Does the thought of event cancellation or the non-appearance of a key performer bring out a cold sweat? With the increasingly unpredictable weather, terrorist threats and travel disruption, arts and entertainment companies are shoring themselves up with Cancellation Insurance and Cast and Crew Insurance (see also Cancellation Insurance for Artist Managers).
What is Cancellation Insurance?
Cancellation cover replaces lost revenue and reimburses expenditure incurred from an event which is necessarily and unavoidably postponed, abandoned, cancelled, curtailed or relocated in circumstances beyond your control.
With Non-Appearance and Cancellation Insurance you can protect income that depends on the event going ahead, or just cover specific costs such as venue hire, artist accommodation, travel and marketing. Even if it's a free event with no ticket revenue at stake, Cancellation Insurance can cover incurred expenditure.
What can be covered with Cancellation Insurance?
You can also extend your Event Cancellation Insurance cover to include:
Pre-existing medical conditions, lack of interest/ticket sales, and financial insolvency of the parties are standard exclusions - and pencilled dates without contracts or letters of agreement cannot be claimed.
Question: Do you know your legal obligations regarding ticket refunds? Do you have an explicit policy in place - and is it appropriate?
Find out more about Cancellation cover and what to consider with our guide on How to...Avoid the Top 6 Cancellation Blunders.
How much does it cost?
Cancellation Insurance is highly flexible, and can be customised to your needs. You can choose both the sum insured and period of the policy, which could be 12 months, or just specific dates. You might opt to include only your soloists.
The premium is a rate percent of the total sum insured. This can range from 1.00% to 3.5% - depending on factors like artists' ages, cancellation loss history, level of income generation, and whether the event is indoors/outdoors.
An outdoor opera company cancelled two performances due to floods as neither audience nor orchestra could access the site since all approach roads were under water.
An opera singer fell ill with laryngitis days before a European festival appearance. A last minute replacement was found, contracted and travelled in time to make rehearsals and the performance.
A leading orchestra arrived at London Heathrow prior to an international tour to find the airport closed due to a strike. Cancellation of the tour would have cost GBP 35,000 and so insurers paid for the orchestra to be transported to London Gatwick, where a private plane was chartered to fly them to the first country of the tour.
A US string quartet was due to play at London's Wigmore Hall three days after 9/11 and with all flights out of New York grounded they were unable to travel, forcing cancellation of the concert.
Quote within 24 hrs
“I found the service very welcoming and helpful. Feeling very uncertain about our needs and requirements meant I was a little nervous about the whole process, but [La Playa] was very patient and explained everything simply and slowly.”
“Service was good and you found the best value for money cancellation quote.”
Working with La Playa engenders a feeling of complete confidence. The sheer of joy of their professional service made the decision to move our contract very simple. Not to mention that we saved over £3000 in the process!”
“Having dealt with several insurers, I am pleasantly amazed by the speed and efficiency of La Playa`s work!”
“These guys are the only insurance people I will tolerate speaking to these days, as they are actual humans (with both a brain and a heart!) and offer very good packages too - they answer calls and emails promptly and when I had an issue recently with my bank were very helpful to get it fixed.”
“Your colleagues were amazing in helping me after hours. They were professional and very quick in dealing with me.”
“Delightful organisation to deal with.”
“Glad we've gone with you - service has been really prompt and professional.”
“You are fabulous :)”
“Thank you for providing such a rapid response. I shall certainly suggest your services when next I know of someone needing performing arts' insurance.”
“La Playa has an excellent understanding of the orchestral business and operates as a business partner, not just an insurance service. I wouldn't hesitate to recommend them, a great team.”
“One-stop shop for all insurance... very helpful when we had to make a claim”
“I can highly recommend La Playa insurance - they're great brokers, working almost exclusively with the arts sector and nothing ever seems to faze them, no matter how complex the request! ...They will find you the best deal.”
“I just love it that you are all in the loop of what we are doing.”
“Thank you so very much for this [and] for providing such a professional service”
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 organisation.
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!
As a Lloyd's broker, La Playa has solutions for even the most complex risks, and our services also include Business Protection and Employee Benefits. But what does "Boutique Service" actually look like?
Careful listening to really understand your needs and priorities
As much help as you need with completing forms to provide risk information
A discreet and complimentary appraisal* to assess the risks and ensure you have the right coverage where you need it
An independent market review - so you don’t have to shop around comparing policies, cover limits, risks covered and smallprint exclusions
Careful monitoring of the carriers’ financial strength, claims and customer service
An independent recommendation of the best policy for you - and why
Specialist policy wordings from underwriters who have demonstrated excellence and deep understanding of your risk exposures. We have analyzed a wide range of policy wordings and have selected only the best for our panel. Our advisers have a deep working knowledge of these policies
*subject to insurer availability
An intelligently designed portfolio of protection across multiple asset classes, liabilities and territories
Advice on how best to manage your risks - to keep you safe but also to keep insurance costs down
A dedicated adviser so you can speak to the same person each time.
Expert guidance on valuations, security and risk management, and connecting you with specialist advisers and suppliers
Direct phone and email access to your adviser for questions and advice.
Policy documents emailed to you - no logins and passwords to remember
An advocate beside you if you make a claim - thinking laterally to mitigate the impact, making useful connections to get you back up and running, and driving through a swift financial settlement