Resiliency Proper preparation against risk will deliver rave reviews for long- term resilience. The entertainment and sports industry is fraught with risks that can make or break an organization’s reputation and Case Study bottom line. Tough lessons from the past will motivate entertainment and sports companies to adopt a culture of When a music festival became overwhelmed safety, enhance risk management awareness and improve by the number of insurance brokers and planning. underwriters it worked with to procure proper Music festivals are particularly susceptible to unpredictable coverage, it turned to HUB to consolidate its risk and serve as cautionary tales for the entertainment risk management. Doing so allowed the music industry. In the past three decades, at least 175 people festival to identify holes in its risk profile, have died at concerts from deadly stampedes, riots, obtain better coverage options and improve 11 convective storms and shootings. its risk profile. And catastrophic weather, skilled labor shortages and “auxiliary” activities (non-sanctioned ventures outside a live event) result in additional risk and higher insurance premiums. Cancellation, contingency and non-appearance Carriers will continue to require comprehensive coverage rates will rise as much as 15% in some markets. information on evacuation strategies, crowd safety management, security protocols, ongoing training and There are likely to be higher limits for general liability background check systems. insurance to counterbalance the growth in scale and use of technology. As events expand and attract larger crowds, A formal enterprise risk management (ERM) process premium increases will vary by location and genre. Family will help mitigate risk and can result in lower insurance entertainment facilities with liquor liability could see rate premiums, but only 40% of entertainment and sports increases of 25%. respondents to the HUB survey reported having a formal ERM process. Partnering with an experienced broker can For sports operations, nuclear verdicts will continue to help jumpstart ERM efforts. diminish insurer capacity and demand strict underwriting guidelines for abuse and molestation insurance and coverage for concussion and brain-related injuries. 11. Newsweek, “Music Festival Chaos: Inside the Deadly Risks at Concerts,” June 24, 2024. Nuclear verdicts have resulted in reduced limits for umbrella and excess liability and made it more challenging to procure adequate coverage. For example, a venue that previously secured $50 million in excess liability coverage from a single insurer now needs to acquire policies from four or five carriers to reach that limit. 5