GOVERNMENT BACKS EVENT INDUSTRY WITH INSURANCE SUPPORT
The government has announced a long-awaited partnership with the insurance industry to support the events sector which has been so badly hit by the pandemic.
The government has agreed to act as reinsurer, or financial backer, to enable insurance companies to once again provide cancellation cover for events that are at risk of disruption due to Covid-19. Without this support many events would face huge financial risk. The details of the scheme are still being finalised but it will run from September 2021 until September 2022.
Duncan Sutcliffe, MD of Mann Broadbent Insurance, who insure events across the UK and internationally commented: “This is fantastic news for the events industry who have had a tough time over the last 18 months. Being able to purchase cancellation cover for Coronavirus will be a real lifeline and we have had excited clients contacting us as soon as the news was announced. The finer details of what the insurance covers are yet to be revealed but this is really encouraging.”
The events industry employs over 700,000 people and is worth more than £70 billion annually. The £750 million pledged by The Treasury is estimated to create a 900% return in economic activity across the sector including live music, festivals, sporting events, conferences and exhibitions and the vast array of trades that support them.
The Chancellor Rishi Sunak said, “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.”