Government-backed events industry insurance scheme to launch next month

The government has partnered with insurer Lloyd's on a £750m live events reinsurance scheme that will cover costs incurred in the case of cancellation when an event is legally unable to happen due to government Covid restrictions.

This scheme will support live events across the UK that are open to the public, such as music festivals and business events, and will see the government act as a ‘reinsurer’ – stepping in with a guarantee to make sure insurers can offer the products events companies need. The scheme will be available from September 2021 and run until the end of September 2022.

A number of insurers in the Lloyd’s market, including Arch, Beazley, Dale, Hiscox and Munich Re, are supporting the scheme, which will provide events companies with the option of purchasing cover from next month alongside standard commercial events insurance, giving them the reassurance they need to plan ahead.

Chancellor Rishi Sunak said: “The events sector supports hundreds of thousands of jobs across the country, and I know organisers are raring to go now that restrictions have been lifted. But the lack of the right kind of insurance is proving a problem, so as the economy reopens I want to do everything I can to help events providers and small businesses plan with confidence right through to next year.”

Culture secretary Oliver Dowden said: “We’ve been here for live events throughout the pandemic with billions of pounds of rescue funding. Today is an important next step as we develop live events insurance to give them the confidence they need to plan for a brighter future.”

Sacha Lord, night-time economy adviser for Greater Manchester, added: “I’m really pleased that the government has decided to introduce an insurance scheme for the events sector.

“DCMS has worked alongside and listened to event organisers throughout the crisis, and I’m grateful that they have now been able to introduce this support today.

“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.”

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