Concert promoters demand that insurance pay for cancellations

Concert promoters demand that insurance pay for cancellations

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Promoters of concerts, works by theater and, in general, from major events they demand that the Government the cost of the shows that they will have to cancel for coronavirus be assumed by insurance, as long as there is a previous contract. It is one of the requests that they have sent to the Vice President of Economic Affairs of Nadia Calvino. The Government is studying it.

The decision of the Government of cancel leisure events with a capacity of more than 1,000 people and restricting attendance in those to which less than that thousand people can go has set off alarms among the affected businessmen. They are dedicated to organizing big events in sports halls, festivals, representation with artists, musicals … and the losses are already palpable. To this we must add the hiring of eventual personnel, which will not take place when the events are suppressed.

What those affected are asking is that the Government take this contingency into account in the decree-law that will be approved tomorrow by the extraordinary council of ministers. Specifically, that they are insurance, either through the insurance companies with which contracts have been sealed or through the Insurance Compensation Consortium (CCS). For this, yes, it would be necessary to consider the coronavirus as an epidemic, as the World Health Organization (WHO), and be able to have access to these indemnities.

Government sources confirm that it is one of the measurements on the table with the possibility of being approved this Thursday at the extraordinary meeting of the Government. It must be remembered that the Insurance Consortium depends on the Vice Presidency for Economic Affairs, so it must be the department of Calvino that accounts and authorizes the decision.

The Government has already authorized the entry into operation of the CCS on the occasion of the last storm ‘Gloria that affected the Mediterranean coast last January. Then Economy considered that it was a supervening situation and agreed to release 76 million euros, according to initial estimates. The number of requests for compensation of policyholders for this phenomenon was 11,630 affected. Before, with last year’s DANA the CCS agreed to pay 420 million to those affected.

These figures may amount to nothing if this measure is approved for those affected by the coronavirus. The closure in Madrid, La Rioja, Vitoria and Labastida It affects basketball games, indoor soccer, concerts, cinemas, nightclubs, theaters … as stated in the package of urgent measures approved by the Cabinet on Tuesday. In addition, the cancellation of football matches, with all that this will entail.

At this time, the damage caused by epidemics and pandemics is outside the coverage offered by insurance. Insurance companies do not want to sign policies with this contingency due to the current uncertainty, not knowing how long it will last or what scope it will have. That makes it difficult to agree on a risk price.. Yes, it is true that there are precedents from insurers that covered in 2009 some minor cases of influenza A, how AXA or DKV.

The Government has been maintaining a constant dialogue in recent days with employers and unions facing the package of economic measures that will be released today. Then, in the afternoon, Sanchez has called a ‘super summit’ with social partners to address a joint solution to the coronavirus crisis.

This meeting with employers and unions (CEOE, CEPYME, UGT and CCOO) was called, initially, to give the starting gun to social dialogue. But the coronavirus and the urgent shock plan that will be approved this Thursday morning in an extraordinary council of ministers have pushed ahead all the forecasts. This appointment has finally been left for the afternoon, indicate government sources, so that the Government will give the green light to the measures using the decree law before the call.

In addition to Sanchez, a large representation of the council of ministers will be present at the summit of social dialogue, as explained by the same government sources. Up to eight members. The four vice presidents: Carmen Calvo, Pablo Iglesias, Nadia Calvino and Teresa Ribera. And the labor ministers, Yolanda Diaz; Social Security, Jose Luis Escriva; Industry, Reyes Maroto; and Vocational Education and Training, Isabel Celaa.


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