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Whether you work in event management, marketing, audio-visual or photography services – you know that a lot of work goes into making a great event.
For many businesses in 2025, a single event can be your biggest source of revenue and marketing – often serving as the showcase for your brand.
So, when you’re planning months in advance of an event, it’s important to ask yourself two things:
- What’s the worst thing that could happen?
- How can I stop it from happening?
In many cases, the worst-case scenario is your event being cancelled.
Often, an event cancellation is caused by circumstances outside your control – from severe weather conditions to sudden public health updates, which remain as relevant in 2025 as ever.
An event cancellation could involve a significant financial loss – whether it’s refunding accommodation, venue hire, catering, photography, speakers or other supplies. Not to mention, the reputation of your brand and the morale of your team could also be at risk.
For an event that may have taken months to plan, a cancellation can be a huge headache. That’s why it’s essential to understand how to protect yourself from these risks.
One of the best ways to safeguard your business against event cancellations is by having the right legals in place. Let’s walk through the legal steps you should take as an event organiser.
Step 1: Get Your Business Structure Right
Whenever we speak with businesses, one of the first questions we ask is: what is your structure? Whether you’re a sole trader, operating as a partner within a partnership, or already running a registered company, the structure you choose can significantly influence your level of personal exposure to risk. For more insight into your options, check out our article on operating as a sole trader and does business structure matter?
Running your business as a sole trader or partnership can carry considerable risks, particularly in the events industry. It means that you (and any business partners) could potentially be personally liable for unforeseen issues – from cancelled events to outstanding debts.
The last thing you want is to be burdened with deep debt from refunds and cancellations, only to later discover that your personal assets are on the line.
As such, it’s always a good idea to consider registering a company as early as possible. Setting up a separate legal identity for your business offers you “limited liability” – so you won’t be held personally responsible for any business debts.
This extra layer of protection is a smart move in an industry where uncertainty is a given. If you’re interested in a streamlined process for establishing your company, you might also want to explore our company registration service.
Step 2: Make Sure Your Contracts Are Strong
One of the most important considerations for any business is to ensure that robust contracts are in place. This is especially critical in the events space.
A well-drafted contract – even a standard form agreement – clearly sets out what you and the other parties have agreed upon. You can have contracts with clients, event sponsors, suppliers, caterers, and other service providers involved in the event.
Importantly, these contracts should outline what happens in specific scenarios – such as when an event is cancelled. Regular terms in standard agreements often include details about:
- Scope of services
- Payment terms
- Termination clauses
However, these standard terms may not be enough to protect you if an event is cancelled unexpectedly. It’s crucial to scrutinise the cancellation terms in your contract. For example, if your main client decides to cancel, your contract should clearly state the required notice period and the percentage fee payable upon cancellation.
Consider this scenario: Imagine you’re running an events management business and your largest client cancels their annual event – the cornerstone of your revenue and marketing strategy. Without clear cancellation provisions, you might not receive payment for work already done, leaving your cash flow in a tight spot. For more on protecting your interests, see our guide on contract review and redrafting.
Similarly, think about service providers like photographers, videographers, suppliers and creative agencies. If you’re investing in preparations – paying staff, ordering supplies and booking venues – you need to ensure your contracts, including the finer details of cancellation terms and fees (which can sometimes be viewed as unfair under the law if not properly handled), are carefully drafted.
Example 1
| Imagine you are running an events management business and your biggest client – whose annual event is not only your primary revenue source but also a key marketing tool – asks you to cancel the event entirely. Without clearly defined cancellation terms, you risk not being compensated for work already completed. |
Additionally, if you have already secured agreements with suppliers, caterers, and venues, you might be forced to cancel all of these arrangements. Not to mention the hassle of refunding tickets to numerous attendees, all of which could leave you in a very stressful situation.
That’s why it’s vital that your contract specifies how much notice is required for cancellation and what cancellation fees or deposit refunds are applicable.
Example 2
| You run a local restaurant providing catering for a major event. In preparation, you’ve rostered particular staff, ordered specialised food supplies, and even closed your restaurant on the day to focus your resources. If the event is cancelled unexpectedly and your contract doesn’t protect you, these sunk costs could hurt your bottom line substantially. |
In such cases, you would need a solid Service Agreement that clearly sets out your terms of engagement, including specific cancellation periods, fees, and deposit refund conditions. A well-drafted contract is your best defence against unexpected cancellations.
Step 3: Speak With A Lawyer
Ultimately, it’s always best to speak with a lawyer who can help you understand your specific business risks. In an environment as unpredictable as events management in 2025, professional legal advice is invaluable.
Whether it’s drafting contracts, setting up an appropriate company structure, or even applying for a trade mark to protect your event branding, a lawyer can help you navigate the complexities of the industry. If you’re not sure where to start, our guide on How to Choose a Small Business Lawyer is a great resource.
Additionally, beyond the legal documentation, consider reviewing your business insurance policies. With unpredictable events still a reality in 2025, ensuring that your insurance covers unexpected cancellations can provide an extra layer of protection for your hard-earned revenue.
Need More Help?
If you’re still feeling a little uncertain about how to keep yourself safe from these business risks, we’re here to help!
We’ve spoken with thousands of businesses – from freelance photographers to large corporate event managers – and helped them protect themselves from their worst-case scenarios. Whether you need assistance with contract drafting, business structure advice, or legal reviews of existing agreements, our team is always ready to lend a hand.
Feel free to reach out to our friendly team at 1800 730 617 or team@sprintlaw.com.au for expert advice tailored to your specific needs.
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