Live event organisers can now purchase insurance that will cover costs if their event has to be cancelled or delayed due to a government-imposed lockdown
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The £800 million scheme will not cover loss of revenue due to lower ticket sales, reduced venue capacity, or self-isolation of staff or acts
By IQ on 23 Sep 2021
Isle Of Wight Festival promoter John Giddings has criticised the British government’s long-awaited reinsurance scheme for live events.
The £800 million scheme, which opened yesterday (22 September), will cover costs incurred if an event has to be cancelled, postponed, relocated or abandoned due to a government-imposed lockdown in response to Covid-19.
The cover, which is a partnership between the government and the Lloyd’s of London insurance market, is now available to purchase alongside standard commercial events insurance for an additional premium.
However, Solo Agency boss Giddings tells IQ he believes the cover did not meet requirements.
“I think it’s a joke,” he says. “They want far too much money and there are too many caveats in it. I think they just keep paying us lip service like they have done all the way down the line.”
“[The British government] want far too much money and there are too many caveats in [the insurance scheme]”
Premium is set at 5% of the total value of insured costs (plus Insurance Premium Tax) and claims will be subject to an excess of 5% of the value of the insured costs or £1,000 (whichever is higher) per policy.
However, the scheme will not cover loss of revenue due to lower demand for tickets, reduced venue capacity, or self-isolation of staff or performers. “It was financially impossible and it didn’t cover the things it needed to cover,” adds Giddings.
On a brighter note, Giddings says last weekend’s return of the Isle Of Wight Festival, headlined by Liam Gallagher, Snow Patrol, David Guetta and Duran Duran, could not have gone better.
“It was incredible,” he says. “It was four days of sunshine, all the bands turned up and the audience were gagging for it. We had incredible demand and the audience were incredibly excited about being out in the open air again.
“It was complete absolute, utter luck on our behalf that the weekend in June we should have done it poured with rain every day and the dates in September, the sun shone every day and it was like an Indian summer.”
“Somebody said to me, ‘What do you think about 50,000 people in a field?’ and I said, ‘Well, it’s safer than going to the supermarket.’”
The 2021 event was switched to September due to the pandemic, but will return to its traditional weekend next year from June 16-19. The 2022 line-up is due to be unveiled on Monday morning (September 27).
“When it was obvious June was going to be a problem this year, we took the executive decision to move to September, so that we didn’t have to move another year,” explains Giddings. “We certainly had good ticket sales and a very excitable audience, but it’s such a gamble with the weather, that’s the problem.
“The good news was it got darker earlier, so the top three acts played in darkness as opposed to the top one and a half acts. But it does get cold at night, I have to say.”
In line with government guidelines, ticket-holders were required to either be double-jabbed at least 14 days before the festival, proof of a negative lateral flow test or an exemption in order to be permitted entry.
“Everybody was willing to do it and they expected it. It was a collective responsibility,” says Giddings. “Somebody said to me, ‘What do you think about 50,000 people in a field?’ and I said, ‘Well, it’s safer than going to the local supermarket.’”
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