DEAR EXPERT
Rockin’ Without the Risks
Concerts and other live events are coming back. Do you know all the liability issues? Insurance executive MAXIME LEFEBVRE provides some advice.
Dear Expert, My radio station is producing some concerts featuring well-loved artists over the next year. It’s been a while since we did this. What are the property and liability risks? — Making Music in Memphis Dear Memphis, You are not alone in expressing concerns. After almost two years with the lights off and the curtains down, many entertainment events – indoors and outdoors – are reopening nationwide. Like anything that hasn’t been used on a regular basis, “rust” can develop, increasing the potential for risk. An organization hosting or sponsoring an event where thousands of people congregate is subject to risks including property, general liability and workers compensation. In all cases, it is best to discuss these and other potential exposures in advance with your loss control and risk engineering teams as well as your insurance broker or agent to minimize risks. But what follows are some of my topline recommendations. PROPERTY HAZARDS Bear in mind that no two venues are completely alike. Each is different in terms of topography and utilities. The weather is sometimes unpredictable, with events and locations subject to extreme temperatures or unexpected storms. If the stage is not prepared to limit the impact of weather, a sudden deluge or extreme heat and humidity can damage expensive instruments and equipment. Replacement costs can be significant. If the event is taking place indoors in a facility that has been largely vacant or unused for numerous months, an insurance agent or broker may recommend that the Do you have a professional puzzle that MFM and BCCA experts might be able to answer? We’ll mine the contact base and find the right person to answer your question. Just contact TFM editor Janet Stilson at TFMeditor@mediafinance.org.
them. Outdoors, neither may be the case. Precautions and safety measures include securing wires to the floor and brightly marking them to avoid a tripping accident. Similarly, ingress and egress should be marked and illuminated during evening premises be surveyed by a loss control team performances. to ensure the location is in good condition. Event organizers are responsible for The staging/set decor, lighting and ensuring the safety of not only performers sound system at each venue must be hastily and outside contractors but audiences as assembled and taken down pre- and postwell. Hazards include trip-and fall-accievent. Aside from the physical injury risks, dents as well as injuries caused by special there is the possibility that an improperly effects. secured piece of equipment may fall and be Crowd control is critical. During a weather-related disruption or Potential hazards affecting audience power outage, audience members are at risk of panicking and safety must be identified, along causing conditions in which with the efficacy of existing safety people can be injured. Potential precautions and emergency plans. hazards affecting audience safety must be identified, along with the damaged – or result in harm to the venue efficacy of existing safety precautions and or people involved. emergency plans. Another property hazard is fire. Concerts Chubb has published a detailed checklist consume an enormous amount of power can help identify hazards. It’s available at due to the electrical equipment involved. https://news.na.chubb.com. In the “Topics” Since each venue has different electrical section, click on “Risk Management.” You consumption considerations, make sure can adjust it to meet your use and needs. you don’t overload the system. With many Follow the checklist regularly during your venues closed for an extended period, loss event or production. control and risk engineering personnel By bearing in mind these precautions, should discuss the need for a comprehenyou’re likely to produce an enjoyable – and sive review of the electrical system with an hopefully profitable – entertainment expeinsurance agent or broker. rience for everyone involved. PEOPLE CONSIDERATIONS In many cases, show technicians may not have worked in a while. A previously welloiled machine may now be out of practice, increasing the risk of accidents and injuries. Performers are subject to similar risks. For example, an orchestra that used to perform in the same indoor venue on a regular basis may now be performing in a different environment. Indoors, the lighting and sound equipment is fixed above the stage. Entrance and exit areas are known to
6 The Financial Manager • November/December 2021
This document is advisory in nature and is intended to be a resource to be used together with your professional insurance advisors in maintaining a loss prevention program. It is an overview only and is not intended as a substitute for consultation with your insurance broker, or for legal, engineering or other professional advice. Maxime Lefebvre is senior vice president, entertainment, at the global insurer Chubb. She can be reached at mlefebvre@chubb.com.
