From general liability to workers’ compensation, learn how to understand and purchase the right insurance for your entertainment and events business. Check out our comprehensive articles and resources to discover how you can protect and grow your business.
Entertainment and Events Insurance Basics
Types of Entertainment and Events Insurance
Who needs entertainment and events insurance?
Almost every business involved in the entertainment and events industries could benefit from some minimum levels of business insurance coverage. Whether you operate a nightclub and are exposed to a litany of risks, from liquor liability to third-party bodily injury lawsuits, or run a small event planning business and just need coverage for your work vehicle, there are a variety of business insurance policies and insurers that can suit your needs.
If your business meets any of the following criteria, you should consider investing in business insurance:
- You provide professional services
- You own or lease office or retail space
- You host members of the public on your business property or at third-party venues
- You own or lease a company vehicle or use your own personal vehicle for your business
- Your business owns valuable property, such as audio-visual equipment
- You deal in cash transactions or have employees handle payments
- You employ others
Entertainment and Events Insurance by Profession
Why is entertainment and events insurance important?
Accidents and injuries are commonplace.
Benefits: Accidents in the office are a common occurrence, and if your work brings you to outside venues and unfamiliar territory, there could be a greater risk of injury. In the entertainment and events industry, your business may play host to hundreds or thousands of members of the public, greatly increasing the chance for an accident or injury to occur. Furthermore, your employees may be at higher risk if they are involved in physical labor such as transporting heavy equipment or working from heights.
Risks: Without insurance, a single accident or injury could put your entire business at risk. If your business is unable to come up with the funds to pay for damages or pay the legal fees necessary to defend your business, you may need to sell your business assets or declare bankruptcy.
Owning or operating a commercial space opens your business up to a number of risks.
Benefits: If your business depends on the physical space and property that you own or lease, business insurance can be a lifesaver. If you own a nightclub or event space, commercial property insurance can provide funds to repair or replace business property that is damaged by a covered peril, including fire, theft, vandalism, and more. If your business needs to shut down temporarily due to property damage, business interruption insurance can provide funds to cover lost income and operational expenses.
Risks: If your business property is central to your operations, not having property coverage can put your company at severe risk. If a natural disaster occurs or if your commercial space is burglarized, you may have difficulty recovering financially on your own. Without insurance, you will be picking up the entire cost of repairing or replacing damaged or lost property, and if your business is forced to shut down temporarily, you will need to pay out of pocket to keep your business going.
Certain types of business insurance may a requirement of doing business.
Benefits: Entertainment and events businesses may be subject to local laws requiring them to carry certain types of coverage, which can include workers’ compensation insurance and liquor liability insurance. Even if your business is not obligated to carry coverage by law, those that you work with may require you to show proof of insurance as a condition of doing business. Many venues and event spaces will require those that use their space to carry liability insurance in order to minimize their own risk. Even in the safest conditions with the best companies, accidents or injuries can happen, which is why insurance is a necessary solution. If an employee or guest is injured, insurance will cover you financially and may very well be required by law.
Risks: Without liability insurance, your organization may be open to financial loss should a third party or employee get injured or sick as a result of your business activities. Moreover, multiple accidents or lawsuits could lead to financial losses that ruin your business. If coverage is required by law, defying these requirements could land you in legal trouble resulting in penalties, fines, and in some cases, imprisonment.