We’re all familiar with the phrase “better late than never” and the Governments final implementation of an insurance scheme for the live events sector is certainly no exception. The £750 million scheme offers cost compensation if an event is forced to cancel, postpone, or relocate due to Covid-19. Perhaps a little late being 18-months after the initial start of the pandemic, the scheme will run to 30 September 2022 with a review point in Spring next year.
All live events including music festivals, conferences and business events are eligible to purchase the cover via third party insurers, which will be available alongside standard commercial events insurance.
The scheme’s key features are:
- It will cover live events that are open to the general public and are located in the UK. This includes live music events, festivals, sports events, trade shows and business events. This does not cover private events (e.g. weddings).
- To be eligible, organisers must purchase the relevant cover from participating insurers. 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 8 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 (and inclusive of) 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 expect to follow). Event organisers can now start approaching these insurers to discuss their cover.