NZ event industry welcomes NZD1.5 million insurance proposal

National Party proposes funding premium for event insurance cover as part of alternative Covid economic plan.

The government had rejected an earlier industry-led proposal to support the NZD1.5 million premium cost. Pictured: June's MEETINGS exhibition in Auckland.
The government had rejected an earlier industry-led proposal to support the NZD1.5 million premium cost. Pictured: June's MEETINGS exhibition in Auckland.

New Zealand's event professionals have welcomed an alternative Covid-19 economic plan proposed by the country's Opposition Party, the National Party, which would see the government fund premiums for event insurance cover.

This is the second such proposal put forward to the government following an earlier industry-led proposal to support the NZD$1.5 million (US$10.8 million) premium cost, either directly or through the Regional Events fund, for a NZD$20m policy cover.

"We had been working on this proposal with our partners EventCover since the end of last year and were able to negotiate with Lloyds, however, the idea was rejected by the Government," said Business Events Industry Aotearoa's Chief Executive, Lisa Hopkins.

In the National's official statement, Todd McClay, MP for Rotorua said: "Even under Level 2 restrictions that see businesses in many other sectors able return to normal, hospitality and tourism businesses are still faced with restrictions on the number of customers they can have on their premises or the way they are allowed to interact.

"Tourism and hospitality businesses need support and certainty. They have been left to fend for themselves and are now desperate."

Other proposed measures include NZD100 'dine and discover' vouchers to support the hospitality industry and local businesses, and extending outdoor seating into public spaces in safe manners.

Business events will be an important part of the solution, says BEIA's Lisa Hopkins.
Business events will be an important part of the solution, says BEIA's Lisa Hopkins.

While the Opposition Party's plan has no actual impact on government policies, New Zealand's events sector has offered its support for the proposed target of ending lockdown restrictions upon hitting 85-90% vaccination rates or 1 December.

And more importantly, McClay indicated that the National’s proposal will "retarget" unspent money from the Regional Events fund — which would mean "a NZ$50m fund to allow major events, such as festivals and concerts go ahead with confidence, avoiding the significant financial losses incurred by organisers, customers and suppliers," said Hopkins.

“The business events sector has lost 78% of its value since Covid-19. Despite this, many businesses have stayed open, albeit with significantly reduced staff and — for the small businesses — off the back of investments and savings.

“Like so many in tourism and hospitality, the events sector, including business events will be an important part of the solution.”


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