The risks of staging entertainment events and films

As South Africans wait impatiently for spring weather, music fans are also waiting for Rihanna’s Diamonds World Tour in October, underscoring once again that South Africa is becoming increasingly popular as a destination for international stars. But - “Wi

Shelver notes that as South Africa enjoys increasing interest from international artists, so each entertainment act brings its own set of parameters.

“From a risk management perspective, when we consider visits from comedians like Eddie Izzard, John Cleese and Russell Brand compared to music icons ranging from Rihanna to R Kelly, hosting the comic acts is arguably a potentially simpler affair than hosting big name music acts, who fill stadiums as opposed to theatres. And Rihanna has unfortunately gained a certain notoriety this past year for cancelling her concerts at the last minute. Nonetheless, the dynamics of risk management for any act, no matter the size of the venue or the audience, all present their own issues and specific considerations.”

Shelver says that the entertainment section of the insurance industry has grown considerably over the last ten years, mirroring the influx of international talent to this country. “However, it remains a niche market. Currently we have a limited amount of brokers who specialise in film and entertainment insurance, although with time and increasing international interest, this number will likely grow.”

Shelver says that when looking at risks in the entertainment industry, the following main areas should be pinpointed when staging an event:

• Cancellation and abandonment.

• Damage to the venue.

• Non-appearance of cast: “This is less of an issue today because of the tightly bound legal contracts to which performers are subjected,” says Shelver.

• Weather related risks. Shelver clarifies, “An event organiser needs to have the proposal in at least two weeks before the event, in order for the risk to be considered. One tries to analyse the chances of adverse weather on that particular day.”

• Events liability: “An Act of Parliament recently enacted in South Africa means that organisers need this insurance in order to stage an event by showing that they are covered for safety elements.”

Shelver explains further that insurance cover considerations for a film shoot are also of the utmost importance. “This sector of the industry is also growing in South Africa. International companies frequently use South African film crews, and the quality locations offered by the greater Cape Town area, for example, are further facilitated by the high standards in our local film crews, as well as the benefit of the exchange rate.”

He clarifies that insurance cover extensions for a film shoot would include:

• Nominated Key Crew/Cast: “If a nominated person is injured immediately before or during a shoot, this will cover the production company for any expenses incurred necessary to complete the shoot as a result of cancellation ,postponement or interruption of the production.”

• All Risks Negative/Tape/Card: “This provides cover against direct physical loss due to damage or destruction of film, tape stock or digital cards.”

• Faulty Stock, Camera and Processing: “This would protect the production company for a loss caused by any form of fogging, light exposure, use of faulty cameras, stock, faulty development, editing and processing or accidental erasure of recordings.”

• Props, Sets and Wardrobe

• Third Party Property Damage:

• Cover for miscellaneous hired-in equipment. “Some cameras can cost over R500 000.00.”

• Personal accident for crew and cast: “In light of the many freelancers in the industry, death, permanent total disablement, temporary total disablement and medical expenses are covered for the duration of the shoot,” clarifies Shelver.

• Public Liability cover for the production company whilst on location.

• Comprehensive motor insurance: “For vehicles that are hired in and for vehicles used as action cars in the shoot, as may be required.”

Shelver concludes, “Working in the film and entertainment industry insurance sector is a satisfying and interesting take on traditional insurance, as you can never tell what might happen on a movie set or at an entertainment event. And so, for this reason, you never can tell when you might need that apparently obscure piece of film or entertainment insurance to cover you for the most – apparently - unlikely scenario.”