all are touring more than they ever have
before. “These performers can make seven-figure salaries per person per appearance,
and the risks and rewards have never been
greater,” said Boyle.
Insurers take into account the length of
the tour, the amount of time performers
have to recover between dates, as well as
the complexity of the sets when determining coverage limits. Stage sets today are far
more intricate, using multi-media screens
and staging which can be damaged while
being transported between venues. Boyle
said that one performer cancelled a concert
because his screen was cracked while being
moved to the site.
Boyle said that the basic coverage for shows
and performers doesn’t change too much.
Terrorism coverage is usually excluded,
but it can be purchased in addition to the
general liability coverage. As tours get big-
ger and go to more exotic and dangerous
locales, the venues and performers will
also take out their own insurance policies
to cover their guarantees. This may include
agents insuring for their fees, the venue tak-
ing out insurance on the performer, ticket
brokers and services like Live Nation pur-
chasing a comprehensive program to cover
every aspect of a concert from terrorism to
coverage for communicable diseases.
Performers must also walk a fine line
when it comes to coverage. Even though
they know they have insurance in case
an emergency arises or the show must be
cancelled, they must act like they are uninsured. If a performer decides he doesn’t
want to go on at the last minute and figures
that insurance will cover all of the ensuing
losses, that type of event would actually not
be covered by a policy.
Boyle said occasionally they get some
unusual requests for coverage. “One per-
former wanted to insure his dog while tour-
ing. Performers frequently include close
family members and friends and children
for coverage while touring as well.”
If a performer likes to pursue high-risk
activities like race car driving or sky diving,
some policies do have a hazardous activity
exclusion that requires the insured to let
the insurance company know that he or
she is participating in the activity outside
of performing. The insurer can then decide
whether or not to cover that risk.
Most venues have dedicated risk managers who assess the risks because they want
to move it from their balance sheet to the
insurers, explained Boyle. However, it is
important to remember “that the safety of
everyone comes first, and the financial consideration is second,” he added.
Boyle said that the price of coverage has
actually dropped over the last 10 years because there are more insurers in the market
and it is easier to spread out some of the risk.
In the end, it is all about managing a variety of threats to ensure that everyone will
get paid even if the show doesn’t go on as
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