K&K Insurance Presents: Insurance Essentials for Musicians vol. 3 by Performer Magazine

Insurance Essentials For Musicians vol. III

Presented by K&K INSURANCE and PERFORMER MAGAZINE

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TABLE OF CONTENTS this image by Kenzs Photos is licensed under CC BY-SA 2.0

Performer Magazine www.performermag.com Twitter: @performermag Facebook: @performermagazine Instagram: @performermagazine

SECTIONS How to Shop for Entertainer Insurance

Why Do Venues Require Bands to Have Liability Insurance?

How Much Liability Insurance Does My Band Need?

Do You Know The Risks You Run Without Proper Insurance?

K&K Insurance www.kandkinsurance.com Twitter: @KKinsuringfun Facebook: @KKInsurance

cover photo by Treefort Photo Dept is licensed under CC BY 2.0

HOW TO SHOP ENTERTAINER

e know a lot of you might b e headed out on a spring or summer tour soon, and you’ve already gone through the checklist. Van’s in working order? Check. All the gear fits? Check. We’ve got hotels/ accommodations booked? Done and done.

admitted (you may also hear the term surplus lines) they may require you to pay extra taxes or fees. And who wants that?

Forgetting something? If you’re performing live, we know that insurance might not be at the top of your list, but it could be one of the smartest things you check off before you hit the open road. If you want to learn more, just reach for the good old search bar at the top of this page and plug in “insurance” for a number of helpful articles.

Let’s not discount experience, either. Companies familiar with the unique risks that come along with live bands will be able to more accurately judge your risks and provide more tailored quotes, and will be in a better position to better handle the types of claims that may arise in your industry. You may also want to look for convenient services such as the ability to apply and purchase coverage online, as opposed to completing a paper application that must be mailed and approved before coverage is in force.

But let’s say you’ve done all your homework already and have decided liability insurance is a good idea (or even required) for some of the live events you’re playing. What are some of the things to keep in mind when shopping for entertainment insurance? Let’s explore. FINANCIAL STABILITY OF PROVIDER When you’re looking over options for providers, always be sure to ask about the carrier’s financial stability. This is huge – if they’re not financially reliable, what good will they be in the event that a claim needs to be dealt with? There are independent rating companies like A.M. Best that are a safe choice when you’re doing research. Look for carriers with A or better ratings for the best peace of mind. QUICK TIP FOR AVOIDING EXTRA COSTS Along with ratings, make sure the provider you’re looking at is admitted (or licensed). This is definitely preferred because if they’re non-

CUSTOMER RATINGS & LONGEVITY You’ve considered the rating of the carrier and also their admitted status, the next step would be to investigate their company history and also any testimonials (unpaid) or customer ratings that are publicly available. If the company you’re investigating is dodgy with the details, you may want to explore other options.

WHAT KIND AND HOW MUCH This wouldn’t be much of a shopping guide if we didn’t answer these basic questions. So, the first thing you’d be looking at is general liability insurance for live events. This is what we’re dealing with here (see our other articles on instrument-specific insurance) in case someone is injured or property is damaged. Now that you know what to buy, how much is enough? Well, as an example, you might want to go with a policy that has a $2 million occurrence limit with a $5 million aggregate limit. What this means is that your limit for an individual incident is $2 million, but your total limit would be $5 million for all the incidents that take place while the policy is in effect. That might sound like a super-high amount, but bodily injury (or, in the absolute worst case scenarios, even death) are real possibilities and medical expenses can be cripplingly high

(especially if you’re on the hook). Keep in mind, too, that some event organizers and venues might mandate minimum limits for live acts, so before you buy coverage be sure to look over your performance contracts for limits or coverage requirements. If you have a booking agent

photo by Yoppy

and/or tour manager, they should be aware of all insurance requirements for your upcoming dates well in advance of your arrival. EXCLUSIONS We’ve already covered this in-depth (read that article here), but you should know before you buy a policy what sorts of things are excluded from typical liability coverage policies.

We won’t rehash all those points here (again, read the full article for complete details), but it is definitely something to keep in mind when it’s time to shop around. CONCLUSION You’ve heard us repeat it a million times, but to be sure, always check over your policy and ask your provider to answer any questions you may have. They have the answers, trust us.

The best policy (no pun intended) is consult a professional whenever you’re in doubt. Stay safe out there and look for more tips in the months ahead. And in the meantime, check out www. kandkinsurance.com – you may qualify to get a quote or even purchase insurance online.

MUSIC BUSINESS

P FOR R INSURANCE

MUSIC BUSINESS

HOW MUCH LIABIL DOES MY BAND NE

e’ve spoken at length about liability insurance for live bands, especially touring bands and those performing at large outdoor events like festivals, fairs and the like. A while back we discussed, specifically, how much liability insurance a policy would typically cover when it came to the realm of entertainer insurance. A lot of our readers were surprised by the dollar amounts we were throwing around. After all, if I’m just in a local band who performs at reasonable-sized venues, how much damage could I really cause in a given night? Well, that’s the rub. Probably a lot more than you might realize, especially when you factor in that liability insurance for bands and other live performers doesn’t just cover physical property damage or destruction your act might be found liable for. It may also cover bodily injury, harm and, as unthinkable as it may seem, even death resulting from actions, inactions, negligence and other circumstances surrounding a live event or performance. For damage to property and equipment resulting from your actions, you could be talking anywhere from a few hundred dollars to make the affected party whole again, to several thousand dollars, depending on the severity of the event and damage. But when it comes to another human being’s health and safety, expect those numbers to grow exponentially if you’re found at fault for injuries. HOW MUCH LIABILITY INSURANCE ARE WE TALKING, HERE? This is precisely what sparked so many questions in one of our previous articles. In that piece, we said the following: “The policy ‘limit’ is the dollar amount of protection you purchase to cover future claims. For example, you may choose to buy a policy that offers a $2 million occurrence limit with a $5 million aggregate limit. This means

that your limit for an individual incident is $2 million with a total limit of $5 million for all incidents occurring while the policy is in effect.” Is it outside the realm of possibilities to be responsible for $2 for a single incident? Consider someone injured at your concert, and a claim is filed against you for damages – or worse, a lawsuit ensues. That action or actions could not just point the blame in your direction, but also indicate the types of costs associated with bodily harm, including ambulance fees, hospital fees, medications, after-care costs, therapy, and long-term effects even after the inciting event has taken place. It should come as no surprise that health care and prescription costs are unmanageable for many people in this country even in the best of times, so throwing an unexpected hospital visit in the mix, along with all that goes along with it, can add up quickly. Wrongful death suits in this country have been settled for millions of dollars, and pain and suffering figures have been known to reach those amounts, as well. According to Business Insider, hospital stays cost US citizens nearly $385 billion per year, and the average stay can cost well over $10,000 and up. Now, keep in mind, that’s just the hospital stay, and if you are indeed found liable for the injury or injuries in question, it doesn’t necessarily stop there. You could be on the hook for other things you’ve never even considered before, including lost wages due to the injury, and in the above scenario you might only be figuring in one affected party. What if there are multiple injured parties? Now, that’s where the expenses (and headaches) can REALLY add up quickly. All of the sudden, six-figure-and-up policies don’t seem so far-fetched, do they? Now, of course we’re talking about the most extreme cases here, and the hope is you’ll never have to find yourself in one of these situations. But wouldn’t you rest easier knowing your insurance policy had you covered in case the

unthinkable WERE to occur? EVENT OR VENUE REQUIREMENTS The other thing to keep in mind, aside from the peace of mind you’ll have securing a policy with limits that’ll cover most conceivable scenarios, is that some events or venues may flat-out require their acts to carry their own liability insurance. In those instances, even though you may have considered a certain

"Guitar player" by Yuri Samoilov Photo is licensed under CC BY 2.0

amount of coverage sufficient, you could be held to the requirements of the promoter in order to perform. And promoters, at least the good ones, are likely going to be over-cautious when it comes to cover their you-know-whats. So, seeing a large policy limit in a performance contract should no longer come as a shock. It should come as a relief

when you obtain the policy, knowing that if the worst-case scenario were to play out, you would have the necessary coverage (even if it were sort of forced upon you).

have. They have the answers, trust us. The best policy (no pun intended) is consult a professional whenever you’re in doubt. Stay safe out there and look for more tips in the months ahead.

CONCLUSION You’ve heard us repeat it a million times, but to be sure, always check over your policy and ask your provider to answer any questions you may

And in the meantime, check out www. kandkinsurance.com – you may qualify to get a quote or even purchase insurance online.

MUSIC BUSINESS

LITY INSURANCE EED?

WHY DO VENUES REQUIRE BANDS TO HAVE LIABILITY INSURANCE?

e’ve written numerous articles on insurance for musicians, covering everything from basic terms and phrases, to specific details about liability coverage and policy requirements. We’ve also asked our readers to write in with any insurance-related questions they may have, so that we can help provide answers for bands trying to navigate the business end of their affairs. We recently received this question, and it’s a good one that’ll hopefully apply to a lot of working artists out there. “Why would a venue or event require my band to show proof of insurance before

booking us for a gig? Doesn’t the venue carry its own liability insurance? So, wouldn’t we be covered under that? I don’t understand why my band would also need a policy just to perform at their venue or at their event.” Excellent question, and not an uncommon one. Think of insurance like this: it’s meant to be in place in case of the “what-ifs.” What if the venue owner is negligent and the unthinkable happens – say a tragic fire breaks out that would have otherwise been avoidable. Should the victims of that fire be responsible for medical bills, etc.? No, you’d think not. This is why insurance (and also why lawsuits) exist (see: our previous article on the difference between an insurance claim and a lawsuit for more info).

Or “what if” the building they own (or stage they provide) is structurally unsafe and they knew about it, and took no measure to secure the structure. Then another accident occurs. You’d rightly think that any claims and lawsuits would go against the venue in such a case, yes? Well, let’s flip the tables. “What if” your band causes bodily harm to an event attendee. Now, it might have been an accident, or it might have been a malicious act. In any event, it’s not unheard of for the attendee to go after the venue or event organizers for damages. You’ve likely seen headlines to that effect. But you’ve also probably seen headlines where actual artists are named in lawsuits and claims. In these cases, if the band is found to be at fault for

photo by glasgowbury

damages, then can you now see why a venue would want them to carry a liability insurance policy? It should come as no great shock that everyone is out to protect their own interests, and obviously that’s going to include venue owners and show organizers. So yes, while they likely (or at least, SHOULD) be carrying their own insurance, it’s pretty clear why they might also want (read: require) performers to show proof of insurance before bookings, as well. Think of it this way. If there are lots of drivers on the road, how would you determine who should have to have an auto insurance policy if two cars were to collide? Well, doesn’t it stand to reason that ALL drivers should carry their own policies, just in case? You never know when another driver might swerve into your lane, causing an unavoidable collision involving your vehicle. If both drivers are insured, the

process of making both whole again (and depending on your state, placing proper fault), goes much smoother. Same concept for live events – you can’t predict who might be at fault for damages if things were to go wrong at a show, so shouldn’t it follow that all possible parties that could be at potential fault, protect themselves and get coverage? At the end of the day, it shouldn’t surprise you that clubs, venues and festival bookers want to cover their butts. They’ve got enough logistical issues to deal with, and insurance is certainly going to be a top priority (at least to those who have their acts together), especially if they want to secure funding from outside sources. So, the next time you get a request to show proof of insurance, you’ll know why. Trust us, it’s in everyone’s best interest just to play it safe and

make sure you have good coverage in place, rather than end up in a situation where the unthinkable happens and the fingers of blame are pointed at you, without any protection. CONCLUSION You’ve heard us repeat it a million times, but to be sure, always check over your policy and ask your provider to answer any questions you may have. They have the answers, trust us. The best policy (no pun intended) is consult a professional whenever you’re in doubt. Stay safe out there and look for more tips in the months ahead. And in the meantime, check out kandkinsurance.com – you may qualify to get a quote or even purchase insurance online.

Here’s What Yo Without Liabilit

e ’ v e w rit ten numerous articles on insurance for musicians, covering everything from basic terms and phrases, to specific details about liability coverage and policy requirements. We’ve also

asked our readers to write in with any insurancerelated questions they may have, so that we can help provide answers for bands trying to navigate the business end of their affairs. This month we take on another readsubmitted question. This time dealing with just what, specifically, are some of the downsides of facing a lawsuit and “going it alone” without an insurance policy in place. “Let’s say I don’t have any liability

insurance, and I go out and perform and something awful happens. What exactly are the next steps? Do I get sued? Can I just pay the damages? I know insurance is a good idea (and sometimes required), but what really happens if I try my luck and do things on my own?” Well, let’s tackle the real-worst-cases here, just so you have a sense of not only what financial obligations you may be facing, but also the time and headaches involved with being subject

ou Could Face ty Insurance

Do You Know The Risks You Run Without Proper Insurance?

to a lawsuit for damages. See, it’s not just the money, which is what most people focus on. Sure, financial loss and responsibility are at the tops of everyone’s minds, but think about the other things involved when accidents, neglectful actions and purposeful vandalism occur. As always, please consult a legal professional with any questions, this is just meant to get you thinking about some of the consequences to your potential actions. Let’s jump right in. Say you land that festival gig, things get out of hand and you blew off your obligation to carry a liability insurance policy like the promoter requested. Hopefully they’ll be smart enough to stop your performance until your obligations are met, but let’s say they’re as careless as you are and let you go on anyway. Things go bad. Really bad. You wreck the stage (maybe not on purpose, but still), people get hurt (again, perhaps not on purpose, but injuries are injuries). The ultimate worst case. Your actions led you here. Without insurance, remember? Now, even with a proper policy, you wouldn’t be off the hook (see our past articles for what happens in those cases), but now (in our hypothetical, at least) you’re facing a lawsuit. A big one. Damages. Dollar signs. Medical bills. No insurance policy and no insurance company to help guide you or pay damages. Remember, if someone gets injured due to your actions, medical bills don’t just add up, they snowball. And the one thing a lot of people don’t take into account are future lost wages that injured parties may try to recoup if they are unable to earn a living now that your bonehead moves cost them their ability to work. Think about that – what it would be like to be out of

work and not provide for your family. The time lost, the wages lost. Trying to keep a family afloat. These are important things to keep in the back of your mind. Like the saying goes, it’s all fun and games until someone gets hurt. So again, it’s not just the money, it’s people’s lives. And time. Time is a big one here. Do you really know how lawsuits can work? How many steps are involved and how much time and energy they all eat up? Let’s break it down a bit, and you’ll start to get the picture. For starters, let’s assume this is a civil case and not a criminal one (seriously, let’s hope you’ve done nothing criminal). There are a lot of steps involved in filing and carrying out a suit, starting with what might be one of your best bets if things truly are your fault: trying to settle out of court. Now, here’s where that insurance policy would have come in handy. You could have worked with trained professionals to help you navigate all of this. But you chose to roll the dice. So now you’ve got to take the time to research attorneys, and then take the time out of your own career to make tons of meetings. See how a lawsuit can disrupt your life, even at these beginning stages? OK, let’s assume you can’t reach an agreement with the harmed parties and settlement doesn’t happen. Bad news, you’re looking at more headaches. The suit’s now filed, the evidence is gathered and all sorts of pre-trial discussions, motions and the like are in store for you. Sounds fun, huh? This is all assuming damages are fairly extensive, and can’t be resolved in small claims court. Even that’s no walk in the park – real life isn’t exactly like Judge Judy.

Where were we? Oh yeah, summons, motions, answers, and potentially more legal steps ahead. Sometimes you’re still able to settle at this stage, but if not (and this is an abbreviated look at the process), you could be headed to trial. Now, in reality, most trials don’t last months like you may see in super-high profile criminal cases (OJ and the like are usually the exception to the rule), but even a few days out of your life constitute time you’ll never get back, and time the plaintiffs won’t get back, either. So here you are, at trial. The time to settle is out the window, and let’s say you go through the whole process, and they prove their case against you (again, this is a super-abbreviated example, but bear with us), and you’re found guilty. Judgements may be granted, and you’d be right in thinking that the while ordeal is over. But you could still be wrong! What if you were still convinced you were not responsible in this scenario, and you and your attorney agree that you should appeal the verdict? Or let’s say there was a problem or error during the trial that you think affected the outcome - you could be looking at starting the whole process all over again! Look, this article isn’t meant to scare you (we’ll leave that to clowns and spooky little girls crawling out of the TV), but it is meant to get you thinking. Be smart out there, especially on the road. Your safety and the safety of those around you, in attendance, and those working the show should be paramount (along with a good performance, of course). And we’ll reiterate, just so it’s 100% clear. This isn’t meant to be legal advice in any way shape or