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<i><b>When the Show Can't Go On</i></b> Seeking Insurance Recovery for Concert Cancellations
Concert tours can generate significant income for an artist. Yet every concert tour carries a risk that some event outside of the artist's control ' health issues, physical injuries, adverse weather or safety concerns, to name a few ' could force the cancellation of a single show or even an entire tour, thereby resulting in lost revenue to the artist and unrecoverable costs. To protect against this risk, many performance artists elect to obtain event cancellation and/or non-appearance insurance (which may be covered under the same or separate policies) prior to going on tour. This insurance coverage often covers financial losses, including lost guaranteed income, that result from cancellation of the event.
When a show or tour is cancelled because the artist is not able to perform, however, insurers may claim that the cancellation is not covered under the insurance policy for any number of reasons. Thus, holders of event cancellation policies should be aware of some basic tenets of insurance law to be better prepared to respond to an insurer's denial of coverage.
In recent years, the press has reported that numerous artists have been forced to take their insurance companies to court due to the insurers' unwillingness to pay after concerts were cancelled due to an artist's injury or illness. Many other instances exist, which do not get publicly reported, where insurers dispute an artist's claim for payment. Indeed, a performer can be sure that when a show is cancelled because the artist falls ill or suffers an injury, the insurers will make more than a cursory analysis of whether or not to pay the artist's claim or adjust it downward for a variety of reasons. Therefore, policyholders should be prepared to deal with a number of arguments from their insurers as to why the cancellation is not covered under the policy.
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