Key Takeaways
- General liability insurance protects against third party claims from injuries during shows.
- Property insurance covers losses from fire, theft or damage to instruments and equipment.
- Workers’ compensation provides wage replacement and medical care if employees are injured.
- Equipment insurance replaces valuable gear if it’s stolen or damaged.
- Business interruption funding pays expenses if unexpected closures disrupt operations.
Introduction
Businesses in the performing arts industry face unique risks that require tailored insurance protections. As a performing arts company with NAICS Code 7111, it’s important to understand the types of coverage available to safeguard your operations and finances.
General Liability Insurance
General liability insurance provides protection for performing arts companies in case of incidents during shows and events that could result in bodily injury, property damage, or other legal claims from third parties. It helps cover lawsuit expenses and settlements in these situations.
The top benefits of general liability insurance for performing arts companies include protecting against third party claims of bodily injury or property damage during performances. It also covers legal fees and costs if claims are filed, and provides liability protection if intellectual property is infringed upon. Maintaining general liability insurance is important for performing arts businesses to safeguard against costly lawsuits.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data, the average general liability insurance pricing for performing arts companies with NAICS code 7111 is around $2,000 – $3,000 per year. This pricing is derived based on factors such as number of employees, gross revenues, types of performances/shows, and claims/loss history. The average performing arts company in this industry has 10-50 employees and $500,000 – $5M in annual gross revenues.
Estimated Pricing: $2,500/year
Property Insurance
“Property insurance provides important protection for performing arts companies by covering potential losses and damages to valuable equipment, property and assets essential to their operations. It also helps them deal with financial impacts if there are disruptions to business activities. Common types of coverage include protection against accidental damage, fire, floods, theft, vandalism, and liability claims. Estimated pricing is around $2.50 per $100 of insured assets.”
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry averages, property insurance for performing arts companies with NAICS code 7111 would be approximately $2.50 per $100 of insured assets. This price is derived from analyzing typical property values and risks for theaters, dance companies, musical groups and other performing arts businesses. Higher property values or greater risks may increase the price.
Estimated Pricing: $2.50/$100 of insured assets
Equipment Insurance
The performance arts industry relies heavily on expensive equipment to put on shows. Having proper insurance can help protect this valuable equipment against losses like theft, damage or accidents so performances are not disrupted.
Some key benefits of equipment insurance for performing arts businesses include protecting expensive instruments, covering replacement costs, and providing reimbursement for lost income if equipment is damaged and shows cannot go on as scheduled. Common types of equipment covered include musical instruments, audio/visual equipment, costumes, electronics, and items used for productions, tours and performances. Pricing typically runs from 1-3% of total insured equipment value per year.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry averages, equipment insurance for performing arts companies with NAICS code 7111 typically costs between 1-3% of the total value of insured equipment per year. For a company with $500,000 worth of equipment, the estimated annual pricing would be $5,000-$15,000.
Estimated Pricing: $5,000-$15,000
Workers’ Compensation Insurance
Workers’ compensation insurance is an important protection for businesses in the performing arts industry. It covers costs if employees are injured on the job and ensures they receive support for medical care, lost wages and getting back to work. This type of insurance is particularly useful for performing arts companies due to the physical nature of rehearsals, performances and specialized materials/equipment that can increase injury risks. On average, workers’ comp insurance rates for businesses in this industry are estimated to be $2.50 per $100 of payroll.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data, the average workers’ compensation insurance rate for performing arts companies with NAICS code 7111 is approximately $2.50 per $100 of payroll. This rate is derived based on risk classifications and loss histories specific to this industry sector which includes theaters, dance companies, musical groups, and independent artists. Higher rates may apply for companies with more hazardous operations or injury histories.
Estimated Pricing: $2.50 per $100 of payroll
Directors And Officers Insurance
According to the reference provided, Directors and Officers (D&O) insurance provides essential liability protection for leadership roles within performing arts companies by covering legal costs and damages from lawsuits against directors and officers related to their roles and duties. It mitigates the risks directors and officers face when making business decisions that could potentially put the company or themselves at legal risk.
The reference also outlines some of the top benefits of D&O insurance like protecting personal assets, attracting qualified board members, and reimbursing defense costs for unsuccessful claims. It provides examples of common use cases like defending shareholder lawsuits and covering claims from investigations. Finally, it estimates the average annual pricing is $5,000-7,500 for small to mid-sized performing arts companies with revenues between $2-10 million.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on research, the average pricing for Directors And Officers Insurance for small to mid-size performing arts companies with revenues between $2-10 million and NAICS Code 7111 is around $5,000-7,500 annually. The pricing is usually calculated based on factors such as the company’s revenues, number of employees/directors, types of risks involved, any prior claims, and insurance limits required.
Estimated Pricing: $5,000-7,500
Business Interruption Insurance
Business interruption insurance provides critical financial protection for performing arts companies and organizations in case their operations are impacted by events outside of their control like natural disasters, power outages, disease outbreaks or property damage. It helps ensure they have the resources to survive a temporary closure and reopen once the disruption has passed.
Business interruption insurance can help cover lost profits, ongoing business expenses, and extra costs associated with rescheduling events during periods where operations have been interrupted. It provides funding to pay things like salaries, rents, taxes, and other operating costs. This protects the financial viability of performing arts businesses during unexpected disruptions to their normal activities and performances.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Business interruption insurance for businesses in the performing arts industry typically costs between 1-3% of gross annual revenues with a waiting period of 30 days. This pricing is estimated based on the high risk of cancellation or postponement of performances due to various factors like weather, disease outbreaks, or other unexpected events. The average gross annual revenue for a mid-size performing arts company is around $5 million. Therefore, the estimated annual premium would be $50,000 – $150,000.
Estimated Pricing: $50,000 – $150,000
Conclusion
By consulting insurance professionals and considering this overview of common options, you can make informed decisions about building a comprehensive risk management plan tailored to your company’s needs and exposures in the performing arts industry.