Pandemic insurance will likely be a top priority for music festivals, concerts and all other major events once the coronavirus subsides … but it’s going to be a while before coverage is even possible.
This type of insurance is out of the question for festivals like Coachella, Stagecoach and EDC Las Vegas … at least in the foreseeable future, according to numerous people we spoke with in the insurance biz. The folks with whom we checked said they want to see some data on the likely resurgence and mutations of the virus. They have no data on COVID-19 and no way to price the insurance policy.
As you know … these fests were all scheduled for the spring, but have been postponed to October, and that’s just the dream. As you know, the mayors of L.A. and NYC have already said large crowds are going to probably be a thing of the past, at least for the balance of the year.
We surveyed the people throwing these events and they all say currently they aren’t covered for pandemics, but it’s definitely on their priority lists now. Problem is … if this year’s events tank, the organizers may have to eat the losses.
Steve Howell, a media & music insurance broker in the UK, breaks it down this way — you can’t buy home insurance when your house is on fire. In other words, good luck getting pandemic insurance now.
Kevin Lyman, who organized the Warped Tour, agrees … there’s no way to get COVID-19 coverage currently … period.
If these concerts are sidelined for what could be a year, everyone agrees … the financial blow will be devastating.