£750m for New Festival Insurance Scheme

The government announced they have allocated funding intended to assist festival organisers and live event businesses. The £750 million budget is to be used as reinsurance for insurance policy which cover the risk of cancellation due government action. This new festival insurance scheme is intended to help event organisers plan with confidence through to next year.

The live events sector is worth more than £70 billion annually to the economy and supports more than 700,000 jobs. This new government festival insurance scheme will support businesses which organise live events for the general public. It will be open from September 2021, to businesses and individuals from across the UK.

This move comes as more than half of all music festivals have been cancelled this summer. But with a sufficiently high proportion of the population vaccinated, the country should be allowed to live with COVID-19 without limitations or stipulations on movement and action. However, if another lockdown is to be announced, this fund may become a saving grace for many festival and event businesses.

Its understood that this festival insurance scheme will only cover the cost incurred from a cancellation. The festival or live event must be legally unable to happen due to government COVID restrictions. Cancellation cover for COVID related issues was previously unavailable, however post-September, event organisers, businesses and individuals, will be able cover their risk of another national lockdown.

As is common with this government, nothing is ever straightforward. More details are on the horizon, however the scheme has already thrown up complications and stipulations. At Booking Protect we’ve put together a list of Need To Know information, illustrating the known details of the new festival insurance scheme.

What You Need To Know About The Festival Insurance Scheme:

  • The scheme will be available from September 2021 and run until the end of September 2022.
  • The £750 million will fund a partnership between the government and the Lloyd’s of London market, including Arch, Beazley, Dale, Hiscox and Munich Re. The government will act as a reinsurer, guaranteeing policies for festivals.
  • The scheme only covers the costs of cancellations due to the event not being legally able to happen due to government restrictions.
  • Businesses and Event organisers will be able to purchase cancellation cover that is government-backed.
  • If events do have to cancel, after organisers have covered the agreed excess, the government and insurers have an agreed a risk share per claim. This starts with government paying 95% and insurers 5%, progressing to them covering 97% and 3% respectively and finally government covering 100% of costs. The split depends on the losses incurred by the insurer from the scheme to date.
  • The full details of the cover are still unclear. More details are to follow.

What has been the reaction to the new £750m government festival insurance scheme?

The HM Treasury made the announcement early August 6th 2021 as part of their Plan For Jobs campaign.
https://twitter.com/RishiSunak/status/1423537853569675267
Rishi Sunak cities the scheme alongside the proposed £2 billion culture recovery und and the film and tv production restart scheme.

Reactions to the new were mixed:

The musicians union have been finding holes in the cover proposal

“The inability to obtain insurance has already caused many cancellations this summer. There were fears that without action we would have seen major cancellations continuing well into next year too. [The scheme is] incredibly welcome news” for both music fans and the staff involved in live event production”
– Jamie Njoku-Goodwin, the chief executive of UK Music.

https://twitter.com/TheatreTwittic/status/1423536897914179586
Many have commented saying it’s too little too late.

Finance Director of Booking Protect, Victoria Romero-Trigo said: “Today’s announcement is a fantastic glimmer of hope to the events industry which so desperately needs some good news. This could be turning the point that sees events come back in full force which the industry needs so badly. It’s important to remember though, that the devil will be in the detail and whilst good news this likely won’t be a silver bullet for events, and we’ll be closely examining the policy as more information is released.”

At Booking Protect, we have seen first hand how devastating the pandemic has been for the festival and events industry. This new festival insurance scheme is definitely a step in the right direction for the events industry’s recovery. We are eager to see the full details of this government-backed cancellation cover.

To arrange find out more from Booking Protect, check out our About Us page.

The government announced they have allocated funding intended to assist festival organisers and live event businesses. The £750 million budget is to be used as reinsurance for insurance policy which cover the risk of cancellation due government action. This new festival insurance scheme is intended to help event organisers plan with confidence through to next year.

The live events sector is worth more than £70 billion annually to the economy and supports more than 700,000 jobs. This new government festival insurance scheme will support businesses which organise live events for the general public. It will be open from September 2021, to businesses and individuals from across the UK.

This move comes as more than half of all music festivals have been cancelled this summer. But with a sufficiently high proportion of the population vaccinated, the country should be allowed to live with COVID-19 without limitations or stipulations on movement and action. However, if another lockdown is to be announced, this fund may become a saving grace for many festival and event businesses.

Its understood that this festival insurance scheme will only cover the cost incurred from a cancellation. The festival or live event must be legally unable to happen due to government COVID restrictions. Cancellation cover for COVID related issues was previously unavailable, however post-September, event organisers, businesses and individuals, will be able cover their risk of another national lockdown.

As is common with this government, nothing is ever straightforward. More details are on the horizon, however the scheme has already thrown up complications and stipulations. At Booking Protect we’ve put together a list of Need To Know information, illustrating the known details of the new festival insurance scheme.

What You Need To Know About The event Insurance Scheme:

  • The scheme will be available from September 2021 and run until the end of September 2022.
  • The £750 million will fund a partnership between the government and the Lloyd’s of London market, including Arch, Beazley, Dale, Hiscox and Munich Re. The government will act as a reinsurer, guaranteeing policies for festivals.
  • The scheme only covers the costs of cancellations due to the event not being legally able to happen due to government restrictions.
  • Businesses and Event organisers will be able to purchase cancellation cover that is government-backed.
  • If events do have to cancel, after organisers have covered the agreed excess, the government and insurers have an agreed a risk share per claim. This starts with government paying 95% and insurers 5%, progressing to them covering 97% and 3% respectively and finally government covering 100% of costs. The split depends on the losses incurred by the insurer from the scheme to date.
  • The full details of the cover are still unclear. More details are to follow.

What has been the reaction to the new festival insurance scheme?

The HM Treasury made the announcement early August 6th 2021 as part of their Plan For Jobs campaign.
https://twitter.com/RishiSunak/status/1423537853569675267
Rishi Sunak cities the scheme alongside the proposed £2 billion culture recovery und and the film and tv production restart scheme.

Reactions to the news were mixed:

The musicians union have been finding holes in the cover proposal

“The inability to obtain insurance has already caused many cancellations this summer. There were fears that without action we would have seen major cancellations continuing well into next year too. [The scheme is] incredibly welcome news” for both music fans and the staff involved in live event production”
– Jamie Njoku-Goodwin, the chief executive of UK Music.

https://twitter.com/TheatreTwittic/status/1423536897914179586
Many have commented saying it’s too little too late.

Finance Director of Booking Protect, Victoria Romero-Trigo said: “Today’s announcement is a fantastic glimmer of hope to the events industry which so desperately needs some good news. This could be turning the point that sees events come back in full force which the industry needs so badly. It’s important to remember though, that the devil will be in the detail and whilst good news this likely won’t be a silver bullet for events, and we’ll be closely examining the policy as more information is released.”

At Booking Protect, we have seen first hand how devastating the pandemic has been for the festival and events industry. This new festival insurance scheme is definitely a step in the right direction for the events industry’s recovery. We are eager to see the full details of this government-backed cancellation cover.

To arrange find out more from Booking Protect, check out our About Us page.

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