Everyone in the entertainment industry knows a lot of hard work happens behind the scenes. When something goes wrong, lawsuits can follow – and there’s a lot that can go wrong. Entertainment liability insurance provides protection for entertainers, producers, music companies, sports companies, and others in the entertainment industry.
Here are 10 reasons your entertainment business needs liability insurance coverage:
- Sometimes the show CAN’T go on. The main performer may be sick and need to cancel last minute. Transportation could be impossible due to a major snowstorm, leaving your crew stuck in the wrong state. Essential equipment may break down. Event cancellations are sometimes necessary, but they can lead to breach-of-contract claims.
- You might accidentally damage the facility. Let’s say you arrive at the venue and everything is going according to plan – until one of your equipment vans accidentally backs into the side of the building while delivering your equipment. Now you’re on the hook for the cost to repair the structure. That’s one way you could inadvertently cause property damage, but there are countless others. If you accidentally cause a fire, the costs could be catastrophic.
- You could also damage rented equipment. Equipment in the entertainment industry tends to be expensive. For example, if you’re renting sound equipment, and someone overturns a glass of water on the audio mixer, it could cost a lot.
- Someone might actually break a leg. The lights are low. People are dancing and having a good time. Then someone trips on a cord and breaks their hip. Or maybe somebody throws something that hits somebody else in the eye. When an accidental injury happens, lawsuits and liability can follow.
- Worse, multiple people could be injured. Whether people are injured in a small fire or a huge crowd crush also makes a difference, since the level of liability can increase with the number of people impacted.
- Violence can ruin good times. Not all injuries are accidental. From an active shooter scenario to fights between members of the crowd, violence can result in liability.
- Food poisoning can lead to hospitalization and litigation. The CDC says 48 million people in the U.S. suffer from food poisoning every year and 128,000 of these cases require hospitalization. If your operations involve food – whether a buffet for workers, catered food at a party, or food sales at an event – food poisoning is a risk.
- Copyright infringement claims can become messy. Many entertainers are very protective of their intellectual property. Allegations of copyright infringement can occur if you use a lyric without permission or if an original piece you develop is perceived to look or sound too much like someone else’s protected property.
- Expectations are high for special events. If you’re playing music at a wedding or involved in some other type of special event, your clients’ expectations will be high. They want everything to go right on their big day – and if things go poorly, they may blame you. Even worse, they may sue you for breach of contract or professional negligence.
- Lawsuits are expensive. We live in a litigious society. Many disputes are handled through lawsuits and, regardless of whether the claim is reasonable, you’ll need to defend your company and court costs can add up fast.
What Liability Coverage Does Your Entertainment Company Need?
Your entertainment company needs liability coverage, but a single liability policy might be insufficient. Different types of liability policies cover different types of claims from third parties. Depending on the type of entertainment company you operate and the risks you face, you might need multiple policy types.
For example, general liability provides coverage for many types of third-party claims involving bodily injury and property damage, but it doesn’t provide coverage for claims involving vehicles or lawsuits alleging professional negligence or breach of contract. For claims involving vehicles, you need commercial auto insurance; for claims involving professional liability, you need errors and omissions coverage. If you rent equipment, you may need equipment rental coverage. You may also need special event liability insurance and venue and tenant user liability.
Tangram offers insurance coverages designed for the unique risks of the entertainment industry. We collaborate with brokers and business to customize insurance packages to protect against the industry’s unique exposures. Learn more.