Live Events Reinsurance Scheme
The WSA has been working with partners Watkin Davies to deliver support to members on the Live Events Reinsurance Scheme. The information below shares some useful background on the scheme as well as identifying the key features. If there are any questions or queries on the Live Events Reinsurance Scheme content below, please contact the team at Watkin Davies.
The background to the Live Events Reinsurance scheme
On the 22nd September 2021 the Government launched an £800 million ($1.1 billion) insurance scheme that will support live events across the country, which are at risk of being cancelled.
The Chancellor, Rishi Sunak first announced the plans for this scheme on the 5th August, in partnership with Lloyd’s and it has come following difficulties in being able source COVID-19 cancellation insurance for events.
Over the last 12 – 18 months the UK has seen a number of events cancelled due to organisers being unable to obtain the insurance, and the Government backed reinsurance scheme will help organisers plan events with confidence through to next year.
The program follows other government initiatives to support the entertainment industry such as the Culture Recovery Fund and a scheme to protect film and TV productions from the risk of cancelation.
The Live Events Reinsurance scheme’s key features are as follows:
- It will cover live events that are open to the general public and are physically located in the UK. This includes live music events, festivals, sports events, trade shows and business events. Private events such as weddings and parties would not be covered.
- In order to be eligible, event organisers must purchase the relevant cover from participating insurers within the scheme. Event organisers must also have or purchase a standard events cancellation policy (or a policy which includes event cancellation coverage) provided at least in part by a participating insurer – the cover backed by the scheme will not be offered on a standalone basis.
- Premium is set at 5% of the total value of insured costs (plus Insurance Premium Tax).
- Claims will be subject to an excess of 5% of the value of the insured costs or £1,000 (whichever is higher) per policy.
- Event organisers can purchase cover up to the full cost of their event, irrespective of when those costs are incurred.
- Cover must be purchased at least 8 weeks prior to the event taking place. This requirement will however not apply for the first 12 weeks of the scheme.
- The government’s expectation is that participating insurers will pay no brokerage in connection with the scheme and no deductions for such brokerage will be made to any premiums paid by insurers to DCMS in connection with the scheme.
- The Scheme will run until the 30th September 2022 with a review point in Spring 2022. Cover will be available to purchase through participating insurers which include Arch, Beazley, Dale, Hiscox and Munich Re with more expected to follow by application to become an eligible insurer.
The scheme will not cover loss of revenue prompted by lower demand for tickets or venue capacity, and the scheme does not cover self-isolation of staff or performers. The scheme will cover a limited series, or run, of linked events, provided that the event organiser specifies which event dates from that limited series, or run, require cover and how much cover they are purchasing for each.
For more information, WSA partners Watkin Davies will be able to assist and will also help with Event Cancellation cover as described above – please contact Watkin Davies on 02920 626 226.
For more information on the Scheme Rules please click the following link
For more information on the Live Events Reinsurance Scheme, please click the following link