The program, called the Live Events Reinsurance Scheme, will
run from next month until the end of September 2022, the Treasury said on
Thursday in an emailed statement. The government is working with Lloyd’s of
London and will act as a reinsurer to give insurers the confidence they need to
provide cover.
According to Bloomberg news, the plan is designed to get the
£70 billion live events sector up and running again after 18 months of
coronavirus restrictions. Music festivals and other businesses have been calling
for such a program to reduce the risks of organizing an event in the face of
the threat of a resurgent virus.
“The events sector supports hundreds of thousands of jobs
across the country, and I know organizers are raring to go now that
restrictions have been lifted. But the lack of the right kind of insurance is
proving a problem,” Sunak said. “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.”
Insurers in the Lloyd’s market including Arch Insurance Co.,
Beazley Group, Hiscox Ltd. and Munich Re are supporting the program, according
to the Treasury. Events companies will have the option of purchasing cover from
next month, alongside standard commercial events insurance, it said. It will
cover costs incurred if an event is legally unable to happen due to government
COVID restrictions.