Festival tragedies highlight need for proper risk strategy
The death of five people at a music festival in Belgium last month has highlighted the importance for those operating in the entertainment industry to have a proper risk management strategy in place when organising large scale events.
Five people were killed and more than 70 injured at the Pukkelpop festival in Hasselt, eastern Belgium, in August, when a stage collapsed during a heavy storm. This followed a similar occurrence at the Indiana State Fair in the US, which also killed five and injured dozens after winds of up to 112kmph hit the site.
According to Clive Shelver, Managing Director at Film & Entertainment Underwriters, a specialist insurance underwriter, insurance can be bought to cover the cancellation of an event due to adverse weather conditions. “A specialist insurance policy provides the reassurance to event organiser’s that they can postpone or cancel an event, and recoup the costs, if there is a legitimate reason to do so.
He says that there are insurance policies that will cover an event organiser if they are forced to interrupt, cancel or postpone a show due to circumstances beyond their control, such as amongst other things, extremely severe weather conditions.
“This can be essential as film, television or live stage productions can be hugely expensive to stage and if the costs are not recouped then it may be impossible to put on the same show for a second time and the organiser is then left to pick up the bill.
Shelver cautions, however, that while the staging of an event can be insured, the costs will not be covered if the abandonment of it is due to the organiser’s failure to meet normal deadlines such as delivery dates, release dates, air dates or any other deadline that did not allow a reasonable margin for safety. “As with any insurance policy, there are always stipulations in the terms and conditions and it is critical to speak to a qualified broker who specialises in this particular kind of insurance and can also explain the client’s responsibility.”
He says, however, that it is also vital for any event organiser to have some form of liability cover in place should an accident happen during the shooting or staging of a show. “It is almost impossible to host an event nowadays without producing evidence of liability insurance. If someone gets killed or permanently disabled during a show then the liability rests with the organiser; this could easily run into millions.”
Shelver says there are a number of additional insurance covers that one can take out including personal accident insurance for members of a crew, which incorporates death, permanent and temporary disablement and medical expenses benefits. “This kind of cover varies considerably depending on the particular job that one is doing. For example, insurance cover for a gaffer would be significantly less than insurance for a stunt man.”
“Film and entertainment insurance is a specialised form of insurance cover and it is critical for production companies to ensure that they engage the services of a qualified and specialised broker to ensure that they have a proper risk management strategy in place,” concludes Shelver.
