The Government has given more clarity on the rules of the Live Events Reinsurance Scheme
The Department for Digital, Culture, Media and Sport has published the headline scheme rules of the Live Events Reinsurance Scheme. The Scheme will only protect against costs incurred due to an event being legally unable to happen due to new Government COVID-19 restrictions. The Scheme will not provide cover for limitations to the maximum capacity of an event.
Several insurers in the Lloyd’s market, including Arch, Beazley, Dale, Hiscox and Munich Re are supporting the scheme. Organisers can now begin contacting these insurers to discuss cover. 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.
The Scheme will run to September 30 2022 with a review point in Spring 2022. Cover must be purchased at least eight weeks prior to the event taking place. This requirement will however not apply for the first 12 weeks of the scheme.
The announcement of the Scheme’s details comes after last week’s announcement that the Scottish Government will require live event attendees to have received two doses of a COVID-19 vaccine. It remains to be seen if Governments in other parts of the UK will follow suit.
The PPA will continue to engage with Government and monitor for the announcement of full details of the Scheme, and for announcement regarding vaccine requirements for live event attendees.