Los Angeles Requests $650 Million Insurance for 2028 Olympics
• Los Angeles city officials have asked the LA28 Olympic organizing committee to secure a $650 million event cancellation insurance policy to cover potential losses if the 2028 Summer Olympics are canceled due to unforeseen disasters. City Administrative Officer Matt Szabo emphasized that such insurance has been standard practice for most Olympic Games since
• The request also includes a provision for LA28 to cover any losses exceeding the insurance limit. This move follows financial challenges faced by the Tokyo 2020 Olympics, which incurred significant losses due to the COVID-19 pandemic. LA28 has stated that it is engaging with the city to meet its insurance obligations under the Games Agreement.
Impact & Risks
The insurance request aims to protect Los Angeles taxpayers from financial liabilities in case of event cancellation due to natural disasters, terrorism, or other emergencies. Without adequate coverage, the city could face significant financial exposure, as it is the financial backstop for the Games. The Tokyo 2020 Olympics, which faced a $3 billion loss due to pandemic-related restrictions, serves as a cautionary example. The lack of sufficient insurance could strain the relationship between LA28 and city officials, potentially impacting the Games' planning and execution.
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