Managing Insurance for Large Concert Tours and Festivals

Handling insurance for large concert tours and festivals is a complex task filled with various risks and types of coverage needed to ensure everything runs smoothly and safely.

The Lucrative Eras Tour and Major Music Festivals

Taylor Swift’s Eras Tour is expected to generate nearly $6 billion by the end of this year, making it one of the most profitable tours in American history. This tour is not only filling stadiums but also boosting local economies wherever Swift performs. Whether it’s the Eras Tour or major music festivals like Lollapalooza or Coachella, which sees about 125,000 attendees daily, the stakes are incredibly high, and so are the insurance needs.

Equipment Coverage for World Tours

For brokers working with clients on large tours, insuring equipment is a crucial first step. Alan Hollingsworth, chief sales officer at HUB International, emphasizes that the risk of damage to music equipment, staging, and lighting increases with the number of stops on a tour. He points out the logistical complexities, stating, “If a show is happening in one city, it’s likely that preparations for the next stage are already underway in the next city. Equipment insurance plays a crucial role, so large tours will carry big limits on that end.”

For grand tours like the Eras Tour, equipment costs can reach millions of dollars. Insurance coverage limits for equipment vary based on tour size, locations, equipment value, and specific coverages needed. High-profile clients on world tours need high coverage thresholds to ensure complete protection.

Types of Liability Coverage Needed

Liability insurance is essential to protect event promoters or artists from potential claims due to attendee injuries or fatalities. This was highlighted by a tragic incident at Swift’s Eras Tour, where a fan died from heat exhaustion in Brazil. The event organizer, Time4Fun, faced significant backlash and responded by improving their event protocols to address heat-related risks, such as adding more shaded areas.

Apart from equipment coverage, brokers should ensure the following liability coverages are in place:

• General Liability Insurance: Covers third-party bodily injury and property damage, crucial for accidents involving attendees or venue property.
• Event Cancellation Insurance: Protects against financial losses from unforeseen cancellations or postponements.
• Workers’ Compensation Insurance: Covers medical expenses and lost wages for tour employees injured on the job.
• Professional Liability Insurance: Covers claims of negligence or failure to perform professional duties.

Risk Mitigation on the Road

For brokers, understanding the overlapping risks and complexities of large concerts is key. Tailoring coverage to the unique needs of each event is essential, along with advising clients on risk mitigation strategies to reduce the likelihood of claims.

Strategies Include:

• Detailed Planning: Thoroughly plan logistics, including transportation and accommodation.
• Contractual Agreements: Use well-drafted contracts with vendors and venues to specify responsibilities and liabilities.
• Equipment Management: Regularly inspect and maintain equipment to prevent failures.
• Contingency Plans: Have backup plans for potential issues like illness or equipment breakdowns.
• Training and Rehearsals: Conduct regular training and rehearsals to minimize performance risks.
• Experienced Tour Managers: Hire experienced tour managers to oversee operations and handle unforeseen challenges.

Hollingsworth highlights the importance of proactive risk management, especially for large tours like the Eras Tour. He states, “Particularly, with the Eras Tour, it’s an unbelievable experience. There’s so much joy in witnessing what’s happening on stage. You don’t want to be the person that’s bringing potential negativity to that experience, but at the same time, it’s important to get ahead of potential risks.”

By understanding and addressing the intricate insurance needs and risks associated with large-scale concert tours and festivals, brokers can help ensure that these events are not only successful but also safe and well-protected.

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