In this article, Matthew Meredith, of LMP Group, talks about the value of insurance as an essential ‘link’ in events ‘chain’.

We are passionate about the industries we represent, being entertainment, sports, and media.  We understand that every moment counts, and every detail is crucial, every customer experience is critical.  One factor that we often see overlooked is engaging protection for the significant investment being made in build up to delivering your event: insurance.

Throughout my career, I’ve hammered home the importance of early-stage engagement with risk management.   We’ve witnessed, firsthand. the critical importance of securing insurance for tours, festivals, and events as early as possible.  As an experienced professional, I want to share why engaging with risk, at the onset—ideally, as soon as you put tickets on sale or finalise the deal memo—is not just advisable, but essential.

Why Early Insurance Engagement Matters

The primary reason for securing insurance at the earliest opportunity is to protect against the full spectrum of risks associated with events. From cancellation and postponement to rescheduling, even to changes in the political and social ‘winds’ of the time. the potential impacts are far-reaching and often unforeseeable. Most balance sheets, in the festival sector for example, are highly sensitive to the impact of cancellation.  Some never recover from the impact of a total cancellation.  By insuring your event from the outset, you safeguard against the financial implications of these uncertainties, ensuring that your investment is protected, no matter what happens.

1. Mitigating Financial Risk

Insurance is your financial safety net, it’s the oil in the cogs of industry.  Some see it as a liability, until they have a claim, then it’s most definitely an asset!  Contingency insurance (cancellation/non-appearance) is designed to event cover risks that could otherwise have significant monetary consequences. None of us are clairvoyant, the future is not known, the cost of not engaging insurance can, in some cases, be terminal.  Securing insurance early allows you to secure protection for almost all possible outcomes, from the very beginning, for a small percentage of the overall budget. Whether it’s a last-minute venue cancellation, unforeseen artist issues, adverse weather conditions, terrorism events, or unforeseen labour strikes, having insurance in place means you’re not left bearing the brunt of unexpected costs.

2. Premiums and Value for Money

An important factor to consider is that insurance premiums are generally calculated based on a percentage of the gross budget for the  music, conference, or media event.  This means that the duration of the policy period often doesn’t affect the premium amount. You may have been in the development or pre-production state for months beforehand, however we have seen clients calling us place insurance a week before the event.  It’s economically and risk prudent to purchase a policy early. By doing so, you lock in your coverage at the earliest possible stage, you ensure your outcomes, you maximise value for money and you help ensure that every feasible aspect of the event is safeguarded from potential risks.  The cost is the same for a two-week policy, as it is for a ten month policy, and as you’ll know, exposures engage and soon as you begin the journey to delivering the event.

3. Ensuring Comprehensive Coverage

The earlier you secure insurance, the more comprehensive your coverage is likely to be, the greater access to market capacity and appetite you are likely to find.  This early engagement provides ample time to assess the specific risks associated with your event, to ensure a full sweep of the insurance marketplace, and importantly opportunity to tailor the policy to address these needs comprehensively. It’s not just about ticking a box; it’s about crafting a safety net that aligns with the unique aspects of your tour, festival, or event.

The Importance of a Specialist Broker

Expertise in entertainment, sports, and media insurance is key.  We embody that in the vast amount of combined experience our people have. Our team understand the complexities and nuances of these industries, we’re passionate about the space and that shows in our enthusiasm, breadth of knowledge and in the commitment to our clients.  These combine to give our customers the unparalleled guidance and true partnership in the ‘transfer of risk’  for the great work that you do.  By engaging in risk management, early in the planning process, you can only gain a benefit.

In summary:

• The timing of engaging with risk and insurance risk transfer, is not just a matter of financial strategy but a crucial element of protecting your investment, your hard work and the outcomes you’re investing in.
• The premiums you pay are often the same for two weeks, as they are for ten months.  Secure insurance as soon as you can – as soon as you agree the artist guarantee, or at the ‘onsale’ date of your ticket inventory.
• Protect yourself and your organisation from potential financial pitfalls and costly mistakes.  We are here to help you navigate these waters with confidence and in partnership with true experts.
• Insurance is often a tiny percentage of your earnings, it’s an asset, not a liability.  Try to treat it as such.