RIMS receives $7.6M payout from event cancellation coverage

As the novel coronavirus quickly spread across the U.S. in 2020, RIMS, the risk management society, was forced to cancel its 2020 Annual Conference & Exhibition, one of the insurance industry’s largest networking and education events.

Now, RIMS is cashing out a $7.6 million event cancellation insurance payout covering the cancellation of the 2020 annual conference and exhibition and NextGen conference. The yearly meeting was canceled with less than two months to go before its May 3rd kick-off in Denver and was the first time the association has ever canceled the gathering.

RIMS events reportedly dropped in revenue by more than $10 million in 2020. According to a report, the RIMS events and exhibitions spent days successfully unraveling contracts with countless hotels, venues, and partners. Despite this, the pandemic had a “material financial and operational effect” on the association in 2020.

RIMS took steps to mitigate the damage the pandemic had on its finances in 2020. The company obtained a working capital line of credit to fund operating costs and liquidated some of its investment portfolio while it waited for an insurance payout.

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