But Cancellation Insurance is expensive for an agent, right? Not if you're smart about it: La Playa's Cancellation Insurance offers a "friends and family" style policy, allowing you to insure just your key artists, choosing which risks and what period to cover.
If, like many agencies, your business relies significantly on income from particular artists and writers, it's worth considering the impact of a short, medium and long-term illness or injury on your revenue.
Without breaking the bank, it's possible to identify your most vulnerable spots and minimise your exposure with some well-designed cancellation insurance.
Cancellation Insurance replaces commission lost as a result of the inability of or loss of opportunity for artists to perform. It can also help with efforts to reduce further losses (eg: chartering a plane to get around a transport strike).
It may not be worth insuring every artist for every cancellation - most artist managers absorb attritional losses of around 5% of commission in a normal year. Only you know where you're most exposed.
You could simply cover your top 5 earners, e.g.:
The premium is a rate percent of the total sum insured. Ranging from 1.00% to 3.5%, factors include artists' ages, cancellation history and level of income. On the example given, the premium would be between £3,290 and £11,515.
Identify your weak spots, quantify the potential impact of cancellation and get specialist advice to make sure you don't pay more than you need to.
Property: computers, audio visual equipment, offices
Consequential Loss: protects income streams during physical and technological disruptions (fire, flood, power & telecommunications failure)
General Liability: cover for compensation payments arising from damage to third party property or personal injury
Workers' Compensation: for injury and illness to employees and freelancers
Errors & Omissions: helping to defend you against allegations of libel, slander, infringement of copyright, breach of confidentiality
Directors' & Officers' Liability: protecting decision-makers against alleged mismanagement of the organization
Travel & Touring: trip cancellation, medical expenses, passport replacement, loss of baggage
Specialist Cancellation Insurance: cover against financial loss as a result of cancellation, abandonment, postponement or re-scheduling of an event. As an artist manager, you can opt to insure your highest earning artists/authors with a “friends and family” type policy – entirely flexible and designed to cover areas where your income is most vulnerable - without breaking the bank. Some problems are worth losing sleep over. We believe insurance isn’t one of them. More >
We understand you so well, we'll complete the form for you if you prefer! Let's talk...Download: Arts & Entertainment Brochure
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The arts present a very specific set of risk exposures – and now your digital and online risks can expose you globally. We understand the risks and pressures you face - and we speak your language. We’ll support you with great advice - helping you make good decisions for your organization.
Our policies can help streamline costs, and we’ll always help you stay ahead of the game in managing risk. The show must always go on - insurance isn’t just about processing a claim, it’s about thinking laterally to solve challenges and problems fast.
At La Playa, we’re passionate about the arts and creative industries – many of us are practitioners and active consumers; in fact, La Playa founded the first ever corporate art collective!