On Insurance Coverage. . .
General Liability Coverage
This is required by the venue. A building, ranch, race track, county fair grounds- all want to be covered from liability due to physical damage, fire, riots, accidents or whatever else may place them in a position of liability due to actions stemming from you, your workers or your patrons. You are responsible as the promoter to insure the venue.
A nightclub may require General Liability Coverage of $½ to $1 million, an arena usually about $2-5 million and a racetrack or very large facility (especially wide-open events located on large tracts of land) may require $5- $10 million of coverage, inquire.
You have to look at this from the venue’s position. They need to protect their interests; their property, reputation and good faith they have built over the years can be wiped out if someone is raped, run over, shot, stabbed or burned to death at your event.
Insurance for a small event is usually about $800 to $1,500. A medium size event will cost you about $2,000 to $3,000 to insure and a large event can range from $3,500 to $20,000 depending on the amount of bonds, the amount of general liability coverage and the inherent risk in the type of event or music format and it’s history. The promoter does not matter that much.
The concert insurance coverage business has changed dramatically recently. With nightclub fires globally, stampedes, the Woodstock 99 aftermath and the advent of punk rock mosh pits and hip-hop show stabbings and shootings, most concert insurers of 10 years ago are no more or they simply refuse to write this kind of business. Insurance coverage for your event is just plain harder to get. Instead of being put on the back burner, insurance coverage should one of your primary concerns early on. The great thing about getting a quote is that it usually just tales a phone call once you know where when and with who you will be presenting.
Usually, your subcontractors will carry their own insurance. For a security company to become licensed they need to offer a certain amount of General Liability Insurance.
Require your subcontractors to provide you with a copy of their insurance coverage for your files, make sure the dates are current.
Nowadays, the agency quoting the insurance coverage will want to:
- Know the security requirements and seat capacity
- Research a bio of the band
- Know about the Liquor liability
- Know if you intend to have a mosh pit
- Your intent to have metal detectors (are you going to pat people down)
Review the insurance requirements of the venue contract. When do they need to have the insurance certificate? Sometimes, its required right after booking the building. Do not wait until the week of the show. Have your coverage certificate in hand early.