The Victorian Government has set up an event interruption insurance scheme as part of efforts to revive the state’s pandemic-hit live music and festival scene.

The Victorian Managed Insurance Authority will oversee the 12-month insurance program, which will be subsidised by the Government to insure up to $230 million of events against cancellation due to public health measures, or where events have reduced capacity due to restrictions.

Minister for Creative Industries Danny Pearson announced the insurance initiative yesterday, along with a $20 million Live Music Restart package for the sector.

The insurance scheme responds to calls from the sector to address a gap in the market and provide peace of mind, the Victorian Government said in a statement.

“The industry support and insurance measures mean Victorians can expect a huge season of live music, with an extensive program in the city and around regional Victoria over summer,” the statement said.

Peak body Live Performance Australia has welcomed the Victorian insurance plan and again appealed for a similar program at the Commonwealth level as well as in other states and territories.

“We congratulate the Victorian Government on being first mover to establish an insurance scheme,” CEO Evelyn Richardson said.

“Without the ability to insure against cancellation or business interruption, appetite for risk is low given the financial losses incurred since March last year.

“There are significant commercial risks involved in confidently restarting or rescheduling new events across the country, given the ongoing possibility of targeted public health restrictions being reimposed.”

Live Performance Australia says the industry lost some $1.4 billion in revenues last year and expects the financial toll will be “significant” this year given the long lockdowns in NSW and Victoria, which account for 60% of national activities.

Ms Richardson urged the NSW Government to “step up” and establish a mirror or similar scheme before the end of the year to provide greater investment confidence.

“We also call on the Commonwealth Government to step up and co-contribute to state-based insurance schemes to enable broadening of the scheme,” she said.

“As an industry that tours nationally, we have always called for a national co-contribution scheme shared between the Commonwealth and state and territory governments.

“While we acknowledge and are grateful for all the support that has been provided by governments during the COVID-19 crisis, the lack of any insurance scheme has been a major gap.

“There is a critical role for government to play in addressing this market failure.”