Consider this scenario:

Let’s say you schedule an event in Detroit during February. You expect to spend up to $400,000 to produce the event, with an anticipated net profit of $100,000. But a blizzard hits Detroit the day of your show, and you have to cancel.

If you didn’t purchase cancellation insurance, not only would you lose the $100,000 of anticipated net profit, but you also could still incur up to 50 percent of your anticipated expenses. Potential loss: $300,000. For a fraction of that loss, you could insure your profit and expenses.

I would never recommend going without insurance, but there are a couple things you can do to perhaps reduce your insurance expenses and still get excellent protection.

1. Purchase cancellation insurance as far in advance as possible. Insurance costs are cyclical. In fact, they’re half what they were five years ago. You may be able to save by purchasing the insurance well in advance of your actual event.

2. Consider the timing and location of events. Especially for the four cities mentioned, the risk of a potential cancellation is greater during the winter, so your insurance will be more expensive. If possible, consider moving your event to the spring, summer or fall.