The government’s announcement last week of a £750 million insurance scheme for events that have to be cancelled due to Covid-19 has been met with an overall warm reception from the UK’s events industry.
Numerous events that were scheduled to go ahead this summer, including several high-profile music festivals and theatre shows, have been forced to cancel for pandemic-related reasons. This has caused severe disruption to those working in the events industry, which includes thousands of freelancers, and prompted increased calls for a government-backed insurance scheme to help protect events.
Under the new Live Events Reinsurance Scheme, the government will partner with insurance market Lloyds to provide cover. The scheme will see the government act as “reinsurer”, guaranteeing cover for events companies.
Costs claimed per event will not be capped and organisers will be able to buy cover for costs that they incur as a result of Covid-19 restrictions or other government-enforced cancellations. Cover under the scheme can be purchased from September.
The announcement has largely been welcomed for the positive impact it will have for the events sector’s largely self-employed workforce. Sacha Lord, Greater Manchester’s Night Time Economy Adviser and co-founder of Parklife festival, said: “The events sector has been in dire straits throughout this crisis and this move will not only save hundreds of upcoming events, but will support the thousands of freelancers behind the scenes who depend on the sector for their own livelihoods.”
However, the scheme was met with some criticism, with several pointing out that it has been introduced too late to help the numerous large events already cancelled this summer. Meanwhile, there were also criticisms from some in the theatre industry, who said the scheme was too expensive and would not cover theatre shows forced to cancel due to staff isolating.
