ISM responds to Treasury-backed reinsurance scheme details
The Treasury has now released further details of the 'Live Events Reinsurance Scheme'. We have been looking at the detail and will continue to monitor the scheme.
The ISM, along with many other creative organisations have been calling for a scheme such as this for months.
It has been clear throughout the pandemic that it would be simply impossible for events to return to pre-pandemic levels without support from the Government on insurance. That is because of the lack of private provision for COVID-19 related cancellations.
The ISM and its members have worked hard to make the case for this essential support. We are pleased that the Treasury have now listened.
Our priority is ensuring that musicians can work and earn consistently, and that they are supported if COVID-19 means that their performances are cancelled.
The reinsurance scheme, which is worth over £750m and called the ‘Live Events Reinsurance Scheme’, will benefit some events and allow more organisers to plan for the future with certainty.
However, we are concerned that the scheme is limited and want the Government to provide cover for the following scenarios:
- The Government introduces regulations that make events financially unviable. For example, social distancing or lower capacity audiences.
- Instances where outbreaks of COVID-19 within performers and production teams lead to performances being cancelled. This can be devastating, particularly for smaller organisations/ensembles and productions on a limited run.
Too often musicians are hit hard by late cancellations due to the freelance nature of their work and lack of protections. The Government must recognise how difficult the pandemic has been for so many in the creative industries, and ensure that the reinsurance scheme protects people at every level of live performance.
Key features of the scheme include:
- The scheme’s Premium is set at 5% of the total value of insured costs and we are concerned that the cost may be prohibitive for some.
- The live events that the scheme is open to are very wide and includes music and festivals, sports, trade shows, and business events. Events must be open to the general public and happen inside the UK to be eligible.
- 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.
- Excess with respect to Insured Risks under each Eligible Policy will be set at the higher of 5% of the total sum insured in respect of the Insured Risks under the Eligible Policy; and £1,000. Excess need only be paid once under an Eligible Policy (rather than on a per-event or per-claim basis).
- The Scheme will run until 30 September 2022.
We will continue to examine the details of this announcement and if there are further steps that the Government should take to support our members, we will make the case to improve the scheme.
Full details of the scheme can be found here.