicted that for the past three autumn seasons businesses that earn income from hosting outside groups would suffer from devastating yet disparate events? These included a hurricane that ravaged the northeast, a government shutdown that affected businesses in or near national parks and recreation areas, and a massive manhunt that converted portions of Northeastern Pennsylvania into a virtual armed encampment, all of which caused groups to cancel or scale back their planned stays at various sites, resulting in the loss of income to their hosts.

Obtaining insurance to protect against such unusual events can be difficult as what is known as Business Interruption insurance only protects against very specific and sometimes narrow causes of loss. For example, a hurricane or other storm that closes roads and bridges (or cancels school events) fifty miles away is not covered, nor are government shutdowns or horrific events that frighten groups into cancelling.

As a result, we strongly advise that your group contracts carefully and specifically address cancellation in a way that protects you against loss of income while also being fair to your customers. In addition, we believe that your contracts should mention, and in fact recommend that the groups purchase "peace of mind" insurance, which is in reality a form of trip cancellation insurance that protects individuals or groups in the event they chose to cancel their scheduled stay at your facility. There are insurance solutions available -  AMSkier offers "peace of mind" insurance.

Below is language that you should insert into your group contracts that covers each of these occurrences. By recommending that your groups purchase Peace-of-Mind insurance, coupled with provisions that specify your rights in the event of cancellation, you should be able to minimize, if not eliminate, losses caused by a group’s unilateral decision to cancel events for any reason.




In the event Lessor cancels the lease (Your Company) shall refund all monies paid.


In the event Group cancels the lease for any reason, (Your Company) shall be entitled to the following:
$ _________  If canceled on or before  ___/___/___.
$ _________  If canceled on or before  ___/___/___.

In the event of cancellation by Group at any time thereafter, (Your Company) shall be entitled to retain all deposits and shall be entitled to additional damages for breach of contract (lost profits) whichever is greater.
In order to protect itself and its participants, (Your Company) strongly recommends that Group and/or its participants purchase EVENT CANCELLATION INSURANCE which may reimburse the group or its participants for all or part of any amounts lost.