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“I think there is some real attraction in the idea of buying something that they can budget for now that reduces uncertainty in the long run,” Kleffner said.

John Furlong, who headed the Vancouver Olympics organizing committee, said the 2010 Games did not have any cost overrun insurance. The Vancouver Games ran into overruns while building their athletes’ village, which Furlong blames on the combination of an overheated construction market and the impact of the global financial meltdown.

“The size of the contingency in the Calgary budget — I have never seen one this strong,” Furlong said in an interview. “It’s far beyond anything I have ever seen, and it’s way higher than the one we had in Vancouver. So the level of protection this budget has, before you even dial in this insurance, is extraordinary.”

In addition to the proposed cost overrun insurance, Calgary 2026 would also be seeking several other insurance policies in the event of a successful bid. These policies would provide coverage for a range of other risks — everything from countries boycotting or not participating; technical malfunctions affecting TV broadcast; or outright event cancellation due to war, terrorism, or a global pandemic.

Calgary 2026 spokesperson James Millar said it is too early to say what these policies would cost, as potential risks will need to be assessed closer to the start of the Games.

“There are so many variables on coverage choices,” Millar said in an email. “What we choose to cover and how much is based on risk profile at the time for each instance.”

astephenson@postmedia.com

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