The University of Florida Gators were scheduled to play football against the University of Idaho Vandals on August 30, 2014 in what was to be the Gators season home opener in Gainesville, Florida. The football game was initially scheduled to begin at 7:00 p.m., but due to heavy rains and lightning, the start of the game was repeatedly delayed and ultimately began around 10:00 p.m. After the first play of the game – Idaho kicking off to the Gators – additional lightning appeared and forced the eventual cancellation of the game. Although the two teams could have potentially rescheduled this game for a bye-week later in the season, officials from both schools ultimately decided against it.
So – all of that is nice, but what does it have to do with insurance you say? Well, due to the financial acumen of UF Athletic Director Jeremy Foley, the Florida Gators have always maintained an insurance policy to cover any loss in ticket revenue should a game be cancelled. Prior to each home game, the University provides its insurer, Lloyd’s of London, with an estimate of both prospective ticket sales and any potential losses. If a game is cancelled or if the University otherwise incurs a total loss of ticket revenue for a game, the insurance carrier pays the University for this loss.
Since the football game between Florida and Idaho was cancelled, the University refunded the purchase price to all ticket holders and placed a claim against Lloyd’s of London for the revenue the University stood to make on these ticket sales. End result? Although the score of the actual football game ended at 0-0, the University of Florida still walked away with a cool $1,800,000.00.