Cancellation Insurance
What is Cancellation Insurance?
Cancellation Insurance replaces commission lost as a result of the inability of or loss of opportunity for artists to perform. It can also help with efforts to reduce further losses (eg: chartering a plane to get around a transport strike). However, pre-existing medical conditions, lack of interest/ticket sales, financial insolvency and pencilled dates without letters of agreement are not covered.
How much should I insure?
It may not be worth insuring every artist for every contingency – most managements absorb attritional losses of around 5% of commission in a normal year. You know where you’re most exposed.
- Artists/events: you could insure only your biggest earners or most lucrative events.
- Period: individual concerts, specific tour dates or an annual policy covering all of your events throughout the year.
- Perils: look at your contractual obligations – which perils would hit hardest? Illness/injury? Venue issues like flood, fire, loss of power, strike? Transportation – mechanical breakdown, strike, weather?
You could simply cover your top 5 earners, eg:
| Artist | Profession | Income £ |
| Hepburn | Actor | 80,000 |
| Shakespeare | Writer | 160,000 |
| Lanza | Singer | 140,000 |
| Karajan | Conductor | 30,000 |
| Nijinksy | Dancer | 20,000 |
Total = 430,000
How much does it cost?
The premium is a rate percent of the total sum insured. Ranging from 1% to 3%, factors include artists’ ages, cancellation history and level of income. On the example given, the premium would be between £4,300 and £12,900.
Be smart: identify your weak spots, quantify the potential impact of cancellation and get specialist advice to make sure you don’t pay more than you need to.
For more information contact Paula Hawthorne.
Paula Hawthorne ACII
Head of Performing Arts
paula.hawthorne@laplayainsurance.com
 | Talk to me on 01223 200654 |
 | Download Cancellation Insurance |
Testimonial
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