A new £750 million events reinsurance scheme will help the live events and hospitality sector to recover from Covid-19 disruption, the Government has announced.
The initiative follows concerns that limited access to insurance cover in the wake of the coronavirus pandemic was “acting as a barrier for events organisers”.
Here’s what you need to know.
What is the Live Events Reinsurance Scheme?
According to the Government, the Live Events Reinsurance Scheme will ensure businesses have access to the insurance they need to plan events “with confidence”.
The report suggests that the scheme is among the few in the world to cover almost all live events and not put a cap on costs claimed per event.
It means mass participation business events and festivals, such as Glastonbury, can go ahead as planned.
What does the scheme cover?
Alongside standard live events insurance, the scheme will cover costs for “government-enforced cancellation due to the event being legally unable to happen due to Government Covid restrictions”.
When does the scheme launch?
Businesses will be able to purchase insurance through the scheme from September 2021. It will run until the end of September 2022.
Which insurers are taking part in the scheme?
Arch, Beazley, Dale, Hiscox and Munich Re are among the insurers to have already signed up for the scheme.
“Widely welcomed” by industry
Welcoming the initiative, Jamie Njoku-Goodwin, Chief Executive of UK Music, said: “For months, UK Music has been warning about the catastrophic impact of the market failure in insurance for live events. The inability to obtain insurance has already caused many cancellations this summer – these have been devastating for the entire music industry and there were fears that without action we would have seen major cancellations continuing well into next year too.
“This new Government scheme is therefore incredibly welcome news – not just for the millions of music fans who have been looking forward to the return of live events, but also for the tens of thousands of musicians, crew members and wider supply chain workers whose jobs depend on continued live activity.”
Get expert advice today
For help and advice with related matters, please get in touch with our expert team today.