Taylor Swift’s terror threat-canceled concerts could cost insurers big bucks

Taylor Swift had to call off planned concerts in Austria’s capital over a terror attack plot, and the cancellations will lead some insurers to cover a hefty amount, according to Reuters.

The outlet reported Friday that two unnamed sources “involved in insurance for her tour” said a handful of insurers will see costs associated with the cancellation of the Ernst Happel Stadium shows.

Swift is popular among insurers because she rarely cancels concerts, a third insurance source told Reuters. Her celebrity and success mean that most specialist event cancellation insurers in London would be involved in covering her tour, one of the sources said.

The sources declined to be named, citing client confidentiality.

Organizers of large sporting and entertainment events typically buy event cancellation insurance, much of which tends to be insured through the Lloyd’s of London market by a consortium of insurers. They often get terror-related cancellation coverage on top of that, according to the outlet.

As of Friday, amid the ongoing probe into the terror plot against the three Swift concerts, three suspects have been taken into custody by authorities in Austria. All three were teenagers.

Marcos Alvarez, managing director for global financial institution ratings at Morningstar DBRS, said losses from the cancellations could be in the tens of millions of dollars.