The UK government is introducing an insurance backstop to support the live events industry as it continues to be impacted by the pandemic.
The $1BN (£750M) Live Events Reinsurance Scheme will see the government act as a ‘reinsurer’ – stepping in with a guarantee to make sure insurers can offer the products events companies require.
This is a similar initiative to the Film and TV Production Restart Scheme, which has been crucial for the creative industry while producers have found it difficult to obtain traditional insurance across the last 12 months. That scheme has supported 2.6BN (£1.9BN) worth of production on Brit shores to date.
Significant live events have been able to go ahead over the last couple of months in the UK after a year of cancellations. However, the specter of Covid looms large and there is understandable trepidation across the biz about staging large scale, costly events. The Reinsurance Scheme will cover costs incurred in the event of a cancellation, including if the government introduces stricter Covid restrictions.
Organizers will have the option to purchase cover from next month, alongside standard commercial events insurance. There won’t be a cap on the amount that can be claimed. The idea is to provide peace of mind for events running into next year. Today, commentators welcomed the scheme but some said it came too late for the crucial summer season.
Chancellor Rishi Sunak said: “The events sector supports hundreds of thousands of jobs across the country, and I know organizers are raring to go now that restrictions have been lifted. But the lack of the right kind of insurance is proving a problem, so as the economy reopens I want to do everything I can to help events providers and small businesses plan with confidence right through to next year.“
Culture Secretary Oliver Dowden said: “We’ve been here for live events throughout the pandemic with billions of pounds of rescue funding. Today is an important next step as we develop live events insurance to give them the confidence they need to plan for a brighter future.”
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