Taylor Swift insurance – what types of cover do the big tours need?
Taylor Swift insurance – what types of cover do the big tours need? | Insurance Business America
Insurance News
Taylor Swift insurance – what types of cover do the big tours need?
A peek behind the curtain of an industry worth billions
Insurance News
By
Nicole Panteloucos
Managing insurance for large-scale concert tours and festivals involves navigating a complex web of risks and coverage types.
With Taylor Swift’s Eras Tour projected to generate nearly $6 billion by the end of this year, it stands to become one of the most lucrative tour runs in American history. Filling stadiums to capacity and infusing local economies with a flow of cash wherever she performs, the tour’s impact has been headline-grabbing – but whether it’s the Eras Tour or iconic music festivals like Lollapalooza or Coachella, which averages 125,000 daily attendees, the stakes are high, and the insurance considerations are extensive.
Equipment coverage for world tours
For brokers dealing with clients embarking on large tours, putting in place comprehensive insurance coverage for equipment is an obvious starting point.
Alan Hollingsworth (pictured above), chief sales officer at HUB International, highlighted that the risk of damage to music equipment, staging, and lighting devices increases with the number of stops on a tour.
Pointing out the logistical intricacies of multi-stop tours, he emphasized: “If a show is happening in one city, it’s likely that preparations for the next stage are already underway in the next city. Equipment insurance plays a crucial role, so large tours will carry big limits on that end.”
According to Hollingsworth, for tours that are of grand scale like the Eras Tour, it is typical for equipment costs to reach millions of dollars.
While coverage limits for equipment vary widely based on factors like tour size, locations, equipment value, and specific coverages needed, for brokers advising high-profile clients on world tours, securing high coverage thresholds is essential to ensure holistic protection.
What types of liability coverage are needed?
Liability insurance is a crucial factor to shield event promoters, or artists. from potential claims arising from attendee injuries or fatalities. The importance of such coverage was underscored by recent events at Swift’s Eras Tour where a fan died from heat exhaustion in Brazil.
The incident sparked outcry on social media, with fans urging Time4Fun, the event organizer behind Swift’s concerts in the country to improve venue conditions, particularly access to water. The company later responded by announcing changes to their protocols for events under extreme heat, pledging to enhance venue infrastructure with more shaded areas to mitigate heat-related risks.
Aside from equipment coverage, brokers should ensure the following types of liability coverage are available to clients:
General liability insurance: Covers third-party bodily injury and property damage. This is essential for accidents involving attendees or venue property.
Event cancelation insurance: Protects against financial losses due to unforeseen cancelations or postponements.
Workers’ compensation insurance: Includes medical expenses and lost wages for employees involved in the tour who are injured on the job.
Professional liability insurance: Includes claims of negligence or failure to perform professional duties.
Risk mitigation while on the road
For brokers, the key overall is to understand the overlapping risks and complexities of grand scale concerts and tailoring coverage to the unique needs of each event. This approach should be accompanied by advising clients on risk mitigation efforts that can help reduce the likelihood of a claim ever being necessary.
These strategies include:
Detailed planning: Ensure thorough planning of logistics, including transportation and accommodation.
Contractual agreements: Use well-drafted contracts with vendors and venues to specify responsibilities and liabilities.
Equipment management: Maintain and regularly inspect equipment to prevent failures.
Contingency plans: Have backup plans for potential issues like illness or equipment breakdowns.
Training and rehearsals: Conduct regular training and rehearsals to minimize performance risks.
Experienced tour managers: Hire experienced tour managers to oversee operations and manage unforeseen challenges effectively.
“Particularly, with the Eras Tour, it’s an unbelievable experience. There’s so much joy in witnessing what’s happening on stage. You don’t want to be the person that’s bringing potential negativity to that experience, but at the same time, it’s important to get ahead of potential risks,” Hollingsworth concluded.
The comments offered are general industry insights. Please note that Hub International is not the official broker for the Eras Tour.
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