This week's bulletin includes:

  • Live Events Reinsurance Scheme Announced
  • Shape Of Events Report

Live Events Reinsurance Scheme Announced

The Government has published details of the Live Events Reinsurance Scheme which offers cost indemnification if an event has to be cancelled, postponed, relocated or abandoned due to new UK Civil Authority restrictions in response to COVID-19. All live events including music festivals, conferences and business events are eligible to purchase that additional cover, which will be available alongside standard commercial events insurance.

The key features of the scheme are:

  • 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 to 30 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 (more are expected to follow). Event organisers can now start approaching these insurers to discuss their cover.
Here is a link to the details of the scheme scheme-rules-HTML-version

Shape Of Events Report

BVEP has published a new report on the impact of the coronavirus pandemic on the events sector. The main findings of the report are that:

  • Overall event activity was down 95% across the UK during the past 12 months
  • The UK events industry lost £57 billion of value from the pre-pandemic level of £70 billion
  • 17% of event and exhibition businesses permanently ceased trading during 2020
  • 126,000 jobs were lost during the same period

However, the BVEP finds that the pandemic has also been a catalyst for change and innovation across the entire events sector and while the industry has been far more engaged with the government during this period, there is still a need for greater, deeper, and longer-term industry representation
You can access the report here