Government indemnity scheme makes economic sense
Tysers entertainment and sport director Tim Thornhill says the proposed , concise and low-cost Government-backed insurance scheme would create billions of pounds of economic activity .
The past year has been characterised by uncertainty . Many of us were in disbelief last April when we were told that we wouldn ’ t be returning to our place of work for a month , and it ’ s now a year later .
The uncertainty created by the pandemic and the SAGE Government guidance to stay at home has seen losses faced by so many , particularly within the insurance industry , with billions lost through event cancellation claims . To avoid further loss to this untenable situation , the insurance industry is now unwilling to provide any protection for losses as a result of communicable disease . This leaves a gaping hole in cover and it makes it impossible for event organisers to begin embarking upon future plans without the necessary insurance protection . So , what can be done ?
Business event organisers , promoters and venues all need to be as confident as possible that they will bounce back . After a year of very little or no business , companies will wait as long as they can to commit to costs until such time that they are confident that they are not going to fail . This understandable reticence to spend reserves or make further investment in the future is having significantly detrimental consequences on the supply chain . Many talented individuals and businesses have begun to work in other sectors to survive and may not come back . This will impact the cultural fabric of the UK , inbound business tourism and the future of what was once a world-leading hub for events which benefit local and national economies alike .
Through the Cultural Recovery Fund and other measures , many companies have benefited and been able to survive while not operating . Now that the Government has confidently laid out a roadmap and run successful ERP events such as the Sefton Park pilot in Liverpool , it is time to progress to the next steps and give organisers the financial confidence to re-open . This is not to provide more money , but a promise to pay if further Government intervention is required to stop events , or
“ Insurance is the final barrier preventing event organisers having the confidence to go ahead .”
Tim Thornhill , Tysers entertainment and sport director
reduce their capacity , if the roadmap to a new freedom does not progress as planned . We are hopeful that the industries have now met the high bar set by the Government to successfully move forward with the proposed scheme . It has been proven that insurance is the final barrier preventing event organisers having the confidence to go ahead with future events .
Led by Tysers , the events sector , insurance brokers and underwriters have come together to form a proposal which does not have high costs to set up and concisely shows where and how the Government can help across a number of event settings . Time is needed to plan events , which will not happen without
insurance , and we do not want to be in a position this year , when safe events can take place and organisers have not had the time to plan for them .
To ensure that events can be planned for the summer and beyond , the Government would need to give an indemnity solution for communicable disease to allow organisers the confidence to prepare and unlock the blockages in the supply chain . This will not only give hope to those who are ready to work throughout all areas of these industries , but great pleasure to those who attend the events . An indemnity scheme set up now will create billions of pounds of economic activity and save hundreds of millions in the cost of keeping the economy closed .
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