A Government-backed insurance scheme will support the events and hospitality sector recover in the wake of the coronavirus pandemic, it has been revealed.
The report comes after the announcement of the £750 million Live Events Reinsurance Scheme developed in collaboration with financial services provider Lloyds.
Launching in September 2021, the uncapped cost indemnification scheme will cover a “wide array of live events” at risk of disruption due to Covid-19.
The initiative comes in response to concerns that the live events industry is still struggling to access the insurance products they need to run a safe and secure event, despite restrictions being lifted earlier this year.
Under the scheme, the Government will guarantee policies to ensure businesses have access to the cover they need, such as standard commercial events insurance and cover for Government-enforced cancellation due to the event being legally unable to happen.
It will run for 12 months until the end of September 2022.
Commenting on the initiative, Chancellor of the Exchequer Rishi Sunak said the scheme will help businesses “plan events with confidence”.
“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,” he said.
“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.
“With this new insurance scheme, everything from live music in Margate to business events in Birmingham can go ahead with confidence, providing a boost to the economy and protecting livelihoods through our Plan for Jobs.”
Jamie Njoku-Goodwin, Chief Executive of UK Music, welcomed the scheme, adding that the inability to obtain insurance has been “catastrophic” for the sector.
“We are extremely grateful to Government for listening to the calls of the sector and delivering a solution to the market failure in the insurance industry.”
According to the latest statistics, the live events sector is worth more than £70 billion annually and employs some 700,000 people.