Scheme rules for the Live Events Reinsurance Scheme have been
published by DCMS.
Live Events Reinsurance
Scheme rules
Applying to the Live
Events Reinsurance Scheme
Details
On 5 August 2021, the government announced that it is partnering
with insurers to offer a cost indemnification insurance scheme
which will make cover available against the cancellation,
postponement, relocation or abandonment of events due to new UK
Civil Authority restrictions in response to COVID-19.
The Live Events Reinsurance Scheme will support live events
across the country — such as music festivals, conferences and
business events — that are at risk of being halted or delayed due
to an inability to obtain COVID-19 cancellation insurance. Cover
will be available to purchase alongside standard commercial
events insurance for an additional premium.
This intervention will support the UK’s economic recovery from
the COVID-19 crisis by giving events the confidence they need to
plan for the future, whilst also ensuring that we deliver value
for money for taxpayers.
The full scheme rules, as published by DCMS, can be found on this
page.
We have taken care to ensure that the product offered is closely
aligned with those available on the market prior to the COVID-19
crisis. Key features of the scheme are as follows:
- 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 new government COVID
restrictions.
- The scheme 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 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. The scheme will
cover a limited series, or run, of linked events, provided that
the event organiser specifies which event dates from that limited
series, or run, require cover and how much cover they are
purchasing for each.
The Scheme will run to 30 September 2022 with a review point in
Spring 2022. Cover will be available to purchase through
participating insurers. A number of prominent insurers in the
Lloyd’s market, including Arch, Beazley, Dale, Ark and Munich Re
are supporting the scheme, and we expect more to follow. Event
organisers can now start approaching these insurers to discuss
their cover.
We will be periodically reviewing the scheme to make sure it
achieves its objectives to support live events following the
impacts of COVID-19.
