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Rock ‘n Roll Risk Management�

Cameron Smith, Senior Vice President – Entertainment Industry Solutions

Win Williams, Senior Vice President – Risk Services

Risk & Insurance | Employee Benefits | Retirement & Private Wealth

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Hi, we’re HUB.

In a rapidly changing world, we advise businesses and individuals on how to prepare for the unexpected.

When you partner with us, you’re at the center of a vast network of experts who will help you reach your goals through risk services, claims management and compliance support.

And this gives you the peace of mind that what matters most to you will be protected — through unrelenting advocacy and tailored insurance solutions that put you in control.

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HUB Int’l Fast Facts

HIGHLIGHTS

FOOTPRINT

530+

locations in North America

2MM+

clients

$30B+

in premium

19%

annual growth

Top 5 �global broker based on revenue

15,000+�employees

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HUB Entertainment provides coverage for:

2,010	Film, TV, Radio & New Media
3,050	Sports and Recreation
2,730	Concert & Performing Arts

Premium by Segment

Client Count

Film, TV & New Media

Studios, independent production companies, digital media companies

Business Management

Commercial, Personal, Executive Liability and Health insurance for Entertainers

Theatre & Performing Arts

Broadway productions, Off-Broadway tours, Dance/Theatrical productions, Perf Arts Centers

Video Games

Developers, Publishers, eSports companies

Sports

Personal, Health and other coverages for pro athletes, coaches and pre-draft college athletes

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…and the Concert Industry

Concert Venues

Clubs every size, ballrooms, theatres, black boxes, outdoor amphitheaters

Festivals

From one-off special events to the largest music festivals in the world. Food festivals, dance festivals, yoga festivals, rock festivals, block parties.

Vendors and Support Companies

Concessions, security, staging/lighting/sound, video production, beer/liquor vendors, production management consultants

Concert Promoters

Every size, genre

Touring Artists

Every coverage a band on the road could need

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Understanding your Venue Insurance Needs

Industry Experience

Director, Indy Jazz Fest (1998-2000), then Talent Buyer (2001-2003)
Talent Buyer, SFX/Clear Channel/Live Nation (2000-2005)
Assistant Director, University of Texas at Austin Performing Arts Center (2005-2011)
Adjunct Professor, Music Business, University of Texas at Austin (2007-2013)
Producer/Booker of 5-Day/40 Band party during SXSW since 2010
Insurance for the Touring Industry since 2011

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Of the 100+ people working in our Entertainment practice, there’s an incredible amount of experience in the space.

And in my case, my experience extends beyond insurance to what I now insure.

Prior to getting into insurance in 2011, I spent the previous 14 years in the promoter world.

Along wiith the City of Indianapolis, I created and directed what at the time, was a $2 million jazz fest, (with just about every idea stolen from New Orleans Jazz Fest). We drew over 60,000 people our first year. In our second year, in 2000, running without event cancellation coverage.....we had 6 inches of rain, record cold and dangerous storms the first day, resulting in a cancellation and a $750,000 loss. I understand the importance of event cancellation coverage.

I then booked talent for what became Live Nation in Indiana clubs, ballrooms, theatres, arenas, festivals and amphitheatres for 5 years.

From there I moved to Austin where I helped run the Performing Arts Center at UT and taught a music business overview course for 7 years.

I also still book and host a 5-day 35-band party in Austin during SXSW, at Lucy’s Fried Chicken....now in our 9^th year

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Coverages for the CONCERT INDUSTRY

Building, Contents, Tenant Betterments, Business Income, Crime, Owned & Rented Equipment, Flood & Earthquake

Property

General Liability, Liquor Liability, Business Auto, Workers Compensation, Umbrella, Employment Practices Liability, D&O, E&O, Cyber & Privacy, Intellectual Property,

Commercial Liability

Event Cancellation & Non-Appearance

Contingency & Other

Group Medical, Dental, Vision, Life, Short-Term Disability, Long-Term Disability

Benefits

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We write the same insurance products for concert entities as brokers would for any other industry, but there are certain nuances and endorsements that require a specialist to navigate.

You can see all the basic property and casualty coverages in these first two rows...

Cancellation and Non Appearance.... These are specialty coverages that a generalist broker is just not going to have experience or knowledge of.....but that I deal with every day.

Primarily taken out by festival producer, Event Cancellation coverage is for anything that makes the event either unsafe or impossible to stage. Weather is probably 95% of these instances, but it can also cover things like terrorist threats, or something like a chemical spill near the event site. In addition to outright cancellation, these policies also cover financial loss due to delays, postponements, etc...as well as the extra expense that might be needed to move an event or bring in supplies to make it safe to open.

Non-Appearance is coverage for either a performer or an event promoter/producer to cover the financial loss that could occur if a performer cancels for a covered reason, like illness, travel delays, etc....

And of course we do Group Health Benefits as well, for companies small and large.

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Risk Management for VENUES

Transferring Risk

Looking at the contracts you sign to make sure you are not taking on someone else’s risk
When you sign a lease, a co-promotion agreement, a sponsorship deal, a vendor agreement etc.....the wrong insurance and indemnification language can tie you to additional liability you shouldn’t be

Loss Control

You can also look to your broker for input operational suggestions, site and building plans, and training to mitigate risk

Claims Management

Your claim history to a large degree, determines your insurability and your premium
Your broker is your advocate with the carrier, especially when it comes to claims

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HUB leverages a massive book of business with all of the primary entertainment carriers

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HUB Venue & Festival Clients

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Station Nightclub Fire 20 Years Later

Case Study

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Risk & Insurance | Employee Benefits | Retirement & Private Wealth

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The Scenario – February 20, 2003

Station Nightclub in West Warwick, Rhode Island – originally a gin mill and occupied by and renovated by restaurants/taverns over the years
West Warwick, a small insulated community in central Rhode Island
Great White 80’s band (Once Bitten Twice Shy) scheduled to play February 20, 2003
Big night in the small town - about 450 in attendance

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But then things went wrong…

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Horribly wrong…

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Tragically 100 lives lost

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Multiple Points of Failure

Overcrowding – Shoulder to shoulder crowd
Dubious maximum capacity calculations
Blocked or hidden exits (security prohibited access to stage exit)
Flammable foam
Pyrotechnics – No permits secured, homemade gerbs or flashpots

“Pyrotechnics and marginal economics can sometimes intersect in dangerous ways”

No sprinklers – no fire extinguishers handy
No emergency action plan
Multiple inspections by fire department and insurance companies failed to identify hazard
Employees not trained for emergency situations
Profits over safety

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Key Learnings and Next Step

Develop an Emergency Action Plan for all anticipated hazards – fire, medical emergencies, severe weather, armed intruder
Communicate the plan – train employees on exit, emergency procedures, fire extinguishers, evacuation routes, etc.
Establish communication strategy to communicate with patrons if there is an emergency (voice of God)

Double check occupancy calculations are accurate. These could change based on set up of seats/tables
Conduct frequent hazard inspections (at least monthly or prior to events)
Ensure emergency egress and exits are free from obstruction and not locked
Pyro – ensure safe to use, licensed operators, and secure proper permits

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Hopefully when people see what happens when negligence and greed overcome considerations of safety it will make us all change our personal and business lives just a little bit so we cannot have another Station Nightclub fire. �

John Barylick

Attorney for Station Fire victims

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QUESTIONS?

Advocacy - Tailored Insurance Solutions - Peace of Mind

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Cameron Smith

Senior Vice President

Entertainment Industry Solutions

HUB International Insurance Services Inc.

Office/Mobile: 512-587-8891

Cameron.Smith@hubinternational.com

HUB International Insurance Services Inc.

6701 Center Drive West #1500

Los Angeles,CA 90045

Office/Mobile: 512-587-8891

Thank you.

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