LE Reinsurance Scheme Update for UK Festival Organisers.

The Government Live Events Reinsurance Scheme (LE Reinsurance Scheme) was introduced in September 2021 as a way to provide some financial backing to insurers for event cancellation due to Covid-related reasons. What is the current status of this scheme and what can festival organisers do to get coverage for their 2022 events?

Comprehensive guidance and information can be obtained online from the gov.uk website searching for Coronavirus (COVID-19) and Live Events Reinsurance Scheme. Their initial advice suggests organisers contact their usual insurance broker to guide them through the application process, however, they further state: 

Applicants that do not have a broker can contact BIBA (British Insurance Brokers Association) or LIIBA (London & International Insurance Brokers Association) who will offer support in finding a suitable broker. BIBA also has a list of recommended brokers on their website. 

The most important part of the application process is the timing of any application because there are strict rules regarding this. After the 15th December 2021 the rules changed and cover must now be purchased no less than 8 weeks before the event dates. Whilst this doesn’t affect many events because most festivals take place between May and September it is essential that any application for coverage is made in good time. Currently the LE Reinsurance Scheme is scheduled to run until September 2022 and what happens after that date is unclear. Perhaps the government hopes that commercial insurance underwriters will start to offer Covid-related policies but like all coronavirus issues it is far from clear.

As for the actual coverage this is far from clear with the wording having been created by insurance legal experts and even the government's own words lack clarification:  

… the government will reinsure the risk that an event is cancelled due to an ‘event being legally unable to happen due to Government Covid restrictions’. 

 Whether this includes restrictions on visitor numbers imposed by the government making an event financially unviable is unclear because the event has not been declared illegal. It's also important to note that the LE Reinsurance Scheme only covers expenses rather than any loss of profit. Looking forward to 2022 it is vital that festival organisers conduct a thorough assessment of the cancellation insurance available under this scheme and fully understand what is covered and what is not. This insurance is mostly being sold separately from the usual event cancellation insurance so it also adds an addition operating cost to running a festival. By considering all the options, likely costs and what is and is not covered some organisers may consider cancelling their 2022 festivals. Much of this consideration may come from what happens with the current Omicron variant and future variant waves. The key decision time will be the 8 week period prior to the event dates as that’s that last date that insurance can be purchased. 

For festival organisers planning their events using a software management platform like Festival Pro gives them all the functionality they need manage every aspect of their event logistics. The guys who are responsible for this software have been in the front line of event management for many years and the features are built from that experience and are performance artists themselves. The Festival Pro platform is easy to use and has comprehensive features with specific modules for managing artists, contractors, venues/stages, vendors, volunteers, sponsors, guestlists, ticketing, cashless payments and contactless ordering.

Photo by Tim Mossholder from Pexels

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