Risk management
Clive Shelver, managing director at Film & Entertainment Underwriters - a specialist insurance underwriter, writing on behalf of Compass Insurance - says it is imperative for members of the entertainment industry to have a proper risk management strategy in place when organising large-scale events.
"Whether it's due to adverse weather, for example, or the non-appearance of performing artist(s), the western world has seen a number of concert tragedies and abandonments. Only a few months ago, a fan was killed and several injured before the start of the Linkin Park concert at Cape Town's Green Point Stadium when scaffolding collapsed due to heavy winds."
Shelver says organisers can insure against the cancellation of an event due to the non-appearance of cast members - something to bear in mind, perhaps, for when Rihanna comes to town, on the South African leg of her Diamonds World Tour later this year. "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."
According to Shelver, 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 extremely severe weather conditions and non-appearance of cast members due to illness.
"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."
Shelver 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 points out that there are a number of additional insurance covers that one can take out including personal accident insurance for members of a crew, which covers death, permanent and temporary disablement and medical expenses. "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 it is abandoned 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.
