Michael Jackson Concert Cancellation - Insurance Protection
Promoters of concerts take on great risks. Many performing stars are temperamental, have addictions and are sick often, thus having concerts canceled since the star can not perform. These risks along with other risks as rented stage or venue facing a peril, performer just decides not to perform, security issues where authorities close down the concert or a performer’s death as recently with Jackson makes concert promotion a risky business. Promoting a concert is very expensive, consuming high cost for advertising, stage - venue rentals, and other promotional costs.
Current news releases on the Promoter AEG for the London Jackson concerts, reported that AEG has insurance coverage for the concerts which includes coverage for the performer not being able to perform because of death.
Since performers often engage in risky behavior, the cost for covering a performance can be very expensive. Insurance exists for this industry but it comes with a high cost and typically the coverage does not cover all the losses thus leaving a promoter with loses but much less than if insurance coverage was not purchased. This insurance coverage is typically underwritten by specialty insurance companies. Lloyds of London is a well known under-writer that takes on special coverage for unique perils as concerts for famous stars, aerospace flight systems and many other unique perils.
In current news releases it is reported the AEG, the promoter for the planned London Jackson concerts has coverage from Lloyds of London for losses from canceled concerts caused by Jackson’s death. The coverage amount reported was for 17 million, well below the estimated loss of greater than 25 million dollars.
Insurance for covering the promoting of an event typically goes by the name of Event Planning Insurance. Event planning insurance includes commercial general liability. Commercial general liability coverage protects the insured against covered liability claims for bodily injury and property damage arising out of premises, operations, products and completed operations, and personal and advertising injury.
Inland marine provides coverage for direct loss or damage to your supplies and equipment, furnishings, improvement and betterments, and signs.
Event Cancellation Insurance covers cancellation caused by a peril to the venue leaving it unusable (fire, flood earthquakes). Event Cancellation Insurance also covers perils that prevents the audience from attending the venue. These coverage are similar to business interruption insurance coverage, but cancellation insurance covers a venue instead of your own business premises.
Other coverages as Non-Appearance insurance covers the peril of a performer not being able to appear at the event. This coverage has many exclusions such as: pre-existing illness, any hazardous feat or activity, contractual dispute, and pregnancy. Life insurance is also purchase to cover key persons whose activities are required for the event to continue.
Author: your-insurance-site.info
Source: various press releases on the internet
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