The Live Events Reinsurance Scheme has launched this week to support hospitality businesses at risk of cancellation.
The £800 million initiative provides live events with the insurance products they need to go ahead “in confidence”.
Here’s what you need to know.
What is the Live Events Reinsurance Scheme?
The latest statistics suggest that the live events sector is worth more than £70 billion a year to the UK economy, employing some 700,000 staff and self-employed workers.
But following the pandemic, hospitality and events businesses have been unable to access insurance cover because of the risk of Covid-19 cancellation – such as further lockdowns and social distancing restrictions.
Launched by the Government, the Live Events Reinsurance Scheme ensures that firms have access to the insurance products they need. This includes cover against the cancellation, postponement, relocation or abandonment of events due to new UK Civil Authority restrictions in response to COVID-19.
The initiative will cover live events that are “open to the general public and are physically located in the UK”, such as live music events, festivals, sports events, trade shows and business events.
Private events such as weddings and parties would not be covered.
Is there a cap on costs claimed per event?
No, the cost indemnification scheme is “one of the only insurance schemes in the world” to not put a cap on costs claimed per event.
Which insurers have signed up to the scheme?
Munich Re, Beazley, Arch, Dale, and Ark. Further providers will be announced in “weeks to come”.
When can I use the scheme?
The scheme launched on 22 September 2021 and will be available until the end of September 2022.
“Helping events providers and businesses plan with confidence right through to next year”
Commenting on the launch of the scheme, Chancellor of the Exchequer Rishi Sunak said: “The events sector supports hundreds of thousands of jobs across the country and as the economy reopens, we’re helping events providers and businesses plan with confidence right through to next year.”
Culture Secretary Nadine Dorries added: “The pandemic has been a unique challenge to live events, from gigs to business conferences. It’s a huge relief that so many are now back up and running, but it is crucial that they can also plan for the future with confidence and this scheme helps them do exactly that.”
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