So the worst has happened and your arts organization needs to make an insurance claim. The incident’s covered under your policy, but your insurers are saying they’re not going to pay out the full amount of your loss – even after the policy excess has been deducted. How can this be?


The answer lies in your policy conditions – in particular the ‘Co-insurance’ clause. If this clause is applied by insurers in the event of a claim, it means that where the sum insured is inadequate (i.e you’re under-insured), the insurer can reduce its liability for a claim by applying a proportionate approach. The sum to be paid out is usually calculated as follows:

Sum insured
(True value at risk) x (loss) =  claim sum to be paid

So for example:

Your property is worth $1,000,000.
You insure it for $800,000.
You suffer a loss of $500,000.
If your policy is ‘subject to average’, the maximum amount you recover will be $400,000.

So how can you prevent this happening to you?

Finally, why do insurers make their policies subject to this clause? The answer is simple: they need to make sure they receive the right level of premium for the risk they’re being asked to undertake.

Don’t let this kind of problem jeopardise your claim – let us help you do a great job and make good insurance decisions for your arts organization!

For more information email Elaine Lamb.


Advice you can trust from an expert who understands you:

This is the tenth year that Trustwave has been publishing their security report, which is based on a careful analysis of their own internal research, data-breach investigations, and reports on international cybersecurity events. In the years since the company’s first report there has been a notable shift: where cybercriminals once cast as wide a net as possible, indiscriminately pursuing weaknesses wherever they could find it, they are now identifying high-value opportunities, carefully assessing vulnerabilities and taking advantage of them.

The 2018 report  details the persistent insidious activities of individuals, criminal syndicates, and rogue nations as well.  If your role is managing risk in your organisation, you should know:

North American businesses are the top targets – though cybercrime is an international problem, 43% of all data breaches reportedly took place in North America, with the Asia Pacific region following at 30%. A combination of Europe, Africa and the Middle East represented 23% of attacks and Latin America represented 4%.

Retailers are at risk – when identifying the types of businesses that are most frequently targeted, retail leads with 16.7%, while finance and insurance industries are not far behind at 13.1% and hospitality representing 11.9%. Of note was a sharp increase in the number of service providers that were targeted this year. Just two years ago, so few of these types of entities reported breaches that they did not register on Trustwave’s report, where for 2018 they represented 9.5% of comprises. Because these companies can be linked to numerous other targets, these threats are particularly of particular concern.

Organization and preplanning by cybercriminals has increased  – careful analysis has revealed that cybercriminals are spending extensive amounts of time searching for vulnerabilities and developing tools with which to exploit them. Some attacks have involved cross-site scripting, SQL Injection, Path Traversal, Local File Inclusion, and Distributed Denial of Service, while others have allowed eavesdropping and command of sensitive information in web applications.

The human element remains the weak link – the most prevalent method of compromising an organization remains human trust. There have been a growing number of executives who have been tricked into authorizing fraudulent financial transactions.

Despite the best efforts of organizations to protect themselves, the number of cyberattacks is expected to continue to increase. Trustwave’s chief marketing officer Steve Kelley said, “As long as cybercrime remains profitable, we will continue to see threat actors quickly evolving and adapting methods to penetrate networks and steal data.”

To protect your organization against the very real impact of cyber crime, it’s essential that you do a thorough risk analysis. Think: what could a data breach cost our business?

– in lost income?

– reputational damage?

– in loss of trust?

– in forensic/investigation costs?

– in notifying customers?

– in legal costs?

– in fines?

As well as risk management in systems and processes, you need to protect yourself against the financial impact – with a robust Cyber Insurance program, tailored to your organization actual risk exposures and areas of work.  To discuss your cyber liability insurance needs, get in touch with us today. Get a free quote here, or call us on 646-665-7737.

In the days before the Internet, newspapers and magazines automatically contacted and paid photographers or their agencies for the use of their images: without doing so, they would not have access to their photographs. But with the advent of digital media and the World Wide Web, photographs have become so easy to copy that media companies often do so without thinking about the source – and this has led to frequent and expensive copyright infringement litigation.

Copyright infringement is defined as the unauthorized reproduction, display, and/or distribution of a copyrighted work. When a photographer sees an image that they have taken appearing on a site or displayed by a user that has not paid for the right to do so, they have generally called and either asked for it to be removed or for a minimal fee. But now copyright attorneys have become more sophisticated in their pursuit of copyright infringement on behalf of photographers, and this has led to hundreds of lawsuits being filed – and millions of dollars in settlement fees.

Software now also exists that can find and identify lookalike images which may constitute infringement.  This makes it easy to track down unauthorised material on a global basis.

The ability of an experienced copyright attorney to collect tens of thousands of dollars for use of a photograph stems from the existence of the Copyright Act of 1976, which potentially awards federal plaintiffs as much as $150,000 if they are able to prove willful infringement. Photographers are able to register their work with the copyright office at any time up to three months after the work is initially published, and that means that even if a work had not been copyrighted before the infringement occurred, the photographer still has time to do so in most cases, especially in those involving current events. With such a high potential fine existing for unauthorized use of a photograph, it is easy for a copyright attorney to demand a payment that far exceeds the actual value of the photograph to the photographer in order to settle.

This tactic has been successfully pursued by a single copyright attorney, Richard Liebowitz against such notable media companies as Time, Condé Nast, and Rolling Stone. Even the major networks have ended up paying large sums to photographers in response to claims of unauthorized use and infringement. Though the photographs themselves would have commanded only small sums had the media companies taken the time to license them, their failure to do so leads to extremely high costs. According to freelance photographer Yunghi Kim, “Photographers are basically small businesses. They’re little men. But you have this powerful tool, which is copyright law.”

If your media organization relies on photography to support your content, there is always the risk that an inexperienced or rushed employee might inadvertently publish an unlicensed photo or copyrighted work – or that you can be accused of doing so. To protect yourself against the rapidly rising costs of copyright infringement litigation, you need the right type of insurance. Contact La Playa Insurance today to speak to a representative who understands your needs and risk exposures.

Cyber attacks are now a “when”, not an “if”, and Cyber security is a pressing management issue. With costs spiralling, Cyber Insurance is a no-brainer – but it’s not enough on its own.

TOP TIP:  as well as Cyber Risks Insurance you need separate coverage for Crime to give financial protection for theft of money and fraud, including phishing scams, electronic wire transfer fraud, telephone hacking and social engineering.

If you don’t already have Cyber Risks and Crime Insurance, talk to us as a matter of urgency – my advice is always free and without obligation.


The majority of small businesses have had their digital defences breached in the past year. It’s vital to protect your intellectual property, business information and customer data against online theft and exploitation. Read on for a basic checklist on preparing for a cyber attack:

  1. Risk assessment on security and the “what ifs” for your business
  2. Security controls: maintain, regularly update and stress-test them
  3. Incident response plan: create and share it, and make sure you have the right professional help at the ready
  4. External back up systems in place
  5. Educate and train all staff to reduce human error
  6. Cyber Risks AND Crime Insurance:

To talk through your data risks, and review your Cyber Insurance, just email me – Charlene Gill or call on 646 665 7737.

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The Taiwanese company responsible for making the chips that power the Apple iPhone, as well as other popular devices, was the victim of the debilitating WannaCry computer virus. The attack so significantly impacted the operation of Taiwan Semiconductor Manufacturing Co.’s (TSMC) factories that is expected to delay global shipment and reduce the company’s revenues. The company says that the attack happened at the worst possible time, just as its operations were ramping up in response to the release of Apple’s next model iPhone.

The company revealed that the WannaCry virus outbreak occurred on a Friday, and though they were able to restore 80 percent of the fabrication tools by the following Sunday morning and expected full recovery by the beginning of the following week. Still, despite the quick turnaround they announced that shipments would be delayed and that they calculated the attack would lead to a three percent decline in third quarter revenue and one percentage drop in operating margins.

Though the company’s quick recovery means their predicted profit margin is not expected to change for the year as a whole, the attack serves as a stark reminder of how vulnerable the world’s supply chain is to attacks by cybercriminals, and how an attack on one company can not only affect its operations, but the operations of all those that depend upon them for the supplies that they produce. TSMC reports that there was no confidential information compromised by the attack and that it has taken steps to strengthen its internal security measures as a result of the attack, which they blame on a “misoperation” when a new tool’s software installation process was initiated: operators failed to scan the tool’s software for malware before it was installed. Once the virus had infected the new tool and it was connected to the company’s computer network, it quickly spread to every other tool in the factory.

This type of cybercrime is becoming more and more prevalent, and is expected to cost global business up to $8 trillion in damage over the next five years. TSMC’s Chief Financial Officer, Lora Ho, said, “TSMC has been attacked by viruses before, but this is the first time a virus attack has affected our production lines.”

The attack is directly linked to the 2017 WannaCry cyberattacks, which brought many companies to a standstill as they searched for a fix for the ransomware attack. Though TSMC may not be a household name, it is the world’s largest chipmaker, and its role in production for Apple and other companies makes it clear that in the digital age, bad actors can have an enormous impact with a small action.

The ever-present risk of cybercrime means that businesses must be proactive in their approach to protecting themselves. Cyber risk insurance coverage can protect against the costs, expenses and liabilities of restoring or recreating data, the costs you can incur when an outsourcer is attacked, business interruption, and more. Call us to talk about how we can protect your business today.

Remember the old song that starts out, “I believe the children are the future?” Nothing could be more true than when it comes to the future of media. Media producers are increasingly targeting today’s children: some do so for the joy of creating innovative material for a youthful market, while others do so with full knowledge that they represent an enormous consumer market, both now and in the future.

No matter what your reason for choosing to work in children’s media or whether your genre is television, film, radio, interactive media, games, publishing, merchandising, licensing or live performance, you must take steps to ensure that your business is protected against the normal risk factors and unique concerns involved with working in this specific field, and in your particular area of involvement.

When assessing your level of risk, these are the top ten reasons why you need specialist insurance.

Intellectual Property Infringement – Insurance addresses errors of omission in seeking permission, as well as those instances where claims against your company for infringement are baseless. It provides financial protection for lost claims as well as to cover legal fees.

Libel and Slander – Whenever content is being created there are concerns that characters or statements can be construed as defamatory or libellous.  This is particularly true across international lines, so insurance needs to be specific to where content will be distributed.

Distributor Liabilities – There are privacy and copyright issues that can sometimes arise as products are distributed, and the risk in these cases tends to rest with the media’s creator and producer rather than with the distributor. Film errors and omissions insurance protects against some of these liabilities, while professional indemnity insurance covers many other types of breaches or negligent acts.

Cyber Risk – Hacking, malware and ransomware can incur tremendous losses, both in revenue and in terms of material losses or business interruption. Cyber insurance policies protect against these losses.

Terrorism – Terrorism is always a risk that is lurking in the background, whether during production, distribution, or performance. Impact can take the form of business or access being shut down, as well as damage or injury In all cases a commercial producers indemnity policy would provide coverage for your cast and crew.

Working with Children and Animals – Children are uniquely vulnerable to abuse and molestation, and as such it is essential that you insure against these risk factors through an abuse and molestation insurance policy or a vulnerable persons policy. Having animals involved in your production may require additional clearances or protections.

Professional Errors and Disputes – Insuring against claims of breach of contract, negligence, breach of confidence or breach of duty of care requires coverage under a commercial producers professional indemnity policy, as well as additional riders.

Product Liability – Producers of media are frequently at risk of being accused of causing emotional distress through their content or inappropriate classification of their material. Having both public and product liability insurance protects against these risks, as does a health and safety policy.

Social Media – Social media has added an additional layer of risk to all businesses, as companies are at risk from posts that can be malicious or libelous, and there are also risks from hacking, catfishing, and copyright infringement. Commercial producers professional indemnity insurance covers this type of media liability.

Director and Executive Liability – When decisions are made at the executive or board level that work against the interests of your organizations, your directors and officers can be held personally responsible. Protection is provided through Directors and Officers Liability Insurance coverage.

To ensure that you have insurance coverage that is tailored to your unique needs in children’s media, contact La Playa to speak with one of our specialists.

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