After a turbulent 18 months for the events industry, operators have finally received some exciting news. In an announcement that was warmly welcomed by the entire sector, the UK government shared that it will partner with Lloyd’s of London to deliver a Live Events Reinsurance Scheme.
Here, we take a closer look at what the scheme is, how it works, and what you need to do to get protection for your event. Read on to find out more.
What is the Live Events Reinsurance Scheme?
It’s no secret that the live events industry has been desperate for financial security throughout the pandemic. Despite a number of assistance schemes being proposed, all failed to get off the ground due to the inevitability of cancellations. Now, the vaccine has given organisers the green light, and the Live Events Reinsurance Scheme will provide a further boost.
Ultimately, the scheme protects against the costs incurred due to an event being legally unable to take place as a result of government COVID-19 restrictions. With this extra layer of support, operators can have the confidence to fill up their calendars, without worrying about their business losing money or staff losing jobs.
From next month, providers will be able to offer organisers the option to purchase this cover with their standard commercial events insurance, providing the reassurance they need to plan ahead.
How will it work?
The scheme begins on 1st September 2021 and will run for 12 months. It covers the cost of an event if it’s cancelled, abandoned, postponed or curtailed due to government or local authority restrictions. Cancellations that are due to social distancing, such as calling off an event because you can’t fill the venue to maximum capacity, won’t be protected. The same goes for lack of ticket sales (even if it’s COVID-19 related), or non-appearance.
Protection won’t be available as a standalone product. Instead, it would be purchased as an optional extra alongside your existing cancellation insurance, or a new cancellation policy. As there’s a high risk associated with this type of coverage, the scheme is more expensive than traditional cancellation insurance. It will cost a premium of 5% based on the total amount insured, and have an excess of 5% or £1,000 per claim, whichever is greater.
Organisers who are holding events this September will be able to claim back costs from 1st June 2021. If your events take place from 1st October onwards, you can claim from that date.
Reach out to RiskBox
We understand that the insurance landscape can be difficult to navigate at the best of times, and the pandemic has made things much more complicated. That’s why the team at RiskBox is always on hand to help.
If you’re an operator who’s interested in taking out extra protection through the Live Events Reinsurance Scheme, or if you’d like to find out more about what that coverage entails, just get in touch. You can reach us by calling 0161 533 0411, emailing email@example.com, or completing our online contact form. We’ll get back to you soon.
Uncategorized - November 7, 2022
Blog - October 31, 2022