The Government has partnered with Lloyds to deliver the Live Events Reinsurance Scheme, which will support live events across the UK that are open to the general public such as music festivals and business events.
It will cover costs incurred in the event of cancellation due to the event being legally unable to happen due to Government Covid restrictions.
The scheme will see the Government act as a ‘reinsurer’ – stepping in with a guarantee to make sure insurers can offer the products events companies need.
A number of prominent insurers in the Lloyds market, including Arch, Beazley, Dale, Hiscox and Munich Re are supporting the scheme, which will provide events companies with the option of purchasing cover from next month, alongside standard commercial events insurance.
Announcing the scheme, Chancellor of the Exchequer Rishi Sunak said: "The events sector supports hundreds of thousands of jobs across the country, and I know organisers 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."
Voices from across the events industry have welcomed the decision, although some have expressed dismay at the decision not to introduce the scheme earlier.
“I am extremely pleased that the Government has decided to introduce an insurance scheme for the events and festival sector, it stands testament to a Government that is starting to acknowledge the varying issues within the sector and through engagement, take the appropriate action to protect businesses and jobs,” says Michael Kill, CEO of the Night Time Industries Association (NTIA).
"Over 700,000 people work within this sector, it will give some comfort and certainty to supply chain and freelancers that heavily rely on this industry for their main source of income, and we would hope that with this news many will feel confident in returning to work within the sector.
“It is devastating that the timings of this scheme could not have been earlier, as we have already lost many amazing festivals and events to the uncertainty that this pandemic represents, but I feel that this scheme will allow a beleaguered sector to start to rebuild and plan with confidence for the future.”
There is no cap on the costs able to be claimed per event, and the scheme will be available from September 2021 and run until the end of September 2022.
“The events sector has been in dire straits throughout this crisis and this move will not only save hundreds of upcoming events, but will support the thousands of freelancers behind the scenes who depend on the sector for their own livelihoods," says Sacha Lord, co-founder of the Parklife Festival, co-founder of The Warehouse Project events, and night time economy adviser for Greater Manchester
“We can start to rebuild the sector with confidence, and renew the UK’s status as a global leader in entertainment and cultural events.”