The Insurance Viewpoint for Entertainment and Live Events in 2022

Mar, 17 2022

Live Music Clubs and Venues Insurance

The Insurance Viewpoint for Entertainment and Live Events in 2022

Starting a nightclub or entertainment venue has been very challenging since the pandemic unfolded. At present, many more questions have been raised about the risks of attending public events. The concert industry suffered losses in the billions in both 2020 and 2021. Here's what you need to know for club and venues insurance in Austin, Texas.

The show will continue, but with adequate caution

The clubs and venues insurance you purchase should clearly state what it covers and what happens in case a show is canceled. It should clearly answer the following questions:

  • Do the artists, performers, and their management still get paid for securing the booking?
  • Will the insurance pay for lost revenue and wages?
  • If a show is not canceled, will the insurance cover healthy people who get COVID-19 at the venue?

To operate in the post-pandemic era, a venue needs to be prepared to protect patrons physically and financially from the threat of a contagious disease. That means workers must take proactive safety measures in how they interact with patrons.

Financially protecting yourself against the cancellation of an event will be difficult

The pandemic led to countless cancellations beginning from March 2020 and continuing through 2021. From an insurance perspective, it led to an upsurge in the cost of event cancellation coverage premiums. Commercial property insurance also ticked up during this time. These conditions have made it very difficult for new entertainment venues to enter the market.

Resourcefulness will be essential for organizing events in a creative field

Even though the pandemic has put venues to the test of business survival, there will always be a demand for creative entertainment. The challenge involves making indoor and outdoor venues and their parking lots safe for crowds. One of the most innovative ways venue owners have developed is to host live streaming shows online, complete with digital avatars of artists. That’s because virtual shows are less likely to be canceled. Organizations are also working to give the shows a concert feel instead of appearing like a steaming event.

It will still be difficult to create new revenue streams in the post-pandemic era, and labor shortages may add to the struggle. So it's important to map out an updated business plan that takes pandemic issues into account.

Requiring proof of vaccination may result in increased events

As the COVID-19 vaccine was rolled out in 2021, various entertainment venues began to reopen. The vaccination policy helped bring life back into the business, as 90 percent of festival-goers were vaccinated in Chicago and attended the annual outdoor Lollapalooza Festival. The event required proof of vaccination and was attended by 385,000 participants. Vaccination has become a new standard for public events, particularly for large stadiums.

Moving forward, venue owners will have to consider other issues that tie into the pandemic. It's unclear when the next pandemic or variants will arise, which could lead to further lockdowns, mask mandates, and social distancing.

Insurers of entertainment venues will have to rethink their policies as well. Even though the vaccine was initially effective at limiting the spread of the coronavirus, the effects wore off after several months, creating issues about vaccination status. It may take a while for insurance companies to rethink and respond to pandemic risks.

Have you asked yourself about clubs and venues insurance near you? Before launching an entertainment venue, make sure you have the right insurance in place to protect against potential losses. Contact us at Graystone Insurance Group to get started on the right insurance plan for your venue.