Government introduces Live Events Reinsurance Scheme to help revive the events industry
With Covid-19 changing so rapidly many live event companies and staff have suffered from the lack of certainty in the industry
Some of the biggest calendar events have had to be postponed or cancelled due to the uncertainty of the Covid-19 pandemic. Music festivals such as Glastonbury are a part of the £70 billion live event industry which supports more than 700,000 jobs, including small businesses and the self-employed.
Jamie Njoku-Goodwin, chief executive of UK Music, said: “For months, UK Music has been warning about the catastrophic impact of the market failure in insurance for live events. The inability to obtain insurance has already caused many cancellations this summer – these have been devastating for the entire music industry and there were fears that without action we would have seen major cancellations continuing well into next year too.
What is the government Live Events Reinsurance Scheme?
The UK Government has partnered with Lloyd’s bank to deliver the Live Events Reinsurance Scheme as part of the Plan for Jobs. It will cover the costs incurred in the event of cancellation due to the event being legally unable to happen due to Covid-19 restrictions. Effectively the government is acting as a reinsurer to allow insurance companies to offer their solutions. The Live Events Reinsurance Scheme is worth more than £750 million so the scheme is highly welcomed to get the sector back up and running.
Lloyd’s CEO John Neal said: Lloyd’s has stood by its customers throughout the pandemic, and we are pleased to strengthen those efforts by partnering with the UK government to deliver the Live Events Reinsurance Scheme. This unique and critical cover will enable live events to resume around the country with confidence as society begins to reopen and begin its recovery, and we are proud to be playing our part.
What does the Live Events Reinsurance Scheme have to offer?
With insurance cover for events highly expensive or unavailable, many large events simply couldn’t go ahead. This scheme aims to allow event companies the reassurance they need to plan for next year’s events. It is the only insurance scheme in the world to cover such an array of events and not put a cap on costs claimed per event. The government-backed insurance will be available from September 2021 – September 2022. The economy has been offered a restart after the pandemic and the scheme has allowed many workers the opportunity to return to the sector with more reassurance on their income safety. ‘’Our events industries are not just vital for the economy and jobs; they put Britain on the map and, thanks to this extra support, will get people back to the experiences that make life worth living’’. The culture secretary, Oliver Dowden
The scheme will help not only give reassurance to the live events industry, but it will also bring in much needed income for the economy supplying jobs to thousands of people.
As the live industry sector have reported on average businesses have a £2,398,600 value loss.
Industry reaction to the announcement
Whilst the majority of those in the industry are thrilled with the scheme many are questioning if it is enough. As the Insurance only covers in the event government restrictions mean the event is illegal to run. But for many, the social distancing restrictions we have been living with much of the pandemic mean events are not able to make enough profit at a lower capacity. Chris Smith, the Womad festival director. “What can you say that’s not offensive?” he said when asked for his reaction. “Anything to support the industry going forward is a positive, but it has come too late for so many organisations like ours who have lost the summer and need not have done. It is just another blow really that more could have been done.”
However, whilst many are angry the scheme did not come earlier the majority are thrilled it has finally arrived. Lesley Robinson, CEO of British Marine, the organisers of Southampton International Boat Show said: The announcement of the Live Events Reinsurance Scheme could not have come at a more critical point for us and is the news that we, and the entire events industry have been desperately calling for, so we welcome this scheme.
Here at GottaBe! we are thrilled to welcome the Live Events Reinsurance Scheme so we can continue to support our customers with their live events such as Re:Claim festival in Southampton. As a company, we have a large pool of brand ambassadors which we employ for live events as well as many other assignments.
One of many things we can help you with when planning an event is an Event checklist and our experts are full of helpful advice to ensure the event is covered and runs smoothly. If you want to enquire about the support GottaBe! can offer a live event, just give us a call on +4423 8063 4283 or complete our contact form and we can schedule a chat.