Entertainment is one of the fastest growing global industries. Box office receipts in the United States alone accounted for $11 billion in 2019. Entertainment insurance is a collection of policies covering every aspect of the industry through every medium of art.
Events in the entertainment business usually require expensive electronic equipment and an entire management team. It is vital that entertainment companies have appropriate coverage to cover their equipment, employees and any liability claims brought against them. Entertainment insurance ensures creators and workers are protected against all potential risks.
What Is Entertainment Insurance?
The term ‘entertainment insurance’ does not pertain to a single type of policy. Rather, it refers to a collection of policies covering different aspects of the industry. These different insurance policies include touring insurance, production insurance and special event insurance.
Policy holders need only pay for the coverage they need given that there is not a single type of entertainment insurance.
The Benefits Of This Policy
Entertainment insurance is beneficial because it covers all manner of risks. Due to the production costs involved in putting on a show, event or festival, it is essential that any company involved has adequate coverage. A tour bus crash, stolen equipment or a flooded event venue could cost tens of thousands of dollars if the right insurance policy is not obtained. Perhaps the greatest benefit of entertainment insurance is flexibility. Entertainment ventures need only pay for the coverage they actually use.
Protect From Liability
All entertainment insurance policies come with liability protection. In the event someone experiences an accident, any settlements, medical expenses and attorney fees are covered by the policy. These general liability proponents do not just protect your employees. They also cover accidents involving independent contractors and employees from other companies.
Shield From Libel & Copyright Claims
Copyright infringement and libel claims are a natural part of the entertainment business. The majority of copyright claims are settled for small amounts out-of-court, but more complex cases may require a formal legal defense. Serious copyright cases can require hundreds of thousands of dollars in legal fees and years of time. Entertainment insurance shields creators and production companies from such claims. In the event of a libel or copyright claim, the insurance policy covers legal fees and settlements.
General Liability Coverage
General liability coverage should be considered an essential component of any entertainment insurance package. This type of coverage covers accidents involving a third-party, such as a member of the public. For example, if someone slips and sustains bodily damage in the crowd at a gig, they have a right to sue for medical expenses, damaged property and additional damages. A general liability policy would cover the litigation costs in full, not taking into account any deductibles.
Mitigate Risks At Events
Insurance is the most powerful tool businesses have to mitigate risks at any events they hold. The entertainment business is all about events. An insurance policy mitigates the financial risk incurred by holding these events. Purchasing the right coverage ensures businesses are protected against liability and damage to expensive equipment.
Protection From Hefty Legal Costs
Legal costs for accidents and copyright claims can swiftly spiral out of control. In the event of a serious accident resulting in life-changing injuries, legal costs can result in six-figure sums. Entertainment insurance covers all legal costs, up to a limit. Insurers do, however, offer umbrella insurance policies. Known as excess policies, these provide enhanced coverage limits to defend businesses against major lawsuits.
Covering Expensive Equipment
Events in the entertainment industry tend to involve sets and equipment costing thousands of dollars. A band’s instruments alone can cost thousands of dollars to purchase and maintain. Entertainment insurance covers specialist equipment. Policyholders should read their policies carefully to ensure all their equipment is covered. Some insurers may require additional coverage for certain types of equipment. Superior entertainment insurance policies may also have provisions for replacement equipment so that entertainment companies can continue to operate in the event of an accident.
Auto Coverage For Transit
Touring bands and production companies must be aware of the risks associated with transit. General liability policies are not sufficient to cover major commercial auto accidents. Specialist auto coverage for entertainment companies provides coverage for equipment and people who are on the move. Liability proponents continue to provide protection if a third-party company or member of the public is involved in an accident.
Speak To An Entertainment Insurance Agent
Insurers specializing in entertainment insurance offer wide ranging types of coverage for all types and sizes of entertainment companies. Coverage ranges from commercial auto insurance to copyright claim protection. Every entertainment venture has different needs which is why it is important to speak to an experienced entertainment insurance agent about your requirements.
Get in touch with MFE Insurance to find out more about the different entertainment insurance options on offer.