The local Olympic bid committee would seek to buy $500 million in insurance to cover a loss of revenue if an event is canceled due to a major disaster, and $350 million in coverage for decreased ticket revenue if a major competitor dropped out of the Games.
The proposals are among a number of insurance policies Boston 2024 has pledged to buy in an effort to reduce the risk to taxpayers if Boston were to host the Olympics in 2024, the committee said in a statement.
The committee issued details on its insurance plans Wednesday, on the eve of its first televised debate.
On Thursday night, bid chairman Steve Pagliuca and US Olympic Committee member Dan Doctoroff will debate Olympic opponents Chris Dempsey, a co-chair of the group No Boston Olympics, and Smith College economist Andrew Zimbalist.
The 13-page document the committee released Wednesday acknowledges that, historically, the International Olympic Committee has required host cities to guarantee they will deliver the Games, potentially requiring the use of public funds if the local organizing committee cannot raise enough money to put on the event.
Olympic foes have built their campaign primarily on the issue of risk, and whether taxpayers should be on the hook for revenue shortfalls or cost overruns.
Boston 2024 laid out plans to buy $100 million in coverage for damages owed to the IOC if the city was unable to meet its obligations to host; and up to $200 million of coverage in case an Olympic sponsor could not make its payments in support of the Games.
The committee plans to buy $500 million in public liability insurance in case anyone is injured at an Olympic venue or by an employee; $250 million in coverage in case revenue is lost due to a terrorist attack; and $500 million in an “all-risk” umbrella policy, among other coverage.
Boston 2024 expects to use multiple insurance carriers to provide the coverage, the committee has said. The committee’s $4.6 billion Olympic operating budget accounts for $128 million in premiums.
The bid committee said it will require venue contractors to have insurance, including surety bonds, a type of coverage that would require the insurer to provide the money to finish a project if the contractor falters, Boston 2024 said.
Boston 2024 said it is developing its insurance plans with specialists, and included a quote from Randy Nornes, executive vice president of the insurance giant Aon Risk Solutions, suggesting the coverage plan is feasible.
“We have every expectation that the world’s insurance markets would enthusiastically support the Boston bid,” he said.
The committee said it expects to issue a request for proposals from insurance brokers by Aug. 1 , for help further developing the plan.