Sports events face insurance uncertainty

Major sports events working to get back up and running after a year of cancellations and disruption may have a new problem.

Insurers are either removing cover for cancellation due to infectious diseases, or massively ramping up premiums.

One event that is covered by an existing pandemic policy is Wimbledon.

It was due to take place this week, but the tennis event was cancelled earlier this year.

Organizers have said it's unlikely they will be able to get similar cover in future.

Another tennis tournament - the Australian Open - also said this insurance will be hard to get at least in the short term.

World Athletics said that as far as it was aware insurance polices were no longer available for the coronavirus.

Lloyd's of London estimated insurers will hand over $100 billion in pay-outs this year for cancelled sports, music and industry events.

Insurers said they will need government help if they are to provide pandemic cover in future.

Brokers claim the few insurers still offering cover were asking for an upfront premium of up to 50% of the amounts insured.

That's compared with a fraction of a percentage point before the outbreak. Few events are expected to pay that kind of price.

There is one compensation though.

With most events now played behind closed doors, organisers no longer have to insure against injury to spectators.