Insurance scheme provides events industry with much-needed boost - Chamber

A government-backed insurance scheme designed to protect live events which are cancelled due to Covid-19 will give the industry a much-needed shot in the arm, business leaders said today.

The scheme will begin next month with a £750m budget to cover cancellation costs for UK music festivals and other live events that are legally unable to happen due to Covid restrictions.

It means insurance companies will provide cover for live events, with the government agreeing to act as a reinsurer - guaranteeing that any pay-outs will be funded.

The live events industry has repeatedly called for such as plan - and this was underlined in several lobbying documents produced by Greater Birmingham Chambers of Commerce since the start of the pandemic.

However, the Chamber says there are still concerns around events that become financially unviable if social distancing is introduced.

Head of policy Raj Kandola (pictured) said: “As a Chamber, we 've been calling on the Government to introduce this type of scheme for over 12 months in order to give those businesses operating in the live events sector the confidence they need to effectively plan for the future.

“The scheme will give a much needed shot in the arm to the events sector - essentially giving exhibitors the certainty they need to continue operating safe in the knowledge that support is available if future events are cancelled due to Covid-19.

“In particular, the certainty offered by the scheme will also provide a massive boost to those operating in the supply chain of the sector - safeguarding hundreds of jobs and livelihoods.

“However, there are still concerns with the plan as it doesn 't seem to cover events that become economically unviable if social distancing measures are reintroduced.

“As we pointed out in our latest lobbying document, The Final Hurdle, many firms in this sector are still facing crippling overheads and many still face uncertain futures as restrictions continue to ease.

“It 's essential the Government maintains that framework of financial support in order to help those firms get back on their feet and hopefully plan for a brighter future. ”

Paul Thandi, CEO of the NEC Group, welcomed the scheme, saying: “The 19 July was a critical milestone for the live sectors.

“We are now as industries going about rebuilding our businesses and offers for customers and audiences .

“A key ingredient is risk management and mitigation. I would like to thank the Treasury and DCMS for their understanding of what is required for our sustainable recovery of the live events industry.

“The availability of event insurance will provide vital cover for our customers, suppliers and partners and mitigate some of the current risks associated with hosting live events.

“This initiative will ensure that entertainment, leisure and business events continue to take place in the UK as we rebuild the economy and show the world we are open for business. ”

Suzanna Reid Barreiro da Silva, commercial director at Unique Venues Birmingham, said the scheme will give organisers confidence when planning events.

She added: “This news is great for event organisers to gain confidence in getting back to planning big events once again.

“It will allow big international events to start planning for their return. Here at UVB, we deliver a range of both corporate and public events, and whilst we need to fully understand the detail around the insurance scheme, it will definitely help us confirm more business from these organisations over the coming months. ”

Click here to read the Chamber's lobbying document The Final Hurdle.

Click here for our Covid-19 support grid.