Media & Entertainment industry update – January 2021

Jan 25, 2021

The impact of Covid-19 continues to affect the media & entertainment sector to varying degrees. Yutree Director Simon Miller takes a look at how the industry is dealing with the latest lockdown measures, the response from the insurance market and government together with where Yutree can help:

Live Events & Theatre

Last week’s news that Glastonbury will not be held this year was a tough blow for so many in the industry and again demonstrated the need for government backed insurance to underwrite major events and protect them from the impact of Covid-19. The UK insurance sector will not be in a position for many months to offer significant levels of cover for Covid-19 related cancellation claims, so unless an organiser has deep pockets, a government backed scheme for large scale events is key. That said, Glastonbury is a mammoth event with an infrastructure and cost base like few others so we’re still seeing cautious optimism from clients that festivals and events (particularly those outdoors) can still be held as we head into the summer months.

Here at Yutree, we have been involved with the #WeMakeEvents campaign which has worked tirelessly to highlight the challenges faced by the live event sector since last March. Together with lobbying and promoting the sector, the #WeMakeEvents campaign has also been active in raising much needed funds for charities that are supporting those in the industry who have been affected, both financially and with mental health issues. Please click here to see how you can donate.

Film & TV

The news from our Film & TV clients is thankfully more positive. Whilst nearly all companies have been affected during the last year, the Film & TV sector had been able to pick up work from July onwards and although the volume of productions is not back to anywhere near like 2019 levels, clients are seeing a reasonable volume of work, particularly around studio based productions and documentaries.

For larger productions or those more exposed to delays or cancellation due to the impact of the virus, the Film and TV Production Restart Scheme has been essential to provide security and confidence to production companies, broadcasters and funders. The scheme is underwritten by HM Treasury and provides cover following postponement and cancellation of productions due to causes directly related to Covid-19. Much like insurance for live events, we don’t anticipate that UK insurers will include any Covid-19 related covers for the foreseeable future so the restart scheme is crucial and has already supported over 70 productions with more applications soon to go live. Please click here for further details of the scheme or contact Simon.

Where we can help

During the pandemic, we have actively looked to assist existing and new clients by restructuring their policies and cover to help them through this period of uncertainty without compromising cover. Some of the ways we’ve being doing this include:

  • Pulling back cover for technical equipment to “premises only” – this reduces insurers exposure and as a result lowers the premium.
  • Ensure insurers are providing the normal levels of cover whilst clients premises are unoccupied.
  • Review business interruption limits. For example, many clients have adapted to virtual events and built studios in their warehouses which requires a different approach to the business interruption cover.
  • Ask insurers to acknowledge staff who are working at home or furloughed will be treated as “clerical” rather than higher rating categories such as production technicians. Again, this will reduce premium levels in the short-term now the government has extended the furlough scheme.
  • Constantly reviewing the breadth of cover offered by travel insurers. Some are excluding any claims relating to Covid-19 once travel restrictions are lifted.
  • Consider laying up vehicles that are not in use. Most insurers will consider a lower premium but would expect the vehicle to be SORN.

The Yutree team continue to work remotely until further notice but it is very much business as usual. Please contact Simon if you have any questions relating to your insurance who would be delighted to help. If you are an existing Yutree client and know of someone who we might be able to help, please put them in touch or send them a link to this blog.

Tags: , ,

News & Insights

A hub for Yutree and industry thinking