There is potentially good news for the promoters of major brass band events in the UK following the announcement that the Government will provide an insurance indemnification scheme to help through to September 2022.

It comes at a time when many events have had to be cancelled due to ongoing uncertainty over the imposition or reintroduction of Covid-19 regulations, guidance and protocols that could impact on the ability for major events to be held.

Live Events Reinsurance Scheme

The Government has partnered with Lloyd's and others to deliver the 'Live Events Reinsurance Scheme' worth £750 million which will see them act as a 'reinsurer' — stepping in with a guarantee to make sure insurers can offer the products events companies need.

It is hoped that it will provide events companies with the option of purchasing cover from September 2021 to the end of September 2022, alongside standard commercial events insurance, giving them reassurance to plan ahead while also ensuring value for money for taxpayers.

This scheme will support live events across the UK that are open to the general public — such as music festivals and business events. It will cover costs incurred in the event of cancellation due to the event being legally unable to happen due to Government Covid restrictions.

Protects

The Live Events Reinsurance Scheme is a cost indemnification scheme which protects against costs incurred due to the event being legally unable to happen due to Government Covid restrictions.

If events do have to cancel, after organisers have covered the agreed excess, the government and insurers have an agreed a risk share per claim.

This starts with government paying 95% and insurers 5%, progressing to them covering 97% and 3% respectively and finally government covering 100% of costs.

The split depends on the losses incurred by the insurer from the scheme to date.

Chancellor boost

The scheme was launched by Chancellor of the Exchequer, Rishi Sunak, who stated: "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."

The scheme was also backed by Culture Secretary, Oliver Dowden, who added: "Today is an important next step as we develop live events insurance to give them the confidence they need to plan for a brighter future."

It is understood that the scheme will be delivered through insurers with events organisers able to purchase cover for government-enforced cancellation due to the event being legally unable to happen due to Government Covid restrictions, alongside their standard insurance.

Today is an important next step as we develop live events insurance to give them the confidence they need to plan for a brighter futureCulture Secretary, Oliver Dowden

Widespread support

The news has been widely supported by different sectors of the industry with Jamie Njoku-Goodwin, Chief Executive of UK Music, saying: "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."

Meanwhile, Phil Bowdery, Chairman of the Concert Promoters Association, added: "This is welcome news. The sector has been calling out for Government to act for over a year and we now have something tangible."

Greg Parmley, CEO LIVE (Live music Industry Venues & Entertainment), said: "We welcome the announcement of a government-backed insurance scheme, which we have been calling for since the start of the pandemic.

We look forward to working together over the coming weeks to determine the final shape of the policy and to ensure it can support the full return of the sector in the face of the most likely impacts of COVID."

Image: Permission of HM Treasury