Australia's first COVID-19 event insurance launches

Australia's first COVID-19 event insurance launches | Insurance Business Australia

Australia's first COVID-19 event insurance launches

The Victorian government has launched Australia’s first COVID-19 event insurance. The 12-month scheme, that starts today, offers cover for creative, sporting, business and community events with revenue or costs ranging from $20,000 to $10 million.

“This innovative Australian-first insurance product delivers confidence and certainty for event organisers, who deliver the festivals, conferences, sport and community events that make us the nation’s event capital,” said Danny Pearson, Minister for creative industries.

Under the COVID-19 Event Insurance policies will provide a 100% payout if cancellation is forced due to public health orders from either the Victorian or Commonwealth government. If health restrictions reduce event capacity, 50% of the declared value of the event is payable.

Premiums will cost 2% of the declared event value for creative industry events and small events up to $100,000. Larger events including sports, business and community events will pay a 4% premium.

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The state government is providing up to $230 million of cover.

“Melbourne is Australia’s major events capital and every concert, theatre production or sports game helps to boost our economy and create jobs. We’re backing our events industry to bounce back strongly,” said Martin Pakula, Minister for tourism, sport and major events.

The insurance is in addition to the state Labor government’s $20 million Live Music Restart package.

COVID-19 Event Insurance will be delivered by the Victorian Managed Insurance Authority (VMIA), the Victorian government’s insurer and risk adviser.  Event organisers can apply through an online process.

Last month, respected insurance industry veteran, Dallas Booth urged all of Australia’s state government’s to seriously consider introducing Victoria’s scheme.

Two years after the COVID-19 pandemic hit Australia, the live entertainment industry continues to struggle with its impacts and the lack of insurance coverage. Stakeholders, including insurance industry experts, have called for a federal insurance scheme to help the industry recover from the impacts of the pandemic.