cancels an event due to Covid-19 related public health concerns , then any claim will be covered . The Government or Local Authority action must be published or formally issued in writing to the insured or the event organiser , as per the scheme rules .”
Michelle Crorie , a partner at insurance lawyers Clyde and Co , explained that there was a lot of ambiguity in the wording of the scheme rules - yet to be tested by a successful claim .
She said : “ The government will reinsure the risk that an event is cancelled due to an ‘ event being legally unable to happen due to Government Covid restrictions ’. The words ‘ legally unable to happen ’ are likely to be national lockdowns , not staff or artists ’ illness , or changes in restrictions such as social distancing which have a significant impact on viability . That ’ s why we ’ re calling for the government to urgently review the scheme and make it fit for purpose .”
Lucy Powell MP
The scheme will only cover losses in the event of a lockdown – or local authority restrictions banning events taking place – but hundreds of events have been forced to cancel or postpone in the past two months because of a lack of confidence and Plan B restrictions since the emergence of the Omicron variant .
In addition , the initial grace period of the scheme has now ended meaning cover is only valid if purchased at least eight weeks before an event .
Andy Palmer , from administrators of the scheme March Commercial said that any event cancelled under anything less than a lockdown would not be covered .
He added : “ If the government or local authority , acting within its legal powers ,
“ The government ’ s Live Events Reinsurance scheme is a flop , failing to provide the safeguards the live events and exhibitions sector needs to operate alongside Covid-19 . ”
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