Published on October 21st, 2017 | by Alan Cross0
Artist are Now Looking Carefully at “Terrorism Insurance”
So many things can go wrong with a concert, a festival or a tour. This necessitates all manner of insurance.
What if the stage collapses? Maybe the lead singer dies of an overdose forcing the cancellation of the tour. Gear could get damaged to stole. One of the trucks carrying the lighting rig drives off a bridge. A fan is hurt in the moshpit and decides to sue the same time another fan claims to have been beaten up by security. And so on and so on and so on.
Now acts and promoters have something else to worry about: terrorism.
Following the events of the Bataclan, Manchester and Las Vegas, insurance companies are getting more inquiries about policies under the heading of “political violence and terrorism” or PVT insurance. Such policies have always been available, but unless you were touring through rough places–South America, Eastern Europe, South Africa–you didn’t really need it.
Now, though, artist reps are saying “Yeah, we’d better look at something like this.” Not only are such concerns a sign of our sad times, but it’s also probably going to mean higher ticket prices. From The Hollywood Reporter:
Standard nonperformance insurance costs about 2 percent of the artist’s guarantee and pays a claim (usually about 80 percent of appearance fees) if shows are canceled for reasons like illness, injury or natural disaster. A PVT add-on costs about an extra half-percent.
A half-percent doesn’t sound like much, but if the number of incidents goes up–hell, if just the number of threats go up–the premiums will reflect the greater risk. In fact, threats can trigger claims. If some whacko says that they’re going to attack a gig and word gets out, people are going to stay away, hurting box office receipts. Someone will want to be compensated.
And remember, too, that we’re not talking about concerts and festivals. The risk extends to sporting events, theatres, anything that attracts a large number of people in a public space.