“Insurance for designers / technicians is probably one of the most confusing, mysterious, and under-informed areas of this work.” - Carl Faber, Portland-based lighting designer.
The Artistic Finance podcast has published a panel discussion covering liability insurance for lighting designers and live event workers. The panel consisted of Austin-based lighting designer Bill Rios, Luna Lux LLC CEO Phill Powers, and New York City-based lighting designer Ethan Steimel. They discussed the different types of insurance available, annual pricing and coverage limits, and how union contracts affect insurance coverage.
Lighting production company Luna Lux LLC holds several different policies for various entertainment work. Powers explained the common types including general liability, excess liability, umbrella, auto liability, errors and omissions, and inland marine. That seems like comprehensive coverage, yes there were several other policies mentioned too. Those additional policies included workers' compensation, key person, inland marine, property, professional, and accidental death and dismemberment (AD & D) which is often linked to workers’ compensation insurance. Powers emphasized the importance of liability insurance for those working in live events and production, given the inherent risks involved in such work.
Rios explained that union contracts can affect insurance coverage for lighting designers. The important distinction is that a USA 829 contract stipulates that the producer is responsible to provide liability insurance for the designer. Other productions hiring designers on a non-union contract may require that designer to be a 1099 contractor and have a liability policy that matches that of the production. The workaround here can be that the designer could take on the project as a W2 employee of that production so they are covered by the production. If not, the designer must be sure not to do any of the work that the production crew should do, as they are not covered under that production’s insurance coverage.
Ethan Steimel pulled answers from the Artistic Finance Insurance Survey which had responses from twenty eight lighting designers in the USA and the UK. The survey found that while some lighting designers are not carrying liability insurance, it is required for some cruise ship projects, many venues, and some theater companies. Those clients often require $3-5 million in coverage, and expect the lighting design company to match their policy with a Certificate of Insurance (COI). When asked why they held insurance, nearly all the respondents said it was because a client or venue required it.
At the end of the discussion, Steimel pointed out that liability insurance is not cost-prohibitive. It does not take a large amount of money to get short term coverage or even a small annual policy. It gives you peace of mind, and provides benefits if you do need to make a claim.
Respondents to the survey claimed they had trouble finding an insurance company that would cover live event workers. Power’s recommendation was to seek out referrals from colleagues in the industry. Steimel recommended taking a look at the survey results. He compiled links to insurance companies that provide coverage for live event lighting companies. That is available in the show notes for the episode or below this article.
The conclusion of the discussion was that insurance coverage is a good idea and is available regardless of how large or small your company is. From a single freelancer to a multi-million-dollar company, there are policies available. Often, those policies can even come from a provider you already use for auto or home insurance.
No one on the panel is a financial expert. Seek professional advice as you decide what type of insurance coverage is right for your lighting and production needs.
To access the survey results, click here.
To watch the discussion, click here.