The entertainment industry worldwide is worth an estimated $2.6 trillion. Although this is an industry capable of reaping huge profits, there are also risks associated with accidents and lawsuits.
Organizations in the entertainment business must have a comprehensive entertainment insurance policy. A great policy will include components like high coverage limits, equipment coverage and liability protection. Entertainment companies must understand the different types of insurance on offer and the sort of coverage they need.
The Basics Of Entertainment Insurance
Entertainment insurance is not technically a type of insurance. It is a broad term used to describe any policy aimed at the entertainment industry. There is no single insurance policy that will cover every eventuality.
Instead, companies take out a series of policies that collectively make up an entertainment insurance plan. Insurers prefer to focus on specific types of performers and creators to account for unique sets of needs. Policies are often aimed at separate industries and ventures. Entertainment insurance providers are flexible, thus allowing entertainment companies to only pay for the coverage they actually need.
Types Of Entertainment Insurance
The entertainment business contains everyone from individual creators to vast entertainment corporations responsible for holding live events and putting on huge festivals.
There is no one size fits all policy because there is no one size fits all entertainment company. For this reason, entrepreneurs should familiarize themselves with the different types of entertainment insurance on offer.
Production insurance is designed to protect producers, filmmakers, crew and anyone else involved in the making of a movie from liability claims. It also includes protection against libel and copyright infringement claims. Production insurance can be molded to the policyholder, with add-ons like cyber liability, travel accident and errors and omissions coverage. In the event that a company is sued by a third-party, production insurance will cover legal costs, damages and settlements.
Staging & Rigging Insurance
Staging and rigging form the foundations of any live indoor or outdoor event. Constructing stages and rigging is a highly skilled job with serious consequences if anything goes wrong. An accident during the building process, a music fan who injures themselves on an unstable stage or an unexpected collapse can lead to serious liability issues. This type of entertainment insurance will cover damage to the equipment, provide for any injured parties and account for legal fees/settlements.
Special Event Insurance
A special event is defined as a non-regular event of some kind that goes above and beyond the usual operations of a company. Special event insurance is the sort of insurance that covers events like music festivals. Policy holders are covered against bodily injury to workers or third-party individuals present, damage to rented property and liability.
Special event insurance can be purchased for just a single event, or short-term policies can be purchased covering a single calendar year and multiple special events.
Touring insurance is aimed at creators and performers who are either touring or are considering a future tour. Touring insurance is not just for performers who are selling out arenas across the world. Even local performers should have touring insurance to protect them in case they are involved in an accident.
Purchasing this type of insurance will cover the large costs associated with accidents during transit. It does not just protect people but also any equipment required to perform. Commercial auto insurance and general liability components are included as part of standard touring insurance policies.
Do I Need More Than One Entertainment Insurance Policy?
There is a significant amount of crossover when it comes to entertainment insurance policies. All major entertainment insurance plans will include general liability and equipment coverage. Despite similarities in the types of protection offered, entertainment companies should read through the terms of their policies to make sure there are no gaps in their coverage. The majority of production companies and performers will only need a single type of policy. Typically, the more ventures a business is involved in, the more policies they will need.
Even though general liability is found in practically every policy, this does not mean a touring insurance plan would be sufficient for holding a music festival. Touring insurance only covers performers and their equipment in transit. Insurers may even offer bespoke plans for performers and companies that require multiple types of entertainment insurance coverage.
Talk To The Entertainment Insurance Experts
Since there are no standard entertainment insurance policies, entertainment companies must think about their needs and the sort of coverage necessary to protect their interests.
If you are unsure as to how best to meet your insurance requirements, you should speak to an entertainment insurance expert. They will be able to educate you about the different insurance options available.
Speak to MFE Insurance about entertainment insurance and the most cost-effective coverage options for your venture.