Live events to be covered under a new £750M government-backed insurance policy

Live music events will be covered by a £750M insurance plan, the government has announced. The change comes amidst a flurry of grumbles from within the industry and is an attempt to boost the hospitality sector and stop cancellations due to COVID-19. 

For months, industry figureheads have been calling for the government to step in after insurance companies refused to cover them for any losses caused by the pandemic. 

Without any ‘financial padding’, organisers such as Boomtown have cancelled 2021 shows to avoid impending losses and future proof of their events moving forward.

Included in the Live Events Reinsurance Scheme, insurers will receive a guarantee from the government. This allows them to offer products to cover organisers if state COVID-19 restrictions force cancellations. 

The government’s partner on this scheme is insurance company Lloyd’s. The cover will be available from next month until the end of September 2022. 

The NTIA (Night Time Industries Association) has declared its support for the policy. 

CEO Michael Kill said: “I am extremely pleased that the Government has decided to introduce an insurance scheme for the events and festival sector, it stands testament to a government that is starting to acknowledge the varying issues within the sector and through engagement, take the appropriate action to protect businesses and jobs”. 

“Over 700,000 people work within this sector, it will give some comfort and certainty to supply chain and freelancers that heavily rely on this industry for their main source of income, and we would hope that with this news many will feel confident in returning to work within the sector”. 

“It is devastating that the timings of this scheme could not have been earlier, as we have already lost many amazing festivals and events to the uncertainty that this pandemic represents, but I feel that this scheme will allow a beleaguered sector to start to rebuild and plan with confidence for the future.” 

The scheme has been red-flagged by Labour’s Shadow Culture Secretary. Jo Stevens referred to the offering as a “bare minimum” effort.