NOVEMBER | FEATURE
interesting to see the reaction from festivals organisers in 2022 when they are ready to buy their insurance .
“ It might be of more interest to sectors such as conference or exhibition organisers , whose main concern is a total lockdown rather than reduced capacity or the inability of an individual to appear .”
So perhaps the scheme misses the mark as well as falling some way short of it . Goebbels says : “ It is hard to see the UK Government scheme will have a positive impact on live music if promoters , artists and others involved in the financial chain of a live event feel the Covid cover is not viable .”
Independent insurance broker Tysers worked closely with the events and live music industry in campaigning for a Government-backed insurance scheme .
Tysers director Tim Thornhill says the scheme is a step in the right direction : “ While there are still some gaps that are uninsurable , the fact that there is now some cover available should create some confidence in the market and benefit the supply chain .
“ From our clients ’ perspective there is a lot of information needed to get a quote , but knowing how much the Government needs for reinsurance like this , much of this is understandable . We ’ re seeing that we have some clients where this scheme is not something they would buy into , but on the other hand there are some where this is absolutely appropriate .
“ I think this product has been created with quite a broad brush , so for something like a festival it may work better than at a tour for example , due to the lack of non-performance insurance included in the scheme .”
Private eye With the Government scheme having limited usefulness , can promoters expect help from the private sector any time soon ?
Standon Calling was one of the first post-lockdown festivals to run without cancellation insurance
Live Events Reinsurance Scheme key features
• It will cover live events that are open to the general public and are physically located in the UK . This includes live music events , festivals , sports events , trade shows and business events . Private events such as weddings and parties would not be covered .
• 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 ( or a policy which includes event cancellation coverage ) provided at least in part by a participating insurer – the cover backed by the scheme will not be offered on a standalone basis .
• 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 eight weeks prior to the event taking place . This requirement will , however , not apply for the first 12 weeks of the scheme .
• The Government ’ s expectation is that participating insurers will pay no brokerage in connection with the scheme and no deductions for such brokerage will be made to any premiums paid by insurers to DCMS in connection with the scheme .
• The scheme will run to 30 September 2022 with a review point in Spring 2022 . Cover will be available to purchase through participating insurers which include Arch , Beazley , Dale , Hiscox and Munich Re ( more are expected to follow ). Event organisers can now start approaching these insurers to discuss their cover .