Music Festival Insurance Worries | Music News

Music festival promoters are grappling with major losses after COVID-19 cancelled events. Whilst our outlook for the virus is good, promoters face more hurdles before they can bring major events back. Promoters are struggling to get pandemic coverage that would protect them against future cancellations. Major names in the industry are calling on the Federal Government to set up an insurance scheme for them. Bluesfest had a communicable disease insurance policy and still saw huge losses, but most other events weren’t so lucky. Most events never ticked that box, as the industry ran on wafer thin margins even before COVID. Now, it is all but impossible for events to buy insurance against disease outbreaks from private brokers. This means many events are rethinking their plans for 2021 and considering holding off putting on an event for another year. Other organisers are trying to minimise their expenses until after their event has begun. Data given to ABC News by the Australian Festival Association shows music festivals pulled $2.7 billion into the Australian economy every year pre-COVID, and created almost 10,000 jobs. The Federal Government has already created an insurance scheme for some of Australia's film industry. The $50 million fund is administered by Screen Australia and covers up to 60 per cent of a filming budget. After September 11, when insurers stopped covering commercial property for terrorist events, John Howard's government set up the Australian Reinsurance Pool Corporation. In a statement, Arts Minister Paul Fletcher said music festivals and other major events could apply for grants. The Government is providing $75 million through the Restart Investment to Sustain and Expand (RISE) Fund. Music festivals and other major events are able to apply for grants of between $75,000 and $2 million under this scheme to support eligible activities. Mr Fletcher did not comment on industry calls for an insurance solution.