Crowds have begun to descend on Toronto and Vancouver to witness FIFA World Cup 2026 events. Insurers say there is still time to obtain insurance coverage for businesses which may not realize the level of risk to which their businesses may be exposed.
Contractors for the cities hosting FIFA events will undoubtedly have been given guidelines stipulating the level of insurance required to participate in the event. Beyond those, however, smaller organizers, some businesses, even those convening watch parties may not realize the risks that come with spikes in tourism-related business. These can include liability and business disruption but also fraud and cybersecurity issues.
What is the risk?
When engaging third parties, perhaps those without insurance of their own, the business owner or organizer of the event is ultimately responsible for any related liability. Restaurants, food suppliers and retailers can also be exposed to additional risk, simply by virtue of the sheer numbers of people frequenting their establishments.
“The question is really, do they have enough insurance?” says Tang Trang, vice president of small business insurance with TD Insurance. “The insurance they buy is typically for normal operations.” Given the large number of people involved, he points out that existing limits may not be adequate. Alcohol creates liability, extended hours may not be covered, and stores’ inventories can be significantly higher and more valuable than they might be under normal operating conditions. Typical policies will also include a list of exclusions which should already have been reviewed by business owners and their brokers.
“FIFA is an exciting event. It’s such an opportunity for them to grow revenue – it’s a nice thing. I would just advise that they can prepare by having a risk management plan,” Trang says.
The sheer volume of transactions can also expose businesses to some cyber concerns, as well.
“Businesses face higher exposure to cyber scams and fraud during large events as threat actors are targeting them for profit, as well,” says Neal Jardine, chief operating officer and president, Canada, with BOXX Insurance. The company recommends that businesses implement strict invoicing and payments procedures. “Leveraging artificial intelligence (AI) and technology, threat actors can use sophisticated social engineering tactics and deep fakes to pose as potential partners, vendors or customers to make illegitimate requests for services and goods look real.”
They add that branded channels should also be carefully monitored. Those with establishments are additionally advised to also scan for false Wi-Fi networks in their name.
FIFA celebrations also have the potential to turn difficult, dangerous and downright ugly, particularly when alcohol is being served. Those who discussed the matter with the Insurance Portal suggest hiring additional security in certain circumstances, staff appropriately (make sure there is an experienced server on every shift, for example) and hire extra staff for cleaning to prevent slip and fall issues.
“Canadians are very peaceful, but the world of soccer, sometimes it’s more passionate. We see a lot of trouble around that,” says Manoah Toninato, underwriter with Markel Play.
The companies advocate for brokers to explain to clients what the risks are. In another example, they point out that deciding to sell burgers and hot dogs at a watch party can end catastrophically if food poisoning is the end result or if an injury were to occur. “If one of them is a doctor or an engineer, you will have to make up the lost income while they cannot work. The bill can go very high, very quickly. I think a lot of people do not realize that, unfortunately,” Toninato says.
He adds that underinsurance is generally a problem for smaller companies or associations wanting to organize an event, usually without a lot of funds to do so. “The fact that they don’t have a lot of funds can lead to some questionable choices,” he adds. “That can, in turn, result in a big exposure for them.”
For more established food businesses, the insurance company representatives point out that insurers will require all servers to be certified to serve alcohol, for example. “It’s not because I want the company to spend more money on the waiter, I know it’s because we know from experience that this is what can make the difference between an event that is well organized and successful or a hot mess,” Toninato says. “I think we still live in a world where the insurance company is sometimes seen as the villain. I think we still have to shift this point of view.”
To do this, he suggests companies and their broker intermediaries need to be more open about why such conditions might exist in the first place. “The questions we ask or the conditions we set for coverage are not made to dissuade the customer.”
Get on the phone
At Markel, Toninato says the company, which deals exclusively with brokers, has a portal for special events. Brokers can bind the business online. He adds that the process for some clients can take as little as 10 minutes to obtain $5-million in coverage. (Appropriate, he says, for tournaments, bachelorettes and FIFA watch parties. “All of those small events can be covered,” he says.)
Trang suggests starting by understanding a business client’s operations, what they do and where they’re located. “Better understand the risk from an insurance perspective and with that, explain it to the customers. Was the risk understood? How do we protect them with the right insurance coverage as a package?”
Informed decisions
Finally, Trang points out that TD Insurance has focused on awareness and education to reach those who may not be aware of their need for insurance. To that end, it has included a lot of information about such coverages on its website, along with instructions on how to get access to business insurance online. “Have a dialogue around the adequate level of insurance that they would need for a big event like FIFA.”
He also recommends running a few worst-case scenarios for clients, so they have an understanding about the level of risk they are exposed to. “I know today’s business owners, they are also focused on cost savings. If they’re more willing to trade off lower cost, but self-insure with higher risk, that’s also possible but I think what’s important is to make that an informed decision.”
