Building confidence in UK live events with Covid Event Cancellation Insurance
A UK Government-backed reinsurance scheme has been introduced to support the UK live events market.
The UK Government has partnered with insurers, who have so far collectively pledged to make around £35 million of capacity available, to deliver the Live Events Reinsurance Scheme as part of the plan for jobs. It will cover the costs incurred in the event of cancellation due to the event being legally unable to happen due to Covid-19 restrictions.
The Live Events Reinsurance Scheme is worth more than £750 million for event cancellation insurance and will be a welcome relief to the sector at a time when things are still uncertain.
What is the Government Live Insurance Reinsurance Scheme?
Now that live events have been given the go-ahead without restrictions, event organisers are keen to have and provide reassurance and confidence in upcoming events.
This scheme will allow organisers of events that are open to the general public, to buy cost indemnification cover against the risk that UK Civil Authority restrictions prevent events from legally proceeding.
The Live Events Reinsurance Scheme will support live events across the country, such as music festivals and sporting events, that are at risk of being halted or delayed due to an inability to obtain COVID-19 cancellation insurance. The government are essentially acting as a reinsurer to allow insurance companies to offer their solutions.
Companies will be able to purchase protection against certain COVID-19 event cancellation risks, this will be available to purchase alongside standard commercial events insurance for an additional premium.
In order to be eligible, event organisers must purchase the relevant cover from participating insurers within the scheme. Event organisers must also have or purchase, a standard events cancellation policy provided at least in part by a participating insurer. The cover backed by the scheme will not be offered on a standalone basis.
The Scheme will run to 30 September 2022 with a review point in Spring 2022.
The key features of the scheme are:
- It will cover live events that are open to the general public and are physically located in the UK.
- Private events such as weddings and parties would not be covered.
- Premium is set at 5% of the total value of insured costs (plus Insurance Premium Tax).
- Claims will be subject to an excess of 5% of the value of the insured costs or £1,000 (whichever is higher) per policy.
- Event organisers can purchase cover up to the full cost of their event, irrespective of when those costs are incurred.
- Cover must be purchased at least 8 weeks prior to the event taking place.