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UK’s £800m government insurance scheme opens

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

By IQ on 22 Sep 2021

Chancellor Rishi Sunak opened the scheme today

Chancellor Rishi Sunak opened the scheme today


The British government’s highly anticipated £800 million insurance scheme for live events is now open.

The Live Events Reinsurance Scheme, announced at the beginning of August, 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.

To be eligible, event organisers must purchase the relevant cover from participating insurers within the scheme, including Arch, Beazley, Dale, Hiscox and Munich Re.

Organisers must also have or purchase a standard events cancellation policy (or a policy that includes event cancellation coverage) provided at least in part by a participating insurer.

“This is an important and valuable step in the right direction and provides additional security as we head into autumn and winter”

The indemnification must be purchased at least eight weeks prior to the event taking place. This requirement will not apply for the first 12 weeks of the scheme, which starts today (22 September 2021) and runs until the end of September 2022.

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.

The scheme will not cover loss of revenue due to lower demand for tickets, reduced venue capacity, or self-isolation of staff or performers.

“The live music industry welcomes the introduction of a government-backed insurance scheme, which we have been calling for since the start of the pandemic,” says a spokesperson from Live, (Live music Industry Venues and Entertainment) – which has been pushing for government-guaranteed insurance since at least this time last year.

“While there are still gaps in the cover available, such as for an artist withdrawal due to catching Covid or enforced social distancing, this is an important and valuable step in the right direction and provides additional security as we head into autumn and winter. After a year of almost total shutdown the industry needs a period of time where it can get back on its feet by provide the live experiences that fans are desperate for.”

Full details of the Live Events Reinsurance Scheme are available here.

 


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