Joplin is prepared in the event of terrorism




Terrorism has led to countless lives lost, a human toll that can never be replaced. But it also destroys buildings, wipes out electronic data, and leaves a permanent mark on how we live our lives.

Police take the potential threat for terrorism very seriously, but it doesn’t stop there. That’s something Steve Stockam has seen every day on the job since the Twin Towers were attacked in 2001.

Steve Stockam, Joplin Apt. Mgr: “We probably spend more time and effort and money on safety and security now than obviously ever before.”

The Joplin Airport Manager will never forget how his job changed on 9/11.

Steve Stockam, Joplin Apt. Mgr: “Those terrorists gained access to the system through smaller airports.”

There are TSA screenings for passengers, but that’s just one small part of the security plan for federal agents.

Steve Stockam, Joplin Apt. Mgr: “Perimeter roads , perimeter fencing or remote gates. Others may come in and look at access within the building itself.”

And then there is the insurance coverage, just in case something happens. It applies nationwide to more than 450 commercial airports in America, a complicated web involving insurance companies and the federal government.

Scott Brothers, Insurance Ctr: “after 9/11 it was determined by the insurance industry that they could not cover terrorism. So the government came in with a backstop for insurance companies for terrorism.”

And Scott Brothers with Insurance Center adds it’s not just airports.

Scott Brothers, Insurance Ctr: “Larger policies like municipalities, large property risks like schools, hospitals, places like that where terrorism may occur.”

It’s not automatic; there are exclusions, buybacks and a $100 billion dollar threshold. Brothers says not many of his bigger clients opt in, maybe just one in ten.

Scott Brothers, Insurance Ctr: “Quite frankly the typical reaction most of the time around here is ‘I don’t need to worry about terrorism, do I?’ they ask me, and I say ‘I don’t know.'”

It’s a serious question when you have nearly $43 million of property to collect. No, it’s not the City of Joplin, but Carl Junction.

Steve Lawver, CJ City Admin: “Every piece of property that we have whether it’s a shelter at the park, whether it’s a community center, or the PD, or punlic works, any of that along with the vehicles.”

CJ has an extensive insurance policy, it’s $133,000 per year, but it doesn’t specifically address terrorism. Different components touch on liability, even riots and cyber coverage.

Steve Lawver, CJ City Admin: “We have things in place to work against that.”

But while buying in to terrorism insurance may not be automatic, preventing the potential act itself is.

JPD Asst. Chief Sloan Rowland: “We are preparing for it. We’ve been preparing for it for years.” 

Seen in that increased police presence at large scale events like parades an concerts and through more subtle methods.

JPD Asst. Chief Sloan Rowland: “Response tactics and things that we do really don’t want out just so terrorists don’t know how we respond to different things.”

It’s not to say terrorism wil ever strike the Four States. But in the rare chance it does, police, city leaders and even insurance agents want to be ready.

Scalability critical to developing substantial terrorism market – GC@BB Commentary

c-gibbs-20-smjamie-russell-final-smCharles Gibbs, Managing Director and Jamie Russell, Vice President

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  • Capacity a major limiting factor in expanding remit
  • Small number of players raising aggregation risk
  • Cover not reaching organizations that need it most

Restricted capacity, limited modelling capabilities and a lack of demand from smaller organizations are severely hampering the industry’s ability to generate a substantial terrorism market, according to Charles Gibbs, Managing Director, and Jamie Russell, Vice President, Guy Carpenter.

“There has been a major shift in the focus of terror attacks towards mass casualty and fear-inducing events, and away from physical damage,” explains Gibbs. “Yet, terrorism pools are built primarily to address catastrophic damage, while the private market is also geared towards managing this increasingly frequent but minor component of the loss.”

“We are, however, seeing the emergence of more relevant coverage, designed to address non-physical damage-related losses such as loss of attraction, denial of access and active assailant and shooter,” Russell explains. “The issue is more that capacity is limited, and while the threat potential is growing, terrorism remains a specialist market. The challenge is not so much the diversity of cover, but rather the scalability and distribution.”

This limited scale is creating a market imbalance, adds Gibbs, with the sector heavily weighted towards larger-scale corporations, rather than smaller businesses that could benefit most from terrorism cover.

“Limited capacity is driving a much greater market focus on corporates simply because they can generate a better premium return. We must work out how to expand the terrorism insurance remit to companies that lack the financial ballast to ride out the shorter-term,” he says.

Yet, for this to happen, the market has to evolve beyond its specialty origins, or run the accumulation gauntlet. “The small number of players offering terrorism cover significantly heightens the potential for accumulation risk if efforts were made to push cover into the wider market,” Gibbs continues. “At present, there simply isn’t the incentive to extend out to the SME sector.”

Restricted modelling capabilities on the terrorism front remain a stumbling block to this evolution. “The models are limited by a lack of claims data especially for the more diverse covers now on offer,” Russell says. “Development in this area will aid insurers with their portfolio management and unless this is addressed, coupled with modelling capabilities that can support improved frequency analysis, insurers will continue to be restricted in how far they can extend their insurance offering.”

Market expansion is also hindered by a lack of demand. “To extend current modelling capabilities will require extensive R&D investment,” Gibbs believes. “To make that investment to scale-up the terrorism offering will require audible customer demand.  At present, we are not hearing the calls for cover, as many either do not sufficiently understand the threat, or do not consider themselves exposed to the peril.”

“If we are to create a substantial terrorism market,” he concludes, “we must create the modelling acumen to support the industry’s efforts to shift from a reactive, opportunistic approach to providing cover, to a more proactive one that extends beyond the larger corporates, while also working to raise awareness of the perils to stimulate appetite at the SME level.”

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A Terrorism Insurance Salesman Explains Why America’s Artists Are So Frightened

Jason Aldean performs onstage at Nissan Stadium on June 9th, 2016, in Nashville, Tennessee.

Jason Aldean performs onstage at Nissan Stadium on June 9th, 2016, in Nashville, Tennessee.

Deadly attacks have turned concert venues in Paris, Manchester, and Las Vegas into grisly battlefields. America’s latest mass shooting, which took place during a performance by country star Jason Aldean, took 59 lives, terrified concert-goers and re-opened the debate over gun control in Congress. In the process, these tragedies have shaken up a pivotal industry: the market for terrorism insurance.

Performers have always opted to insure their acts in case of cancellation. But now artists from Britney Spears to Orange Is the New Black showrunner Jenji Kohan are putting an extra 0.25 to 1 percent of their profits toward terrorism and political violence coverage, which pays an artist for shows canceled specifically in the event of a threat or attack.

John Tomlinson directs the Entertainment Group for Lockton Companies, the world’s largest privately held insurance brokerage. His company insures more than 100 of the entertainment industry’s biggest hip-hop, rock, pop, and EDM acts—and three out of four of them have terrorism insurance. Pacific Standard spoke to Tomlinson to learn why that number is rising.

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Terrorism Insurance in Demand for Concerts Following Las Vegas Attack

A string of deadly attacks at music events — including the Oct. 1 mass shooting in Las Vegas at the Route 91 Harvest festival — is pushing artists to invest in something most didn’t think they needed: terrorism insurance.

“Now more than ever they are targets,” says Steves Rodriguez, business manager for Fifth Harmony.

Political violence and terrorism (PVT) insurance policies have been available for decades, but they have been a tough sell unless artists are touring in volatile regions like South America or Eastern Europe. But after the killing of 58 concertgoers in Las Vegas that took place while Jason Aldean was onstage; the bombing outside Ariana Grande’s show in Manchester, England, in May; and the 2015 attack on the Bataclan nightclub in Paris, reps are now advising talent to buy the coverage no matter where they tour.

“Not everybody believes it’s necessary,” says Bill Tannenbaum, a business manager who specializes in representing touring artists. “I’m pretty vocal about taking it with my clients, and luckily we had it with Ariana Grande.” The singer canceled multiple stops on her tour after the attack before returning to Manchester for a benefit concert.

Standard nonperformance insurance costs about 2 percent of the artist’s guarantee and pays a claim (usually about 80 percent of appearance fees) if shows are canceled for reasons like illness, injury or natural disaster. A PVT add-on costs about an extra half-percent.

“It’s usually a battle with the artist to buy it,” says attorney Dina LaPolt, who represents Britney Spears and Steven Tyler. “If you get paid a million dollars, all of your tour costs come out of that million. So every penny counts.”

Even the threat of an attack can trigger a claim. “The way [policies had] been written previously is, the threat had to be related to the venue,” says John Tomlinson, who leads the entertainment group of Lockton Cos., the world’s largest privately held insurance brokerage. “We have expanded that language to include threats made to bandmembers,” he says. Policies might also cover a show that is impacted by an attack within a certain time or distance, say within a week of the event or within 50 miles of the venue.

LaPolt says she also tries to add terrorism into the force majeure provision in appearance contracts. That way, in the event of an attack, both the artist and the tour promoter’s obligations are negated, preventing a breach of contract lawsuit.

While no one could truly prepare for a tragedy like the one in Las Vegas, LaPolt says recent attacks have made terrorism insurance more common. “If it’s a big tour and you’re a high-profile artist and you gather tens of thousands of people per show, you have to have it,” she says.

Nor is the need exclusive to musicians: Other live events, like NCAA tournaments and trade shows, are buying coverage. And Orange Is the New Black showrunner Jenji Kohan told THR recently that she took out terrorism insurance on her office building because she expects a show she’s developing about a teenage Jesus to be controversial.

“You’re always going to do something that someone doesn’t like,” said Kohan. “And you don’t know how crazy that someone is going to be.”

This story first appeared in the Oct. 18 issue of The Hollywood Reporter magazine. To receive the magazine, click here to subscribe.

More Concerts Investing in Terrorism Insurance After Vegas Shooting, Hurricanes and Fires Force Couples to Find Alternate Wedding Venues, Pole-Dancing May Become an Olympic Sport


1. MORE CONCERTS INVESTING IN TERRORISM INSURANCE AFTER VEGAS SHOOTING: Recent terrorist attacks at music events such as the Route 91 Harvest festival in Las Vegas is driving more artists to invest in terrorism insurance at concerts. Billboard: “Political violence and terrorism (PVT) insurance policies have been available for decades, but they have been a tough sell unless artists are touring in volatile regions like South America or Eastern Europe. But after the killing of 58 concertgoers in Las Vegas that took place while Jason Aldean was onstage; the bombing outside Ariana Grande’s show in Manchester, England, in May; and the 2015 attack on the Bataclan nightclub in Paris, reps are now advising talent to buy the coverage no matter where they tour. ‘Not everybody believes it’s necessary,’ says Bill Tannenbaum, a business manager who specializes in representing touring artists. ‘I’m pretty vocal about taking it with my clients, and luckily we had it with Ariana Grande.’ The singer canceled multiple stops on her tour after the attack before returning to Manchester for a benefit concert. … Even the threat of an attack can trigger a claim. ‘The way [policies had] been written previously is, the threat had to be related to the venue,’ says John Tomlinson, who leads the entertainment group of Lockton Cos., the world’s largest privately held insurance brokerage. ‘We have expanded that language to include threats made to bandmembers,’ he says. Policies might also cover a show that is impacted by an attack within a certain time or distance, say within a week of the event or within 50 miles of the venue.” http://bit.ly/2yzEKrK


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2. HURRICANES AND FIRES FORCE COUPLES TO FIND ALTERNATE WEDDING VENUES: The aftermath of disasters like the California wildfires and numerous hurricanes has forced many couples to quickly find alternate wedding venues. The New York Times: “As Hurricane Harvey swirled closer to the Texas coast at the end of August, Mr. Siegfried, a 40-year-old program director for Hearst, and his fiancé, a 43-year-old personal trainer and group fitness instructor for the Y.M.C.A., grew uneasy. From their Sugar Land hotel room the day before the wedding, they watched as airlines canceled flights and weather predictions grew dire.‘We didn’t have time to get upset — we just went into attack mode,’ Mr. Siegfried said. He worked on securing space for the wedding at a Brazilian restaurant they had considered for the rehearsal dinner, which had a large enough space to accommodate guests already in town. Mr. Stockbridge bought up the roses, gladiolas and any other pink or purple flower he could find at the grocery store, mobbed with people buying canned food and water. A friend hunted down a two-tiered wedding cake. And by five o’clock, with Mr. Stockbridge’s sister officiating, they were exchanging vows, toasting their marriage and dancing the flash mob before 49 guests, as the first gusts of wind and rain arrived. Extensive damage caused by Hurricanes Irma and Maria, which devastated several islands in the Caribbean, has forced numerous brides and grooms to rethink their weddings that were scheduled into the winter months. Some resorts on the islands of Anguilla, St. Barth’s, St. Maarten and St. Thomas will remain closed through December, maybe later, to complete repairs. ‘Even the couples who think of everything can’t prepare for this level of stress,’ said Joann Gregoli, a New York-based destination weddings planner who started a Facebook page called Hurricane Irma Crashed My Wedding to help brides and grooms replan their big day at no charge.” http://nyti.ms/2yAxk9s

3. POLE-DANCING MAY BECOME AN OLYMPIC SPORT: Pole-dancing may become an Olympic event in the future, after it was provisionally by the Global Association of International Sports Federation earlier this month. Washington Post: “Observer status is the first step international federations must achieve before becoming full GAISF members, which serves as a great boost for any sport hoping to one day land in the Olympics. And that is exactly pole-dancing’s goal, according to International Pole Sports Federation President Katie Coates, who lauded the day the decision was made on Oct. 2 as ‘historical.’ … The road to the Olympics isn’t short, however. Along with a recognized governing body, prospective sports must also gain separate recognition from the International Olympic Committee. Provisional IOC recognition lasts three years, during which committee members decide whether to give it full recognition. If successful, the sport’s governing body still needs to then petition to become an official Olympic sport, which can take several more years. For Coates, however, those obstacles do not sound insurmountable, considering the uphill battle she said she faced while campaigning to gain provisional recognition from the GAISF. Today, pole-dancing competitions are as family-friendly as any sporting event—and just as well regulated. The IPSF outlines its rules, judging and other criteria in its 137-page document, that lays out guidelines for several categories of competition, ranging from youth to mixed doubles to para-competition. Pole dancers are even required to take doping tests to ensure the sport is clean.” http://wapo.st/2yVCJct

* LOCAL NEWS *

ATLANTA:  The eighth annual Country Living Fair will take place October 27-29 at Stone Mountain Park. 

BOSTON:  Mija Cantina & Tequila Bar will host a Día De Los Muertos celebration on October 27. 

CHICAGO:  Jackson Chance Foundation, a nonprofit that gives parents of hospitalized children free parking passes through its N.I.C.U Transportation Program, will host its fifth annual Playing It Forward Ping Pong Ball benefit on November 9 at Hard Rock Hotel Chicago. 

LOS ANGELES:  Los Angeles Times food critic Jonathan Gold will celebrate his annual 101 Best Restaurants list on October 23 at the MacArthur. 

For information on upcoming events in Los Angeles, visit Masterplanner: http://www.masterplanneronline.com/losangeles

MIAMI/SOUTH FLORIDA:  Celebrity Cruises will be the presenting sponsor of Miami Beach Gay Pride 2018, which will take place April 2-8. 

NEW YORK:  The Horny Ram will host its first-ever Halloween cocktail contest on October 25. Along with the competition, the invite-only event for media will offer light bites, Halloween-theme cocktails, and a live cocktail demonstration from Cody Goldstein of Muddling Memories. 

Little Kids Rock, a nonprofit dedicated to restoring, expanding, and innovating music education in public schools, raised $1.3 million at its annual benefit, which took place October 18 at the PlayStation Theater. 

For information on upcoming events in New York, visit Masterplanner: http://www.masterplanneronline.com/newyork

ORLANDO/CENTRAL FLORIDA:  Hard Rock Hotel Daytona Beach has named Kevin Hines as general manager of the new oceanfront property that is scheduled to open by the end of 2017. The hotel will have 200 rooms and 20,000 square feet of indoor and outdoor meeting space. 

TORONTO:  The Toronto Public Library Foundation’s fifth annual Hush Hush fund-raiser, an event hosted by the foundation’s under-45 members program New Collections, will take place Saturday at the Bloor/Gladstone branch. The event theme is inspired by Canadian landscapes. 

YOUR NEWS: What are you doing? Tell us: tips@bizbash.com. 

JOB BOARD: Post a job or find a job: http://jobs.bizbash.com

With contributions from Claire Hoffman in Los Angeles, Mitra Sorrells in Orlando, and Beth Kormanik, Michele Laufik, Jill Menze, Rayna Katz, and Ian Zelaya in New York.

BizBash Daily is the must-read digest of event industry news from BizBash.com.

Feed the Sheet: tips@bizbash.com

Subscribe: www.bizbash.com/bizbashdaily

Advertise with BizBash: d_wilkes@bizbash.com

 

Is Terrorism Risk Coverage Necessary?

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RIMS report notes attack factors including season of the year and geographic region.


The United States is no stranger to acts of terrorism. In recent years, domestic and international events have increased with alarming frequency. More importantly, such events have shown that no area of life is completely risk-free.

Domestically, notable acts of terrorism have occurred on school campuses like Virginia Tech or Sandy Hook Elementary School. Just this month, Las Vegas experienced the deadliest mass shooting in modern U.S. history. 

Concern over terrorism risk is clear and definite, but information and understanding of terrorism risk insurance is not as well known. Not-for-profit organization RIMS tackles this subject in its latest report, Terrorism Insurance: Understanding the Boundaries of Coverage for a Risk Without Borders.


Guidance for risk managers

The report provides corporate risk managers, insurance brokers and coverage counsel with guidance on determining whether terrorism risk insurance coverage is necessary, identifying terrorism risk solutions that exist in the market and insights on negotiating for terrorism coverage. 

“With terrorism risk being an unfortunate reality, corporate risk managers and counsel can take proactive measures to contain a risk that otherwise knows no bounds,” said the author of the report, Micah Skidmore of Haynes and Boone. 

Related: Terrorism and political violence call for review of insurance strategy


Terrorism 2

Terrorism risk is seasonal, with most attacks occurring during the spring and summer months. (Photo: Shutterstock)

Is terrorism risk insurance coverage necessary? 

Terrorism risk can be quantified and, to some extent, understood by its relationship to a variety of constantly evolving factors. Historically, domestic terrorism represented a disproportionate risk to property, relative to bodily harm, spread over numerous smaller incidents. 

Most attacks occur on a seasonal basis, especially during the spring and summer months. The report also notes there is a greater likelihood of terrorist attacks in the Northeastern region of the U.S. and the coastal states like California and Texas.

Although property damage and bodily injury are the primary risks associated with terrorism, there are other dimensions companies should consider if they’re looking to minimize their exposure, such as:

  • Fiduciary liability for corporate directors and officers,
  • Pollution loss and liability,
  • Professional (E&O) liability,
  • Employment practices liability,
  • Business interruption loss, and
  • Privacy and network security liability.

Even when a company does not independently recognize terrorism risk sufficient to justify an insurance solution, some form of terrorism coverage may nonetheless be required by contract — including lending agreements.


Riots

Traditional policies, including commercial general liability and property policies, may provide some coverage for terrorism risk if not expressly excluded. (Photo: Shutterstock)

What insurance solutions are available to address terrorism risk?

What terrorism insurance solutions are available to corporate risk managers? A significant market capacity exists for domestic terrorism coverage in two different forms: traditional first- and third-party policies, and so-called stand-alone terrorism risk insurance. Traditional policies, including commercial general liability and property policies, may provide some coverage for terrorism risk if not expressly excluded. 

Workers’ compensation insurance — a state-regulated line of coverage compulsory in nearly every state — is another traditional policy that may provide some form of terrorism coverage. Unlike other property & casualty policies, workers’ compensation policies do not have terrorism (or war) exclusions.

To the extent that terrorism risk is excluded or unavailable under traditional policies, a corporate policyholder may consider purchasing stand-alone terrorism insurance. Stand-alone terrorism policies, however, provide a wide a variety of terms — some offering broad coverage, others very little. 

They also typically exclude political risks, including loss resulting from strikes, riots, civil commotion, rebellion, revolution, war and insurrection. Cyber-related loss and liability, as well as nuclear, biological, chemical and radiological hazards such as anthrax, are also commonly excluded. 

Related: Protests, riots, and loss of business income


Terrorism

In a large-scale terrorism event, disputes have developed and may continue to arise over what qualifies as a separate “occurrence.” (Photo: Shutterstock)

What should corporate policyholders look for in placing stand-alone terrorism coverage?

If a stand-alone terrorism policy is the preferred method of addressing terrorism risk, selecting the policy with the best terms involves more than just ensuring that coverage extends beyond “certified acts of terrorism.” Brokers and policyholders should carefully review the valuation terms in stand-alone terrorism policies to ensure that such terms appropriately compensate the insureds for loss and damage, even when actual repair or replacement may not be possible or optimal. 

In a large-scale terrorism event, disputes have developed and may continue to arise over what qualifies as a separate “occurrence,” justifying either the application of separate limits or the accrual of a separate deductible or retention. To avoid such controversy and afford a measure of certainty to policyholders and insurers alike, some considerations should be given to including specific terms defining what constitutes an “occurrence” and how the number of occurrences associated with a given claim will be determined. 

Related: Insurance implications of war, domestic terrorism and nuclear threats


Terrorism 5

The “act of terrorism” may, directly or indirectly, prompt a release of hazardous substances. (Photo: Shutterstock)

What other policy terms justify special consideration in a terrorism risk insurance policy?

  • Expediting expense: The costs incurred to sustain operations or expedite repairs in the wake of a terrorism incident may vary substantially from any other casualty loss. Expansion of insuring terms beyond “reasonable and necessary” costs to include items such as security or healthcare-related expense may be appropriate.
  • Increased cost of construction: A terrorism incident may itself prompt legislative or other practical requirements that have the effect of increasing the cost of demolition and compliant repair. 
  • Pollution exclusion: The “act of terrorism” may, directly or indirectly, prompt a release of hazardous substances, which increases the cost of the claim. Policies should not exclude the cost associated with a release of “pollutants” that is an indirect result of an otherwise covered “act of terrorism.”
  • Sue and labor: What is reasonable to protect, recover or save insured property after a general casualty loss may be very different from what is appropriate following as an act of terrorism. To avoid disputes, language in “sue and labor” provisions should be tailored accordingly. 

Terrorism risk insurance, whether through traditional or stand-alone policies, is an increasingly important element of domestic corporate insurance programs. To that end, risk managers, agents, brokers and corporate counsel should review corporate exposure to risk, existing policies and contracts to determine whether terrorism risk insurance is necessary to protect the business or fulfill contractual obligations. 

Related: Interest in travel insurance terrorism coverage on the rise

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Originally published on PropertyCasualty360. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

More Artists Are Investing in Terrorism Insurance Following Las Vegas Massacre

As terrorism attacks at large-scale music events have unfortunately become more of a tangible threat, artists are beginning to rely on terrorism insurance for their events, according to a new report in The Hollywood Reporter. Just in the past two years, the mass shooting in Las Vegas at the Route 91 Harvest Music Festival, the bombing at Ariana Grande’s show in Manchester, England, and the attack on the Bataclan nightclub in Paris in 2015 have taken innocent lives of people. “Now more than ever they are targets,” says Steves Rodriguez, business manager for Fifth Harmony.

Terrorism insurance has not always been a major concern for artists and their teams. But such policies, known as political violence and terrorism (PVT) insurance policies are becoming more commonplace as artists take their tours to bigger arenas and more cities around the world. In reality, nothing could prepare either the artists, their band, their managers, or concertgoers for the terror of an attack and its repercussions, but insurance policies can help the artist’s bottom line and are therefore becoming much more popular.

“If it’s a big tour and you’re a high-profile artist and you gather tens of thousands of people per show, you have to have it,” says attorney Dina LaPolt, who represents Britney Spears and Steven Tyler.

Even the way the policies are written has been evolving thanks to the increased threat levels. “The way [policies had] been written previously is, the threat had to be related to the venue,” said John Tomlinson, who leads the entertainment group of Lockton Cos., the world’s largest privately held insurance brokerage. “We have expanded that language to include threats made to bandmembers.” Other policies might even include attacks made within days or miles from the concert venue itself.

“Not everybody believes it’s necessary,” Bill Tannenbaum, a business manager who specializes in representing touring artists, told THR. “I’m pretty vocal about taking it with my clients, and luckily we had it with Ariana Grande.”

With that said, it’s not always a straightforward decision. “It’s usually a battle with the artist to buy it,” LaPolt explains. “If you get paid a million dollars, all of your tour costs come out of that million. So every penny counts.”

And it’s not just concerts. Other large-scale live events like NCAA tournaments or trade shows are covered by terrorism insurance. Even those who anticipate a strong backlash to their work, even if it’s mostly behind-the-scenes work and not at live events, are looking to get covered. Jenji Kohan, the creator of Orange Is the New Black, told THR that she has had her office building insured against terrorism because the new show she is working on is about a teenage Jesus and she expects it to be controversial.

“You’re always going to do something that someone doesn’t like,” Kohan said. “And you don’t know how crazy that someone is going to be.”

Las Vegas attack is driving demand for terror insurance for concerts

Las Vegas attack is driving demand for terror insurance for concerts
Due to the recent string of deadly attacks at music events – most recently the shooting that occurred in Las Vegas – more artists are now considering the need for terrorism insurance.

Although political violence and terrorism insurance policies have been around for some time already, they are not usually purchased unless an artist is touring volatile parts of the world, such as South America or Eastern Europe.

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However, recent attacks staged near or within these music events – the Las Vegas shooting, the bombing outside Ariana Grande’s concert in Manchester, England, and the 2015 Bataclan nightclub attack in Paris – have since led representatives to advise celebrities to secure the insurance.

“Not everybody believes it’s necessary,” business manager Bill Tannenbaum told Hollywood Reporter. “I’m pretty vocal about taking it with my clients, and luckily we had it with Ariana Grande.”

Typical nonperformance insurance policies cost roughly 2% of the artist’s guarantee. The policies pay for claims on canceled events and as much as 80% of appearance fees for reasons such as illness, injury, or natural disaster. It would cost about an extra half-percent to add political violence and terrorism insurance.

“It’s usually a battle with the artist to buy it,” stated Dina LaPolt, an attorney who represents Britney Spears and Steven Tyler. “If you get paid a million dollars, all of your tour costs come out of that million. So every penny counts.”

Notably, artists can even file a claim at the mere threat of an attack.

“The way [policies had] been written previously is, the threat had to be related to the venue,” explained John Tomlinson, SVP, head of entertainment at privately held insurance brokerage Lockton Companies. “We have expanded that language to include threats made to bandmembers.”

LaPolt argued that as long as there remains a risk of another attack during a large music event, terrorism insurance is a must.

“If it’s a big tour and you’re a high-profile artist and you gather tens of thousands of people per show, you have to have it,” she said.

Related stories:
Insuring festivals? This is what you need
Ironshore sheds light on trials and trends of terrorism risk insurance
 

Musicians investing in terrorism insurance following Vegas attack

There’s been a high demand for terrorism insurance in the wake of the Las Vegas massacre — with artists from all music genres reportedly looking to invest in policies for their concerts.

“Now more than ever they are targets,” explained Steves Rodriguez, business manager for the all-girl pop group, Fifth Harmony.

Speaking to The Hollywood Reporter this week, he and other managers described how musicians were taking out terrorism insurance policies now — more than ever before — following the deadly mass shooting at the Route 91 Harvest festival on Oct. 1.

“Not everybody believes it’s necessary,” said business manager Bill Tannenbaum, who specializes in representing touring artists.

“I’m pretty vocal about taking it with my clients, and luckily we had it with Ariana Grande.”

The “Into You” singer was forced to cancel multiple stops on her world tour back in May after a suicide bomber blew himself up at the Manchester Arena where she was performing. Twenty-two people were killed in the attack and hundreds more injured.

The incident, coupled with the Vegas massacre and similar terror strikes — such as the Bataclan nightclub in Paris during an Eagles of Death Metal concert — has ultimately prompted artists to buy the insurance policies, which up until now, have been viewed by many as being too expensive.

“It’s usually a battle with the artist to buy it,” said Dina LaPolt, lawyer for singers Britney Spears and Steven Tyler.

“If you get paid a million dollars, all of your tour costs come out of that million,” she said. “So every penny counts.”

While standard nonperformance insurance policies typically cost about 2 percent of the artist’s guarantee — and pay a claim of around 80 percent of appearance fees if a concert is canceled — a political violence and terrorism policy will usually run them an extra half-percent more, THR reports.

Once a musician purchases the PVT insurance, they will be able to obtain their claim in the event that an unexpected crisis arises, or if there’s even the threat of an attack.

“The way [policies had] been written previously is, the threat had to be related to the venue,” explained John Tomlinson, head of the world’s largest privately owned, independent insurance brokerage firm, Lockton Companies.

“We have expanded that language to include threats made to bandmembers.”

In addition, terrorism insurance policies may also cover a concert or show that is affected by an attack or threat that takes place around the same time or within a 50-mile radius of the venue.

“If it’s a big tour and you’re a high-profile artist and you gather tens of thousands of people per show, you have to have it,” LaPolt said.

“Orange Is the New Black” creator Jenji Kohan, who recently took out a terror policy on her office building, added: “You’re always going to do something that someone doesn’t like…And you don’t know how crazy that someone is going to be.”

After Las Vegas Attack, Some Artists Are Considering ‘Terrorism Insurance’

The hot new thing on the concert circuit? Terror insurance.

In the wake of attacks on the Bataclan theater in Paris, the Manchester Arena and, earlier this month, an outdoor Las Vegas music festival. artist managers and lawyers insist that their clients will increasingly seek to be indemnified agianst terrorism.

“If it’s a big tour and you’re a high-profile artist and you gather tens of thousands of people per show, you have to have it,” attorney Dina LaPolt, who represents the likes of Britney Spears and Steven Tyler, told the Hollywood Reporter

Bill Tannenbaum, a business manager who represents Ariana Grande, said the singer “luckily” had purchased terrorism insurance before the suicide bombing at her May concert in Manchester, which killed 22 people. In its aftermath, Grande canceled subsequent shows in London, Belgium, Poland and Germany.

Terrorism insurance has been around for decades, but most artists didn’t think to buy it unless they were performing in a particularly “volatile region.” In the past, these “volatile regions” didn’t typically include the United States. 

As artists weigh the threat they — and their fans — face just by stepping on stage, companies like MGM Resorts International, which owns the Las Vegas Mandalay Bay Resort and Casino, have considered whether they should purchase “active shooter insurance.” After the Las Vegas shooter, from his perch on the 32nd floor, MGM’s share price plummeted. 

“Any one single incident is a tragedy. But compare that to the number of possibilities, the millions of events that could occur,” University of Connecticut School of Law professor Peter Kochenburger told Newsweek on Friday. “If you could sell shark bite insurance, you could probably make a lot of money.”

What Kochenburger suggests is that insurance companies peddling active shooter or terrorism insurance policies could easily capitalize on fear without ever having to pay out any claims. Mass shootings continue to rise in their severity, but they aren’t rising in frequency. 

Still, there’s no telling how many artists could succumb to their fears of mass shootings, which a recent study shows four in 10 Americans share. Terrorism insurance brokers are even changing their policies to accommodate artists and the potential threat levels they face.

“The way [policies had] been written previously is, the threat had to be related to the venue,” John Tomlinson, who heads Lockton Cos., an insurance brokerage, told the Reporter. “We have expanded that language to include threats made to bandmembers.”