COVER YOURSELF: INSURANCE HINTS
Prepared by Walton & Parkinson Limited
Insurance Brokers
20 St Dunstans Hill
London EC3R 8PP
Tel: 0845 218 4140
Fax: 0845 218 4141
Email: enquiry@waltonandparkinson.co.uk
INTRODUCTION
Theatrical productions need to have some insurance by law and quite a bit more through prudence. Benjamin Franklin said that “in
this world nothing can be said to be certain, except death and taxes” and it is true that only rarely can future events be predicted with
absolute confidence. It is therefore vital to try to avoid, or at least to minimise, the unpleasant results of the unexpected.
TYPES OF INSURANCE POLICIES FOR THEATRICAL PRODUCTIONS
Insurance policies fall into four basic categories:•
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Covering physical effects for loss or damage
Covering third party liabilities: injury to persons or damage to property
Covering business interruption or cancellation of one or more performances
Covering personnel: either as key people to a production in which their non-appearance would force its cancellation, or for
those involved in hazardous work, or because they are travelling abroad.
Each of the four types of insurance can be broken down into sub-divisions specifically referring to the type of work you will be
undertaking.
LOSS OR DAMAGE
Insuring against loss or damage to physical assets in the case of a drama or musical would cover sets, props, costumes, lighting and
sound equipment, musical instruments, skips, wig blocks and all other production material including front of house photographs etc.
All such items need insurance protection against loss or damage all the time whilst they are your responsibility; including when in
transit, when in use or when in temporary storage.
Money should also be insured against loss.
EMPLOYERS LIABILITY AND PUBLIC LIABILITY
Every employer is required by UK law to have Employer’s Liability Insurance, which provides up to £10 million indemnity for any
employee who suffers a work-related accident or illness.
© Walton & Parkinson Ltd Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: enquiry@waltonandparkinson.co.uk.
A minimum of £2 million indemnity is recommended by insurers for Public Liability claims involving injury to other persons or damage
to third party property caused by the negligence of the Insured.
BUSINESS INTERRUPTION OR CANCELLATION OF AN EVENT
There could be loss or damage to the theatre, sets or equipment, or one or more of the cast might fall ill or have an accident. If a tour
is cancelled then you might well suffer loss of fare monies and transportation costs as well.
PERSONNEL
For those involved in hazardous or potentially hazardous work during performance or fit-up, Equity requires that producers take out
appropriate insurance for death, loss of limbs, eyes etc. and permanent total disablement for a sum of not less than £30,000 and
weekly benefits for temporary total disablement relating to between 75% and 100% of the individual’s normal earnings.
If travelling abroad, you have to take out Travel Insurance involving temporary Life Insurance, Medical Insurance, Personal Effects and
subsistence costs if the cast’s return is delayed.
COSTS
The cost of the relevant insurance for your particular production depends upon numerous factors such as reinstatement values of
physical assets, the payroll, the likely costs and commitments in the event of a cancellation, the age and health record of artists and
sometimes the nature of the work involved. Invariably, the cost of the insurance amortized over the period of the production is often
one of the smallest elements of the budget.
It would appear that few insurance companies have much experience of theatre, so it is advisable to use a specialist broker who will
be able to assess your needs and provide quotations for cover with a proper understanding of what your production involves. It is the
insurance broker’s role to evaluate the risk factors and match the risks involved with the appropriate insurance - bought at the best
price commensurate with breadth of cover and the security of the insurer, coupled with their concern to settle claims fairly and
promptly.
© Walton & Parkinson Ltd Sponsored by Walton & Parkinson Ltd, insurance brokers to the theatre industry.
Tel: 0845 218 4140. Email: enquiry@waltonandparkinson.co.uk.