Sir Elton John's appendicitis could trigger an insurance payout of up to £10m.
The veteran pop star bowed out of a string of summer appearances following his diagnosis. He also cancelled concert dates in Germany and Italy.
His insurers face forking out a hefty sum to promoters across Europe who were staging the events. While some dates will be rescheduled, the cost of tickets for abandoned festival appearances will be refunded to fans.
''Artists have insurance for the promoters' liability. Elton is insured so they get their money back or they can have another concert," a source toldf the Mirror.
''It has all been taken care of and will be rescheduled. No promoter will be out of pocket.
''Elton even spoke to some of the festival promoters to apologise because he has been working with them for so long.''
The crooner was due to headline the Hyde Park festival in London on 12 June but pulled out at the 11th hour on doctor's orders.
According to his website, he is on a course of intensive antibiotics and is expected to undergo surgery. He hopes to return to the stage after recovery.
"Elton is incredibly disappointed to postpone these tour dates," a statement read.
"He is eager to be back on top form and return to play the remaining shows starting in early September."