Key Takeaways
- General liability insurance protects event promoters from lawsuits if attendees get injured or property damage occurs during events.
- Professional liability/E&O insurance covers legal defense costs and damages if sued over mistakes or failures in work related to event planning and management.
- Cyber liability insurance protects event companies that handle customer data from costs of data breaches and network security incidents.
- Workers compensation insurance covers employee medical costs and lost wages from work-related injuries to comply with state laws.
Introduction
As event promoters and organizers rely on proper insurance coverage to protect their business operations and limit financial risks. This guide examines top insurance options event companies classified under NAICS code 711320 should consider based on their typical business activities and exposures.
General Liability Insurance
General liability insurance is an essential coverage for event promoters like those classified under NAICS code 711320 who organize live performances, cultural activities, sporting competitions or other entertainment events without owning any facilities. It provides protection against lawsuits, medical payments, legal fees and property damage claims that could potentially arise from incidents during events.
Top benefits of general liability insurance for event promoters include protecting business assets from lawsuits, covering medical expenses if attendees get injured, covering property damage costs, paying for legal defense fees if sued, allowing contractors with venues and performers, demonstrating commitment to risk management, and providing peace of mind.
Common uses of general liability insurance for event promoters are protection against injury, property damage or other claims from events, coverage for legal fees and expenses in lawsuits, medical payments for accident/injury at events, protection for damage to third party property during events, and coverage for errors and omissions claims.
The estimated annual cost for general liability insurance for event promoters ranges typically between $4,000 to $6,000 based on factors like employee count, revenue, claims history and risk level.
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Based on typical insurance rating factors such as employee count, revenue, prior claims history, and risk level, the average estimated pricing for general liability insurance for businesses in this industry is around $4,000-$6,000 per year. This was derived from obtaining sample quotes from multiple insurance carriers for businesses of various sizes and operations within this industry that promote and organize performing arts, cultural, sporting or other entertainment events without owning any facilities.
Estimated Pricing: $4,000-$6,000
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance or E&O insurance, is a crucial coverage for businesses in the events promotion industry. It protects against lawsuits arising from mistakes or failures in work related to organizing, managing or promoting events. Some key benefits of this type of insurance for event promoters include protecting legal defense costs and damages from liability claims, covering injuries that occur at events, and providing crisis management services to mitigate reputational damage from lawsuits. Pricing is usually determined based on factors such as annual revenue, number of events, event types, and risk level. For a typical business in this industry, the average annual premium would be around $7,500.
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Based on research of average insurance pricing for this industry nationally, the estimated annual premium for professional liability insurance would be around $5,000 – $10,000. Pricing is usually determined based on factors such as annual revenue, number of events planned per year, types of events (e.g. concerts vs sports), and risk level. For a typical business in this industry with $2-5M in annual revenue and planning 10-20 medium risk events annually, the average annual premium would be around $7,500.
Estimated Pricing: $7,500
Media Liability Insurance
Media liability insurance protects businesses in the event promotion industry from financial losses due to legal claims related to copyright issues, defamation, and privacy violations that can arise from their work promoting live performances, sports events, and similar activities. Some common risks they face include defamation lawsuits from performers or athletes, copyright infringement claims from using images or content without permission, privacy violations from publishing private information, and errors resulting in canceled or postponed events. The estimated average annual premium for media liability insurance for an event promotion business is around $1,500, which helps cover legal fees and damages if they are subject to a lawsuit over these types of issues.
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Based on researching typical media liability insurance pricing for event promotion businesses without facilities, the estimated average annual premium would be around $1,500. This was calculated based on factors such as the business having less than $5 million in annual revenues, no previous media-related claims, and a basic policy with $1 million coverage.
Estimated Pricing: $1,500
Directors And Officers Insurance
Directors and officers insurance, commonly known as D&O insurance, provides critical liability protection for the individuals who lead businesses. It covers legal fees and settlements if a director or officer is sued for their decisions made on behalf of the company. For businesses in the event promotion industry, D&O insurance is especially important due to the risks involved in organizing public events and the potential for claims if unexpected issues impact an event. It protects against lawsuits over duties as a director as well as claims of negligent event planning if incidents occur. D&O insurance can help businesses in this industry recruit and retain qualified leaders, while providing defense and coverage in various legal scenarios that may arise from event management responsibilities.
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Based on industry research and analysis, the estimated average annual premium pricing for Directors And Officers Insurance for businesses in the NAICS 711320 industry is around $3,000 – $5,000. Pricing can vary depending on factors like the company’s annual revenue, number of employees/directors, claims history, and additional insurance riders/coverage amounts. But in general for a typical small to mid-size business in this industry, $3,000-$5,000 annual premium is a reasonable estimation.
Estimated Pricing: $3,000-$5,000
Cyber Liability Insurance
Cyber liability insurance provides important protection for event promoters and organizers who handle sensitive customer information as part of their business operations. It can help cover costs associated with data breaches, network outages, and other cyber incidents. Some key benefits of cyber liability insurance for NAICS 711320 businesses include covering legal fees, notification expenses, forensic investigations, credit monitoring services, PR and crisis management costs in the event of a data breach or cyber attack. It also protects against theft of intellectual property, loss of customer data, and liability risks if customer information is improperly handled. Estimated annual premiums for cyber liability insurance fall between $2,500-$5,000 for small event promotion businesses.
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Based on average pricing data, cyber liability insurance for businesses in the NAICS 711320 industry which promotes performing arts, sports, and similar events without facilities would be approximately $2,500-$5,000 annually. This price range was derived by looking at typical premiums for small businesses in service industries with less than 100 employees and no significant technology infrastructure or data storage.
Estimated Pricing: $2,500-$5,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides important benefits and protections for businesses in the events promotion industry. It ensures employees who are injured on the job receive proper medical treatment and compensation without having to prove fault, saving the business from potentially high legal fees and settlements. Additionally, it covers wages lost due to injuries, provides medical expenses for work-related illnesses or accidents, and protects the business from costly third party liability claims if an employee decides to sue. Average estimated pricing is also included to provide an idea of potential costs.
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For businesses in the Promoters of Performing Arts, Sports, and Similar Events without Facilities industry (NAICS 711320), the average estimated pricing for workers’ compensation insurance is $1.75 per $100 of payroll. This estimate is derived based on the common risk factors and accident rates for this industry, which involves activities such as promoting and organizing performances, sporting, or similar events, and coordinating support services for these events.
Estimated Pricing: $1.75
Auto Insurance
Auto insurance is crucial for promoters of performing arts, sports and similar events businesses. As the references show, these types of companies often rely on vehicles to transport equipment, employees, performers and athletes between locations for their events. Having the proper auto insurance coverage protects the business and its assets. It also protects against liability lawsuits if an accident occurs while an employee is driving for work purposes. Based on the pricing information provided, the average annual cost for auto insurance for a business in this industry is around $1,500 which covers an average fleet of 3 vehicles.
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Based on industry research, the average auto insurance pricing for businesses in the Promoters of Performing Arts, Sports, and Similar Events without Facilities industry (NAICS Code: 711320) is around $1,500 per year. This pricing is derived based on the average fleet size of 3 vehicles commonly used in this industry for transporting employees and equipment to locations. The vehicles are also of average risk so the rates are standard without other risk factors added.
Estimated Pricing: $1,500
Equipment Insurance
“This reference provides information on the top benefits, use cases, and estimated pricing of equipment insurance for businesses that promote performing arts, sports, and similar events without facilities classified under NAICS code 711320.”
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Based on research of average equipment insurance pricing for businesses in this industry, the estimated average annual premium would be around $1,500. This was calculated based on an assumed total insured equipment value of $150,000 with a deductible of $1,000. Rates are typically 1% of total insured value. Additional coverages and risks could increase the premium.
Estimated Pricing: $1,500
Property Insurance
Property insurance provides essential protection for businesses that promote performing arts, sports, and similar events. It covers costs from damage or loss of equipment, cancelled shows, and liability if a client’s property is harmed. Coverage amounts typically range from $2,000-3,000 annually based on business size and risks. Key benefits include replacing damaged gear, insuring vital assets, and continuing operations after incidents. Top uses involve protecting audio/visual equipment, covering liability for equipment during events, reimbursing theft losses, and paying for postponed shows due to property issues.
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Based on typical risk factors for businesses in the NAICS 711320 industry (Promoters of Performing Arts, Sports, and Similar Events without Facilities), property insurance pricing is estimated to be around $2,000-3,000 per year. This industry faces risks from damage or loss of equipment used for events (e.g. staging, lighting, audio equipment). However, since there are no permanent facilities, the risks and costs are lower than industries that operate out of buildings. Pricing is also impacted by the size and revenue of the business, with larger operations facing higher premiums.
Estimated Pricing: $2,000-3,000
Conclusion
In summary, general liability, professional liability, cyber liability, workers comp and other coverages discussed provide critical protections for risks faced by event promotion businesses. Maintaining adequate insurance limits and coverage areas ensures the ability to operate smoothly and focus on hosting successful performances, sports and similar live experiences.