The UK government is reportedly to announce an insurance scheme to support live events, such as festivals, sports and theatre, so that they can go ahead during the pandemic.
Last year, insurers removed COVID-19 from their policies, so organisers have not been covered if they had to cancel because of an outbreak.
MPs have already called for such an initiative that would be similar to a £500mln scheme drawn up for the film and TV industry last year.
“Music festivals have been treated as the poor relation by the Government,” Julian Knight MP, chair of a parliamentary committee for culture, said last month.
“We repeat our call for the Government to announce an insurance scheme to cover festival organisers if events need to be cancelled as a result of Covid-19 restrictions continuing beyond 21 June.”
The Department for Digital, Culture, Media and Sport is due to respond to the committee by the end of the month.
"We are hopeful there will be an announcement," Tim Thornhill, a director at insurance broker Tysers, told Reuters highlighting the urgency of the situation.
Earlier this week, music festival Womad cancelled its 2021 edition, scheduled for next month, because of the lack of government-backed insurance.
Another festival's just cancelled, WOMAD, stating lack of Government Insurance.
Dropping daily one by one. @RishiSunak you've again turned your back on freelancers and artists and are watching the supply chain go bust.
WE NEED EVENT INSURANCE. URGENTLY.
— Sacha Lord (@Sacha_Lord) June 28, 2021
According to estimates from the Association of Independent Festivals, half of UK festivals with a capacity of over 5,000 have been cancelled.
Of the ones still going ahead, 78% were unsure about going ahead without COVID-19 cancellation insurance in place and were waiting for an announcement.
“It has seemed inevitable for some time now thanks to the Government’s inaction and refusal to give organisers any kind of safety net that would allow them to continue to invest in their businesses and the supply chain with confidence. Make no mistake – these cancellations were entirely avoidable, and Government must now change its position of reviewing insurance at step 4, as it will be far too late for most UK festivals,” Paul Reed, chief executive of the association, said.