LONDON – As the pandemic continues to hamper the full reopening of the UK’s £70 billion+ events sector, the UK Government has created a protective umbrella to help keep retail, entertainment and other live events going as the climate continues to improve.
Announced in August, the Live Events Reinsurance Scheme compensates organisers against costs incurred when an event is cancelled due to government-imposed COVID-19 restrictions.
Created in partnership with Lloyds of London and other leading insurers as part of the government’s extensive Plan for Jobs programme, the scheme offers organisers an option to purchase additional cover on top of standard commercial events insurance. The cover offers a progressive risk-sharing per claim, up to full government cover.
Worth more than £750m and running from September 2021 to September 2022, the scheme positions the government as a “reinsurer” that can step in if necessary “with a guarantee to ensure insurers can offer the products businesses need”.
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Chancellor of the Exchequer Rishi Sunak fully supports the initiative.
“The events sector supports hundreds of thousands of jobs across the country, and I know organisers are eager to get going now that restrictions have been lifted,” Sunak said. “But the lack of adequate insurance is proving to be a problem, so as the economy reopens I want to do everything I can to help event organisers and small businesses plan with confidence into next year.”
Following other government-backed rescue and relief packages such as the £2bn Cultural Recovery Fund and over £1bn of support for the UK’s sport and leisure sectors, the scheme is drawing praise from key industry players.
Chris Skeith, CEO of the Events Industry Alliance, said: “This government-backed assurance scheme will provide much-needed confidence to a sector and its supply chain that often serves as the UK’s shop window to the world, and will enable the industry to rebuild despite the ongoing uncertainty caused by pandemics.”
The U.S. government is also working to boost travel as part of efforts to revive the events industry.
Speaking at a recent virtual forum hosted by the American Hotel & Lodging Association, Commerce Secretary Gina Raimondo said she intends to “revitalize domestic and international business travel through agencies that report to me.”
At a White House press briefing in July 2021, Raimondo announced a $750 million aid package to “accelerate the recovery of travel tourism and outdoor recreation” as part of a “$3 billion transformative economic development initiative” led by the Department of Commerce.
Contact Chris Skeith on +44 (0)1442 285 804 or chris@aeo.org.uk