Entertainers Coverage Definitions

Commercial General Liability - Commercial General Liability coverage is designed to protect the Insured against lawsuits brought by Third Parties for Bodily Injury and/or Property Damage arising out of a specific occurrence while on tour, on location, or at the Insured’s business premises. The injury and or property damage must occur during the term of the policy and within the policy’s territory the policy will only pay to the policy limit. Defense Costs are paid outside the limits of the policy.

Coverage Example: A pedestrian approaches the insured for his or her autograph. The next day, the pedestrian hires an attorney, claiming that the insured tripped him. The cost of hiring the attorney and such investigations would be paid ‘outside’ the limits of the policy and would not exhaust the per occurrence limit.

Employee Benefits Liability - If the insured provides benefits to their employees; this coverage provides liability protection for the insured for suits arising from mismanagement of said benefits.

Coverage Example: The insured proves healthcare for their employees. After Termination of the employee, the insured neglects to offer a Cobra medical plan to their employee when they were eligible for a Cobra plan. This coverage provides defense costs for suits brought against them as well as for a settlement/judgment.

Comprehensive Personal Liability - Provides coverage for Bodily Injury and/or Property Damage arising out of the Insured’s Personal Non-Business related activities. This coverage includes any primary or secondary residences and rental properties. This coverage has to be endorsed to the Commercial General Liability policy and is changed separately.

Coverage Example: The insured goes boating with friends and they hit a person in the water. The other person sues the insured for negligence. The insured’s defense costs will be paid outside the policy limits, and there will be money available for a settlement/judgment.

Third Party Property Damage - Provides coverage for damage to or destruction of property of others that is in the care custody &/or Control of the insured.

Coverage example: The insured has a pre-show party in their dressing room at a venue, and a mirror is broken and the room is trashed. This policy provides coverage for this situation.

*Please also note that Tossing Objects and/or Selves, Mosh Pits, and Stunts are generally excluded from General Liability policies unless the exclusions are specifically lifted from the policy for an additional premium*

Pyrotechnics - Please remember that pyrotechnic coverage is excluded on the General Liability policies. It can however; sometimes be “bought back” provided we can give the carrier details of the pyrotechnic plan, the pyro company’s insurance documentation (including a Certificate of Insurance naming the insured as an Additional Insured on their policy), and a copy of the pyro-technician’s license.

Commercial Auto Liability Insurance - Commercial Auto Liability coverage is designed to protect the Insured against lawsuits brought by Third Parties for Bodily Injury and/or Property Damage arising out of a motor vehicle accident. Since we name both the Corporation and the Individual on the Named Insured Schedule, we can include the insured’s personal vehicles on the Commercial Auto Policy. This allows for easier access to higher limits of liability, and although the carriers are concerned with the insured’s ‘Motor Vehicle Reports they are more likely to insure drivers that have some activity on their driving record than when this coverage is written on a personal basis.

Lease Gap Insurance - Provides coverage when a vehicle is a declared a “total loss” due to damage or theft, by paying the difference between the Borrower’s Loan balance and the primary auto insurance settlement based on actual cash value of the vehicle. Lease Gap is not available in these states, CT, LA, ME, NE, NH, NM, NV, VA, WA.

Rental Reimbursement - Reimburses the Insured for the expense for a rental vehicle resulting from an accident. Subject to a daily maximum limit and the total number of days. ($50 per day/30 Days standard, this limit can sometimes be increased for additional premium)

Drive Other Car Coverage - An endorsement added to the policy, which is designed to protect those persons named in the endorsement while they are driving vehicles other than those that are owned by the Named Insured.

Non Owned & Hired Auto Liability & Physical Damage Coverage - Protects the Insured against Third Party suits arising from an automobile accident while an employee or independent contractor is using their vehicle during the course of the Insured’s business and has an accident. This includes coverage for rented and hired vehicles such as a Limo, Buses, and Rental Cars etc., which are used for Business Pursuits of the Insured. ***NOTE: This does not replace the insurance for the employee’s vehicle. They should carry their own insurance. This is just designed to protect the interests of the insured.

Coverage Example: The Insured sends his/her assistant out to run an errand and gets into an accident. The individual the assistant gets into the accident with sues both the assistant and the insured (since the assistant was on business while driving.) The assistant’s personal auto policy will pay for his/her defense, settlement and damages to his/her vehicle. If the insured has Hired & Non-Owned Auto coverage, it provides for their defense costs, as well as any settlements or judgments against the insured.

*Please keep in mind that unless we have a Schedule of Insurance on file, any losses may be treated as Unscheduled Equipment Limit, and may be settled on an Actual Cash Value basis. To avoid any coverage questions, an updated schedule of equipment should be forward to our office.*

Workers’ Compensation - Most State Laws requires that any business with (1) or more employees carry Workers’ Compensation coverage. If an employee is injured in the course of employment, this coverage pays for hospital and doctor bills, disability or death benefits, according to the laws. If on an insured is on tour or on location, coverage is generally held to apply on 24-hour basis while the employees are away from their lace of residence.

We strongly recommend that all Executive Officers be included under the Workers’ Compensation coverage as Most Major Medical plans (including but not limited to those offered by S.A.G & A.F.T.R.A.) specifically exclude coverage for work related injuries and illnesses. Keep in mind that Executive Officers are subject to maximum/minimum payroll declarations, which vary from state to state.

This coverage excludes employees hired from the Monopolistic States - Ohio, North Dakota, Washington, West Virginia, and Wyoming. In addition, it includes coverage outside the U.S., its possessions, Puerto Rico and Canada for employees of a US company except it will not cover Third Party Nationals in their home country.

Stop Gap Coverage - Provides Employers’ Liability coverage in Monopolistic States. Monopolistic States require that Workers’ Compensation coverage be purchased for employees of that sate through that state’s Workers’ Compensation Bureau. However, Employers’ Liability is not offered by these State Bureaus, therefore, Stop Gap Coverage can be endorsed to pick up the missing coverage.

Foreign General Liability - Foreign General Liability provides essentially the same coverage as a Commercial General Liability, except that coverage is EXCLUDED in the U.S., its possessions, Puerto Rico and Canada. Foreign General Liability coverage protects the Insured against lawsuits brought by Third Parties for Bodily Injury and/or Property Damage arising out of a specific occurrence while on tour, on location, or at the Insured’s temporary business premises while the insured is abroad.

Foreign Workers’ Compensation provides Employers’ Liability while not in the U.S. its possessions, Puerto Rico and Canada.

Repatriation provides coverage for necessary medical, funeral &/or travel expenses when an injury, illness or death occurs in a foreign country.

Commercial Umbrella - This type of liability insurance provides excess liability protection for the insured once the limits of the underlying policy have been exhausted. The Commercial Umbrella policy acts essentially as an extension of the underlying policy, meaning it follow the terms & limitations of the underlying coverage to determine if coverage is applicable under this policy. Please Review the Insured’s current limits to see if they are sufficient to cover his/her current assets, as higher limits are available.

Equipment Floater - This policy provides “All Risk” protection against the loss of owned or rented Schedule &/or Unscheduled equipment due to theft or damage. Property covered includes, but is not limited to, musical, sound and lighting equipment, stages and wardrobe. Coverage is usually written on a worldwide basis. Please review the insured’s current limit to determine if the current limits are sufficient.

Crime & Employee Dishonesty - This policy provides insurance for loss of money & securities resulting directly from Theft (any act of stealing), Disappearance or Destruction. It applies while the money & securities are on the Insured’s premises, while in the custody of the insured’s messenger while conducting business at the bank, and while off the insured’s premises in the custody of the insured or the insured’s messenger. This is especially important with Tour Managers who carry large amount of currency with them during a Tour.

Coverage can be extended to include Forgery, Robbery, Safe Burglary, Employee Dishonesty and Pension Plans.

Money & Currency - We recommend Money and Currency coverage for all touring entertainers. This coverage provides coverage for monies while locked in safes and vaults (e.g. hotel vaults). Coverage is also provided while in the custody of a messenger, approved by the Named Insured, tin the course of and while performing his or her duties as a messenger and while on the Insured’s Business Premise during the normal hours of business. Loss also extends to property arising of fire, burglary and/or armed robbery.

Accounts Receivable - Provides protection for : All sums due you from customers, providing you are unable to effect collection thereof as a direct result of loss or damage to records of account receivable; Interest charges on any loan to offset impaired collections pending repayment of such sums made uncollectible by such loss or damage; Collection expense in excess of normal collection cost made necessary because of such loss or damage; Other expense when reasonably incurred by you in re-establishing records of accounts receivable following loss or damage.

Building (Real Property) - Covers the building or structures listed and described in the declarations page of the policy against perils such as fire, wind, water (falling not rising water), falling objects, aircraft and explosion. Other coverage’s such as flood & earthquake can be covered by endorsement or purchase of separate policies.

Business Personal Property - All tangible personal property used in business, excluding computers. This coverage can also include recording equipment that is permanently fixed to a location. (i.e. Sound Mixing Boards, Recording Equipment, Permanently affixed speakers, and microphones.)

Business Income - Net income(net profit of loss before taxes), plus normal continuing operating expense e.g. utilities, including payroll.

Extra Expense - Includes expenses that occurred which reduced the “business interruption loss”.

Electronic Data Processing (Computers) - Covers the hardware, software, and data/media while in transit or at the office location. Often includes coverage for electrical & magnetic damage, mechanical breakdown & high temperature & humidity changes as well. While computers can be scheduled to the Equipment Floater, this coverage offers broader coverage for the computers. (More underwriting information about storage, tape back up and building security is required for this coverage.)

Valuable Papers - Covers records and documents that would have to be reconstructed in the event of a loss. Valuable papers that cannot be reproduced must be covered for a specific amount. (i.e. Manuscripts, Screen Plays, Sheet Music, etc.)

Non-Owned Aircraft - This coverage provides contingent Non-Owned Aircraft Liability coverage on behalf of the Named Insured for use of an aircraft for other than filming operations where the Named Insured for use of aircraft liability insurance e.g. charters, scouting, scheduled air etc. It is designed to protect the Insured’s legal liability for bodily injury and/or property damage to third parties. This contingent coverage contemplates that the owner’s liability insurance is primary.

Errors & Omissions - Errors & Omissions insurance protects the insured from claims of copyright infringement, plagiarism, invasion of privacy, libel, slander or defamation of character. This coverage protects the insured’s assets and pays for the defense of the claim. (Defense costs are usually included in the policy limits, so this should be taken into consideration when determining how much coverage is necessary.) Types of Errors or Omissions Policies Available: Composers, Authors, Performers/Celebrity, Music & Publishing, Producers, Distributors and Acquisition & Development.

Cyber Liability - Internet Liability is designed for entities whose primary business focus is the dissemination of information and/or performance of services utilizing on-line technology. An Internet Liability policy provides coverage for third party liability suits which may result from: Unauthorized uses of titles, format characters, plots, plagiarism and unfair competition; Libel/Slander; Defamation; Invasion of Privacy and Confidentiality; Infringement of copyright, trademark, patent, trade dress or trade secret; Breach of contract; Interruption of Service; Impairment of Service: Publishing Liability or Content Liability which has been committed or has been alleged to have been committed in the course of e-commerce operations.

Employment Practices Liability - Employers today face many complicated issues. Among them is the very real threat of lawsuit. Employee-related suites are among the fastest growing and most publicized areas of litigation. Industry figures indicate employees initiate over 20% of all claims against Directors and Officers. Dissatisfied employees may seek a jury trial and punitive damages in addition to actual and compensatory damages. Even unintentional violations can cost a company millions. Standard Worker’s Compensation, General Liability and Directors & Officers policies do not provide adequate coverage, but protection is available all three of the major areas of Employment Practice exposure; Wrongful Termination, Discrimination and Sexual Harassment. (Allegations of failure to promote, breach of contract and invasion of privacy also fall under the scope of this policy.)

Non-Appearance Coverage - This will cover the Insured’s expenses and/or guarantees if the insured is unable to perform a specified concert due to Injury, Illness, and several other causes.

Director & Officers Liability - This coverage is designed to protect the personal assets of Directors & Officers from catastrophic financial loss resulting from lawsuits brought against them based upon actual or alleged wrongful acts arising from the execution of their day to day duties & management functions. This coverage also provides reimbursement to the organization when it is required or permitted by law to indemnify the directors or officers for their losses.