Why do you need business insurance?
Anything can happen in life without notice, including in your business. As business managers, we highly recommend securing the appropriate commercial insurance coverages for your company. These include general liability, workers' compensation, equipment coverage, employer's liability, data compromise, and more. These policies cover a wide range of incidents including injury on the job, theft, accidents at shows or in studios, and issues with disgruntled employees. There are a lot of things you can and should be insured for as your business takes off!
Depending on the size and nature of your company, the policies for these can range anywhere from a couple thousand to many thousands of dollars. Some new clients are intimidated by the thought of commercial insurance and the costs associated with it. We suggest starting with the basics, at the very least -- general liability and workman's compensation. These two policies will usually cover incidents that happen on the road, at home, and in your office or studio.
We would always place these coverages in hopes of never using them, but I was swiftly reminded that anything could happen when I read an article today in The Hollywood Reporter about a crew member on the set of Motley Crüe's documentary set in New Orleans. The rigger was struck by some sort of electrical accident and has been hospitalised. Thankfully, we have read that the crew member will make a full recovery, but who will be responsible for his medical bills?
Answer: the employer.
We don't work with this particular artist, but it would be likely that the crew person is either hired by the band or an affiliated production company. These companies more than likely carry worker's compensation insurance that should cover a bulk of this expense. If they didn't have this coverage, then we would suspect that all related parties will be on the hook for this incident.
Even with the medical costs covered through insurance policies, that doesn't leave everyone involved completely off the hook. In situations like these, a production company, the artist, the venue, and anyone else closely related could be pushed for damages from the rigger that was injured. In this case, the general liability insurance should kick in and shield the policy holders from a horrendous payout -- even if only partially.
That is just one example of an everyday situation going completely awry, leaving all involved left to pay the piper.
Moral of the story: examine your liability exposures and discuss with your business manager about securing appropriate coverages at limits that make sense for your company.