On 5 August, the UK government announced a Live Events Reinsurance Scheme to support the sector. The UK government also said they are working with insurers to offer a scheme available for cover against the cancellation or postponement of events due to new UK Civil Authority rules around COVID-19.
The Live Events Reinsurance Scheme will support live events across the country.
Music festivals, conferences and business events can all access the scheme. Businesses can purchase cover as well as standard commercial events insurance for an extra cost.
In order to be apply, event organisers must purchase cover from participating insurers within the scheme. Event heads must also have or purchase a standard events cancellation policy (or a policy which includes event cancellation coverage).
- A 5% premium of the total value of insured costs (plus Insurance Premium Tax) is normally set.
- Claims are subject to an excess of 5% of the value of the insured costs or £1,000 (whichever is higher) per policy.
- Event organisers should purchase cover up to the full cost of their event, regardless of when those costs are incurred.
- Businesses must purchase cover at least 8 weeks prior to the event taking place. This will however not apply for the first 12 weeks of the scheme.
The Scheme runs to 30 September 2022 with a review point in Spring 2022. Cover is available to purchase through participating insurers. A number of prominent insurers including Arch, Beazley, Dale, Hiscox and Munich are supporting the scheme. Event organisers can now start contacting these insurers to discuss their cover.