Red hot acts need red hot insurance
The Red Hot Chili Peppers are just the latest big name act to be announced to be vising South Africa – following in the footsteps of U2 and Lady Gaga. But huge acts bring their own particular potential hazards, in particular the need for stringent insuran
This is according to Clive Shelver, Managing Director at Film & Entertainment Underwriters - a specialist insurance underwriter, writing on behalf of Compass Insurance - who says it’s imperative for those who operate in the entertainment industry to have a proper risk management strategy in place when organising large scale events.
“Whether it’s due to weather, for example, or human error, the western world has seen a number of tragedies at pop festivals. In 1969, during a free concert in northern California featuring the Rolling Stones, a man was brutally killed by a member of the Hell’s Angels, whom the Stones had hired as their security. Three more deaths ascribed to accidental causes were also reported that day, and over 850 people were injured.”
More recently in Belgium, in August last year, five people were killed and more than 70 injured at the Pukkelpop festival in Hasselt, eastern Belgium, when a stage collapsed during a heavy storm.
Shelver says one of the insurance considerations that can be bought by the organisers is cover against the cancellation of an event due to adverse weather conditions. “This is critical for organisers of large scale events that involve international stars as these can be costly to stage and it may not be possible to postpone it to a later date. A specialist insurance policy provides the reassurance to event organisers that they can postpone or cancel an event, and recoup the costs, if there is a legitimate reason to do so.”
He says 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 among 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.”
He says 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.”
He 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.”
“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.
