COVID-19 ENTERTAINMENT LOSSES
Lloyd’s of London has indicated that it expects to pay out 3.4 million pounds in 2020 COVID-19 claims, net of reinsurance, and a representative of the syndicates has stated that many of those payments will result from the cancellation of major events, for example, the Wimbleton tennis tournament. The same source predicts these losses will continue into 2021.
But also consider the Suez disaster and its aftermath. Suppose a band’s prize trombone was on one of those nearly 400 ships stranded. What about its being a ship that was stuck in a U.S. port, say, L.A. or Long Beach because world sea traffic was jammed?
(Source: CLAIMS JOURNAL, March 3, 2021.)
This kind of insurance is not at all odd in the entertainment industry. Sometimes concert sponsors, producers of plays, movie studies, etc. are the named insureds. Sometimes the performers are the principal insureds. Occasionally ticket purchase-and-then-sales businesses are the named insureds. Of course, there can be all sorts of additional insureds, e.g., lenders or financiers.
In any case, so much for the false cliche that covid-19 triggers few covered losses. Obviously, adjusting these claims is not for less than the best, financial adjusters and examiners. Those familiar only with hail claims need not apply.
Moreover, what is odd about this form of insurance today is that it will cover some claims made because of the Suez blockage.