This month ’ s catch up …
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Government-backed insurance scheme ‘ not a panacea ’
Kilimanjaro Live CEO Stuart Galbraith ( right ) aired his frustration at the limitations of the recently announced Government-backed insurance scheme .
Galbraith , who is the Concert Promoters Association vice-chairman , said , “ We ’ ve still got to look at the detail of it , but DCMS announced the scheme pretty much without any consultation with the industry at all .
“ This is very disappointing because we ’ ve been lobbying and trying to get into detailed discussion with them for over a year .
“ I think it will get some take-up but it is certainly not going to provide a panacea to enable all the shows to come back that would have come back .
“ The full details of the scheme have not been published , it starts in September and we ’ re looking forward to understanding how it works and also being very clear on the areas that it won ’ t provide cover for .”
On the areas that the scheme won ’ t provide protection for , Galbraith said , “ What is the point of having an insurance scheme that is essentially to enable you to run shows and protect against Covid , if it doesn ’ t cover the artists getting the disease ?”
Reacting to the news that promoters have to pay a premium equating to 5 % of show costs , Galbraith said , “ I don ’ t think anyone is afraid of paying a sensible premium , and I think 5 % is okay , but it ’ s got to be a policy that is fit for purpose and if social distancing issues and key man cover are not part of the policy , you have to question if it ’ s actually going to have any use .”
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The Government has announced it will provide an insurance cancellation scheme to cover events against the impact of having to shut down due to a Covid-19 lockdown .
The events industry had been calling for a scheme for more than a year , and on 1 July , secretary of state for Digital , Culture , Media and Sport ( DCMS ) Oliver Dowden said the Government was poised to provide cancellation insurance for the live event sector from 19 July , should the commercial market not be in a position to provide it .
Festival Republic MD Melvin Benn said the DCMS had worked very hard to secure the scheme : “ I have to say that any delay is not due to a lack of effort from the DCMS .”
The Government said it had partnered with Lloyd ’ s to deliver what it is calling the Live Events Reinsurance Scheme , which will see it act as a reinsurer – stepping in with a guarantee to make sure insurers can offer the products events companies require .
It said there will not be a cap on costs claimed per event , with event organisers able to purchase cover for Government-enforced cancellation due to the event being legally unable to happen due to Government Covid restrictions , alongside their standard insurance .
Insurers in the Lloyd ’ s market to support the scheme include Arch , Beazley , Dale , Hiscox and Munich Re . Events companies will have the option of purchasing cover from next month , alongside standard commercial events insurance .
In a statement , HM Treasury said the scheme 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 because of Government Covid restrictions .
Association of Independent Festivals CEO Paul Reed said , “ It is positive that festival organisers will now have an option for Covid cancellation . The scheme doesn ’ t , however , cover a festival needing to reduce capacity or cancel due to social distancing restrictions being reintroduced , so it remains imperative that Government continues to work with the sector in areas such as Covid certification to try and avoid such an eventuality and ensure that organisers can plan with increased confidence for 2022 .”
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