UK Government Opens $1B Live Events Insurance Scheme

People are celebrating again. The UK government launched its $1 billion insurance scheme for live events.
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– People are celebrating again. The UK government launched its $1 billion insurance scheme for live events.
It offers some, but not total protection from COVID-related cancelations.

The UK Government today, Sept. 22, officially opened its £800 million ($1 billion) insurance scheme for live events, first announced back in August.

The money protect events across the country – live music events, festivals, sports events, trade shows and business events – “against costs incurred due to the event being legally unable to happen due to new government COVID restrictions,” according to the scheme’s details.
It doesn’t cover artists unable to perform due to COVID nor a potential return of distancing measures, which would make live events economically unviable. The scheme only covers local and national lockdowns.
As the details state, “The scheme will not cover loss of revenue prompted by lower demand for tickets or venue capacity, and the scheme does not cover self-isolation of staff or performers.”
Event organizers must purchase the COVID cover at a premium from participating insurers in addition to purchasing a standard events cancellation policy, the cover “will not be offered on a standalone basis,” according to the details.
The premium is set at 5% of the total value of insured costs (plus Insurance Premium Tax). 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 eight weeks prior to the event taking place, a requirement that doesn’t apply for the first 12 weeks of the scheme, which launched today.
The scheme runs until September 2022. Full details can be found here.
Greg Parmley, CEO of LIVE said: : “The live music industry welcomes the introduction of a government-backed insurance scheme, which we have been calling for since the start of the pandemic. 
“While there are still gaps in the cover available, such as for an artist withdrawal due to catching Covid or enforced social distancing, this is an important and valuable step in the right direction and provides additional security as we head into autumn and winter. 
“After a year of almost total shutdown the industry needs a period of time where it can get back on its feet by provide the live experiences that fans are desperate for.”