Culture Secretary Oliver Dowden says the Government will consider insuring festivals if it is the "final barrier" to them going ahead.
It will step in under two conditions: restrictions on the industry are relaxed on June 21 as planned and commercial insurers remain reluctant to offer coverage.
Dowden said: "If it's the case that events still can't go ahead as planned because of the lack of insurance and a failure of the commercial insurance market, we stand ready to look at government intervention, exactly as we did for the film industry."
"It has to be the case first that we know, can something go ahead?... I don't think it's reasonable to expect the taxpayer to provide a full indemnity for these events if it's not possible for them to happen.
"It's a different proposition if they can happen but the only thing holding them back is the commercial market won't insure them because we're risk averse.
"I think it's better to get that clarity of exactly where the gap lies once things are open and then determine the extent to which government intervention is required."