Performing arts organizations face unique risks that extend beyond opening night. From transporting expensive equipment to managing volunteers, board responsibilities and educational programs, exposures can arise long before the curtain goes up and long after the audience leaves.
When evaluating these accounts, here are five commonly overlooked coverage considerations that can help agents build a more complete insurance solution:
1. Overlooking Property That Travels
Costumes, props, instruments and production equipment may travel between storage, rehearsals and performance venues. Does the organization have the right inland marine coverage for property on the move?
USLI solution: We can offer Inland Marine with limits up to $500,000. Scheduled items such as instruments or theater property would have a maximum limit per item of $25,000.
2. Forgetting About Volunteer Injuries
Volunteers help keep many performing arts organizations running smoothly. They sell tickets, usher guests, build scenery, manage concessions and support fundraising efforts.
USLI solution: We can offer volunteer excess medical accident coverage in many states on an admitted basis with $25,000 per occurrence/$75,000 aggregate.
3. Underestimating Board and Management Exposures
Performing arts organizations face more than operational risks. Board members may encounter allegations involving financial oversight, copyright issues, governance decisions, ADA compliance, employment concerns, or management practices. These exposures often receive attention only after a claim occurs.
USLI Solution: We can quote the D&O/EPL within our arts package to include coverage on a robust basis. The same forms are available standalone.
4. Focusing Only on Performance Day
Many organizations purchase coverage with a specific performance or event in mind. However, their operations continue throughout the year. Rehearsals, auditions, costume fittings, fundraising activities and organizational meetings all create exposures that may not be addressed by event-only coverage.
USLI Solution: Our annual package policies can provide broader year-round protection and may be more cost-effective than securing coverage for individual events
5. Missing Exposures From Educational Programs
Acting classes, dance instruction, music lessons, and workshops can generate valuable revenue and strengthen community engagement. They also introduce additional liability considerations.
Organizations offering instructional programs should be evaluated for these exposures during the underwriting process.
USLI Solution: Coverage can be extended to classes and workshops with minimal underwriting information, and Abuse & Molestation coverage may also be available.
Look Beyond the Curtain
The best-performing accounts are built by understanding everything that happens behind the scenes, not just during the performance itself. By asking a few additional questions about volunteers, traveling property, management exposures, year-round operations, and educational programs, agents can uncover potential coverage gaps and help clients secure broader protection.
When it comes to performing arts organizations, the real exposures often begin before the curtain rises and continue long after the final applause.
Quick Risk Assessment Questions:
- Do you transport instruments, props, costumes, or equipment?
- Do volunteers assist with operations?
- Do you offer classes or workshops?
- Does your board have D&O coverage?
- Do you operate year-round or only during performances?
