As of September, UK music festivals and live events are to be supported by a government-led insurance scheme, which totalling £750 million, aims to cover the cancellation costs if shows are unable to go ahead due to COVID-19 constraints.
BBC News reports that as live music is only just making a return after lengthy lockdown restrictions across the country, the scheme has been welcomed by the music industry.
Festivals such as Wireless and We Are FSTVL have seen numerous re-arguments and pushbacks in the wake of the pandemic. Over 50 per cent of the scheduled festivals, this year have been cancelled, including the Truck Fest, Kendal Calling and Lovebox, among others.
The scheme will see insurance companies provide financial cover for live shows, with the government agreeing to act as a reinsurer. This means that necessary payouts will have guaranteed funding.
While there has been a mostly positive reaction to the news, The Musicians’ Union has said that the major problem with the scheme is that it does not provide cover for festivals that could face financial ruin if social distancing is reintroduced.
Michael Kill, the CEO of the Night Time Industries Association, said: “I am extremely pleased the government has decided to introduce an insurance scheme for the events and festival sector.”
“It stands testament to a government that is starting to acknowledge the varying issues within the sector and, through engagement, take the appropriate action to protect businesses and jobs… It is devastating that the timings of this scheme could not have been earlier, as we have already lost many amazing festivals and events to the uncertainty that this pandemic represents.”
Event companies can obtain the cover as early as next month, with the planned scheme set to run until September 2022.
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