NL Gazette

Insurance plans that are “untenable” might put a stop to live music venues.

The COVID 19 pandemic has already hit the music venues in Ontario, and some of Ottawa have closed their doors forever. 

There is a new threat to those who have overcome the blockade and capacity constraints. Many small and medium-sized venues are facing significantly higher premiums. Erin Benjamin, President, and CEO of the Canada Live Music Association said. 

In an interview with CBC Radio’s All In A Day. “They aren’t too expensive, but certainly higher than the pre-pandemic amount.” Many of these guidelines contain “unsustainable” terms, Benjamin said. 

For example, just pour alcohol into a plastic cup or close it until midnight. She said that some places have completely abandoned comprehensive insurance and are at risk of bankruptcy if something goes wrong and they are sued. 

Not only the music industry, but many other companies in the tourism and hospitality industry are also interested in this reality.

Yusuf, Toronto-based Danish insurance broker and CEO of Zensurance, said exorbitant rates are caused by the “worst-case” of pandemic-related factors. 

“Insurers say they have fewer stores open, less deposits in the pool, paying insurance claims, and more claims, so the few remaining people I have to pay more, “Yusuf said in a day. “And some insurers are completely out of the market. This is also reducing insurance supply.”

According to Danish Yusuf, CEO of Toronto-based Zensurance and an insurance broker, the excessive premiums are the result of a “perfect storm” of pandemic-related issues.

“Insurance firms tell us that claims are increasing, but with fewer [businesses] open, fewer are paying into the pool, which then pays the claims. As a result, the few who remain must pay more “Yusuf revealed everything in a single day.

“In addition, some insurance firms are exiting the market entirely. As a result, the supply of insurance is likewise decreasing.”

Read More: ‘Untenable’ insurance policies could silence live music venues | CBC News

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