Eventric recently welcomed entertainment insurance broker
Doodson Insurance Brokerage to our
Live Marketplace. Anyone who really understands the live event business knows that one of the keys to success is managing risk. And "risk" is not just catastrophic events. Risk is the chance that any one of dozens of scenarios could occur that can turn a planned profit into a loss - financially or artistically.
From our discussions with various tour managers, business managers, and artist managers there seems to be a lot of conflicting information about risk management inn the industry, so we took the time to ask 6 questions to a guy who knows - Paul Bassman, President of Doodson Insurance Brokerage (merged last year with CSI Insurance). Paul was in the music industry for many years as a manager and A&R guy before moving his talents to the entertainment insurance business. (Let's just say he probably lowered his risk a little bit with that career move.)
1. What are some of the essential coverages that an artist or a touring organization should have for itself while out on the road?Every artist on the road is exposed to liability from several different areas.
- Tour Cancellation Insurance - if the artist or essential member of the crew is to have an accident, become ill or die the tour cancelation policy will cover lost revenue from the date(s) or cover the costs of rescheduling. The policy and also be extended to the death, accident or illness of an immediate family member of the band or essential crew. This way if something unfortunate happens to an immediate family member the policy will cover revenue lost from canceled shows or cover rescheduling costs. The policy also covers non appearance for any other reason imaginable (unless specifically excluded).
- General Liability - If a 3rd party is injured because of something the band or crew does wrong, this is the insurance that will respond.
- Business Auto – If you own a van then this is essential. Even if you are renting a bus it's still important to carry this insurance because just about everything auto related is excluded from the general liability policy. It fills the gaps.
- Equipment Coverage (inland marine) – naturally if your gear is damaged or stolen you need this policy so you can buy new stuff. This covers gear both rented and owned.
- Workers Compensation - This insurance is very often overlooked but is essential for you to carry. In fact in most states it is mandatory for all businesses to have this insurance in place with hefty fines levied if you are caught without. Even if you are exempt legally you should still have it because if a band or crew member is injured on the job this policy will pay for medical and rehab costs and provide disability pay. It also fully shields your company from lawsuits from your crew.
There are a few others that are important but since they aren't as essential I won't go over them in too much detail now. Things like insurance for copyright/trademark infringement, sexual harassment, wrongful termination and so forth.
2. Are there some coverages that should be in place even when not touring?It is advised to have all of these coverages even if not touring. Incidents happen in studios, rehearsal rooms, CD signings and so forth.
3. There seems to be quite a bit of things that can go awry - even deadly - in this industry. Some incidents come to mind are the the Indiana State Fair incident, cancellation of the Dave Matthews Band Caravan shows because of Hurricane Irene, a stage collapse in Belgium, and the roof collapse at the Cheap Trick performance at the Cisco Ottawa Bluesfest in Canada. We've also heard lately about tour buses crashing, gear stolen from gigs, and tours cancelled due to sickness. Is this inherently a "risky business"? Should we be surprised with all of the variables that exist that sometimes shit happens?This business is definitely more risky than a typical office or retail store but certainly not any riskier than a construction site or mining operation. This has been a particularly crazy summer for incidents and hopefully this isn't some kind of trend.
4. Artists do not typically put on their own events and most of the risk is taken on by the promoter and the venue. Do you think artists and their management should be more concerned that the promoter/venue has properly managed the event risk?Naturally having an advance team visit each visit and go over a risk management plan is ideal. Since most bands aren't at the level to afford this, insurance is generally the only protection. I strongly advise that each band's tour manager collects BEFORE SHOWTIME a valid certificate of insurance naming the artist's touring company as additional insured AND an executed show contract. When I was a manager I never signed contracts unless payment was withheld. The importance of this simply wasn't emphasized to me. Now with artists like Sugarland getting dragged into the Indiana lawsuit it truly shows the importance of a signed agreement.
5. Lots of times people assume coverage is in place when it actually isn't. What sorts of best practices should be in place to ensure that coverage is valid and executed?As I said above, collect valid certificates of insurance prior to performance. My company will birddog these for our clients for no extra charge if this is requested. I suggest you ask your insurance broker to do the same.
6. Tell us a bit about your background and about Doodson.For 15 years I was in the music business in many different capacities. I was the day to day manager for bands like Vertical Horizon and Jackopierce then primary artist manager for bands such as Drowning Pool, Flickerstick and Damageplan. I also did A&R for Capitol Records, was a concert promoter and had a label through Sony/RED. If you know my artists you probably understand why I entered the insurance business. If I can make one blanket statement that applies to everyone is take a few hours to identify and protect your assets. These may be either tangible or intangible. You may protect with contracts, you may protect with insurance. Just make sure you are protected because lightning CAN strike twice...
Doodson Insurance Brokerage is an internationally recognized insurance advisor with a rich heritage that spans over six decades. It has cultivated trusted, long-term relationships with clients operating across many entertainment platforms within the UK and USA – from grass roots to globally acclaimed household names. We have 120 employees in 4 offices in the US and 3 in the UK along with affiliates worldwide - we can provide an excellent around the clock service to clients seven days a week. Many on our staff came from the entertainment business so we understand what you do from actually doing it.
Paul Bassman is the President of Doodson Insurance Brokerage, a division of Doodson Broking Group. He can be reached at
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.
.
Scott Cadawallder is a long time road manager, working with well known artists such as Ben Harper and Jack Johnson. This year he is on the road with the electronic artist Pretty Lights, who is having a breakout year. Scott used Live Access for Jack Johnson and now Pretty Lights. Echoing Richard’s comments, Live Access is not just for big arena acts. “For smaller bands maybe they wouldn’t need it on the tour but when they do a home town show, they have so many request for tickets, you’re just unable to comp them - you use Live Access” said Cadawallder.