NOVEMBER | FEATURE
Kill adds : “ What ’ s being recognised by government and the judiciary system [ with the leapfrog to the Supreme Court ] is the expediency with which this needs to be resolved . We ’ re pleased to see the process sped up , as many businesses are reliant on the business interruption segment of their insurance , and have been placed in a very compromised position this year .”
Fighting for security Even if these select policies do pay out for businesses in the events industry , the sector at large will still be in a perilous situation . Without insurance to cover cancelled events , organisers are loath to take the risk in the current climate . There is no way of knowing when a local lockdown could shut down an event at the eleventh hour – as happened at Southampton ’ s International Boat Show , or the final shows at Newcastle ’ s Virgin Money Unity Arena .
So should the government be providing insurance cover to help the industry get back on its feet ? Dan Rose , MD of Event Insurance Services , says there is precedent for this . He points out that there are some kinds of insurance that are too risky for insurers , such as flooding in flood-prone areas of the UK . In these cases , insurers have what is called ‘ flood re ’, or re-insurance , which essentially allows the insurance companies to be insured themselves , but to a publicly accountable body . This helps spread the risk for all involved .
Rose suggests that a similar scheme could work for events but adds that there are some obstacles in the way : “ The events industry isn ’ t really recognised as a proper industry under SIC codes . In companies house , they look like they ’ re set up as hotels , hospitality , etc . The treasury doesn ’ t look at events and think , that ’ s a big money-making area .”
Rose adds that having viable insurance is the last piece of the puzzle which many event organisers and venues are missing . The lack of security to recoup losses for cancelled events is the reason why so many organisers called events off very early in the pandemic . “ There ’ s so much uncertainty that organisers just cannot take a measured risk ,” he says .
If the protests currently taking place across the UK are heard , we may yet see a government-backed insurance scheme . It would provide the security necessary to keep a struggling industry on its feet .
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