Talent Agency Insurance Policy Information
Talent Agency Insurance. Actors, models, musicians; as the owner and operator of a talent agency, you have an eye for incredible talent. Whether you scout out professionals for large organizations or for small independent companies, you are tasked with a pretty big responsibility.
You are both responsible for the people you are trying to help land a gig, as well as the businesses that you serve.
Talent agencies assist actors, actresses, models, musicians, stunt persons, production managers, and related film and stage employees in booking performing engagements and employment. The agency may specialize in a particular industry, such as representing talent for commercials, cruise ships, films, live theater, radio voice work, or television.
The agency acts as a go-between, negotiating fees and logistical issues such as audiovisual support and travel expenses. The agency keeps photos, promotional material, resumes, and records of past engagements. The agency is paid either by commission or by flat fee. The person seeking employment, the customer seeking the services of that person, and the theatrical agency must all fully understand the terms and conditions of the employment arrangement..
The contractual agreement should define who is obligated and responsible for providing workers compensation coverage, who pays the fee for the employment arrangement, who handles payment to the employee, and who accounts for taxes and other mandatory deductions. In some states, talent agents are required to be licensed.
As the proprietor of a talent agency, you face many of the same risks that business owners in all industries face; however, you also face risks that are unique to your particular industry. Regardless of the risks, as the owner and operator of your organization, you are liable for anything that goes wrong.
In the event that something unexpected does happen, the burden of responsibility falls on your shoulders. To protect yourself from unforeseen circumstances, having the right type of talent agency insurance coverage in place is imperative.
Why is talent agency insurance so important? What type of coverage do you need? Read on to find the answers to these questions and more so that you can ensure your business is properly protected.
Talent agency insurance protects your business from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked talent agency insurance questions:
- What Is Talent Agency Insurance?
- How Much Does Talent Agency Insurance Cost?
- Why Do Talent Agencies Need Insurance?
- What Type Of Insurance Do Talent Agencies Need?
- What Does Talent Agency Insurance Cover & Pay For?
What Is Talent Agency Insurance?
Talent agency insurance is a type of insurance coverage specifically designed for talent agencies that work with actors, musicians, models, and other performers. It provides protection for the agency against financial losses and legal liabilities that may arise from the representation and management of the talent.
Some common types of coverage include errors and omissions insurance, which protects against mistakes made by the agency, such as misrepresenting the talent, and general liability insurance, which covers costs associated with injuries or property damage that occur during the agency's operations. Additionally, the insurance may also include coverage for contract disputes and intellectual property disputes.
Having talent agency insurance is important as it helps to mitigate the financial and legal risks associated with the representation and management of talent, ensuring the continued success and stability of the agency.
How Much Does Talent Agency Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small atalent agencies ranges from $47 to $69 per month based on location, revenue, claims history and more.
Why Do Talent Agencies Need Insurance?
A piece of equipment falls and lands on an actor while he or she is trying out for a part. An electrical fire breaks out in our commercial space and quickly engulfs the entire building and the contents inside in flames. A client files a lawsuit against you, stating that you are responsible for damaging their property. An employee suffers a work-related injury.
These are just a few examples of the incidents that can affect your talent agency. While you take every measure to make sure that everything runs smoothly, sometimes you can't avoid the unexpected. If something does go wrong, you are financially responsible for the damages, as well as any legal action that someone may take against you.
The costs of repairing damaged property, medical bills, and legal representation can be exorbitant. That's why you need to have the right type of talent agency insurance coverage in place.
If you aren't properly insured, you'll end up having to foot the bill for any issues that may arise; costs that can lead to serious financial hardship and could potentially end up costing you your entire business. If you're insured, however, if something does go wrong, instead of paying these expenses out of your own pocket, your insurance carrier will cover them for you.
Additionally, having workers compensation is a legal requirement in most states, and other coverage are usually contractually required. If you aren't insured, you could end up being hit with stiff penalties and your entire operation could be shut down.
What Type Of Insurance Do Talent Agencies Need?
The specific type of talent agency insurance coverage that talent agencies should carry depends on a variety of factors; where your business is located and the size of your operation, just to name a few.
Regardless of the specifics of your business, there are a few types of coverage that all talent agencies should have in place. Examples include:
Having said that, the following are examples of coverage that most talent agencies will need to carry:
- Commercial General Liability: To protect yourself from third-party liability claims, you'll need to have commercial general liability insurance. If a client or a vendor suffers an injury on your property or claims that you damaged their property and files a lawsuit against you, this type of coverage will cover the cost of your legal representation, as well as any expenses that a court finds you liable for.
- Commercial Property: This coverage protects the physical structure of your talent agency, as well as the contents it contains. If a fire were to break out and damage your building, costumes, office equipment, and employee property, this coverage would cover the costs or repairing the damage or replacing items that can't be repaired.
- Business Interruption: Should your talent agency need to shut down for a prolonged period of time - while you recover from a fire, for example - this policy will compensate you for any wages that you may lose while you are closed for business.
- Workers' Compensation: To protect your employees, you'll need this policy to pay for any medical care your staff may need if they suffer a work-related injury and to compensate them for lost wages.
These are just a few examples of the talent agency insurance policies that talent agencies should consider to protect their operations.
Talent Agencies' Risks & Exposures
Premises liability exposure is minimal because much of the operation occurs via phone. Customer and visitor access is light. Areas accessible to the public must be well lighted with floor covering in good condition. Exits must be sufficient in number, be well marked, and have backup lighting in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.
Personal injury exposures may arise if confidentiality is breached when obtaining and releasing information regarding workers and employees.
Errors and omissions exposure can result from the commitments and bookings made should errors occur in dates and arrangements, or from misrepresentation of a worker's abilities. Hazards increase without proper contractual wording specifying the exact date, time, place, and other arrangements for services purchased.
Workers compensation exposure usually is limited to that of an office. Potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be reduced through ergonomically designed workstations. Personal contact with the performers may involve situations that could produce injuries, such as assault.
If workers are leased or rented out, the exposure increases as the agency has little control over the worker's work premises or hazards.
The employment contract should specify whether the agency or the client provide workers compensation coverage.
Property exposures are generally limited to that of an office. Ignition sources include electrical wiring, heating, and air conditioning systems, wear, and overheating of equipment. Computers and automation equipment may be targets for theft.
Crime exposure is from employee dishonesty since the agency usually handles billing and related paperwork for performers. Hazards increase without proper background checks, monitoring procedures, and securing of all records to prevent unauthorized access. All job duties, such as ordering, billing and disbursing should be separate and reconciled on a regular basis. Audits should be performed at least annually.
Inland marine exposures include accounts receivable if the agency offers credit, computers, and valuable papers and records for client companies' and performers' information. Duplicates should be made and kept in an off-site backup facility for easy reproduction following a loss.
Commercial auto exposure may be limited to hired and non-owned. The exposure increases if the agency offers shuttles for temporary assignments, transport to job interviews, or if employees use their own vehicles for agency business. If vehicles are provided to employees, there should be written procedures regarding personal use by employees and their family members.
All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained, and records kept in a central location.
What Does Talent Agency Insurance Cover & Pay For?
Talent agencies can be sued for a variety of reasons, including breach of contract, discrimination, negligence, defamation, and breach of fiduciary duty. Insurance can protect talent agencies from financial losses that may arise as a result of these lawsuits. Here are some examples of how insurance can help pay for the lawsuit in each scenario:
Breach of contract: Talent agencies can be sued if they breach a contract with a client or a third party. For example, if an agency fails to secure a job for a client that was promised in the contract, the client may sue for breach of contract. Insurance policies such as Errors and Omissions (E&O) coverage can help cover the legal fees and any damages awarded to the plaintiff.
Discrimination: Talent agencies can be sued for discrimination based on factors such as race, gender, age, or disability. If an agency is found liable for discrimination, it may be required to pay damages to the plaintiff. Employment Practices Liability Insurance (EPLI) can help cover the cost of defending against discrimination claims and paying any settlements or judgments.
Negligence: Talent agencies have a duty of care to their clients and may be sued for negligence if they fail to fulfill this duty. For example, if an agency fails to provide adequate security at an event where a client is performing and the client is injured, the agency may be sued for negligence. General Liability Insurance can help cover the legal costs and any damages awarded to the plaintiff.
Defamation: Talent agencies can be sued for defamation if they make false or harmful statements about a client or a third party. For example, if an agent makes derogatory remarks about a client on social media, the client may sue for defamation. E&O coverage can help cover the legal fees and any damages awarded to the plaintiff.
Breach of fiduciary duty: Talent agencies have a fiduciary duty to act in the best interests of their clients. If an agency fails to do so, it may be sued for breach of fiduciary duty. E&O coverage can help cover the legal costs and any damages awarded to the plaintiff.
Overall, insurance can be an important tool for talent agencies to protect themselves against lawsuits and financial losses. It is important for talent agencies to work with an insurance broker who understands their industry and can help them choose the right insurance policies to meet their needs.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7819 Services Allied to Motion Picture Production, 7922 Theatrical Producers (Except Motion Picture) and Miscellaneous
- NAICS CODE: 711410 Agents and Managers for Artists, Athletes, Entertainers, and Other Public Figures, 531311 Employment Placement Services
- Suggested Workers Compensation Code(s): 8810 Clerical Office Employees NOC, 9156 Theater NOC - Players, Entertainers, or Musicians
Description for 7819: Services Allied to Motion Picture Production
Division I: Services | Major Group 78: Motion Pictures | Industry Group 781: Motion Picture Production And Allied Services
7819 Services Allied to Motion Picture Production: Establishments primarily engaged in performing services independent of motion picture production, but allied thereto, such as motion picture film processing, editing, and titling; casting bureaus; wardrobe and studio property rental; television tape services; motion picture and video tape reproduction; and stock footage film libraries.
- Casting bureaus, motion picture
- Developing and printing of commercial motion picture film
- Directors, motion picture: independent
- Editing of motion picture film
- Film libraries, stock footage
- Film processing, motion picture
- Laboratories, motion picture
- Motion picture consultants
- Motion picture reproduction
- Rental of motion picture equipment
- Studio property rental for motion picture film production
- Television tape services (e.g., editing and transfers)
- Titling of motion picture film
- Video tape or disk reproduction
- Wardrobe rental for motion picture film production
Description for 7922: Theatrical Producers (Except Motion Picture) and Miscellaneous
Division I: Services | Major Group 79: Amusement And Recreation Services | Industry Group 792: Theatrical Producers (except Motion Picture)
7922 Theatrical Producers (Except Motion Picture) and Miscellaneous: Establishments primarily engaged in providing live theatrical presentations, such as road companies and summer theaters. This industry also includes services allied with theatrical presentations, such as casting agencies; booking agencies for plays, artists, and concerts; scenery, lighting, and other equipment services; and theatrical ticket agencies. Also included in this industry are producers of live and taped radio programs and commercials and producers of live television programs. Establishments primarily engaged in the production of taped television programs and commercials are classified in Industry 7812. Theaters which are normally rented to theatrical producers and stock companies are classified in Real Estate, Industry 6512. Motion picture theaters and motion picture service industries are classified in Major Group 78. Establishments primarily engaged in operating dinner theaters are classified in Retail Trade, Industry 5812.
- Agents or managers for entertainers
- Agents, talent: theatrical
- Ballet production
- Booking agencies, theatrical: except motion picture
- Burlesque companies
- Casting agencies, theatrical: except motion picture
- Community theater productions
- Concert management service
- Costume design, theatrical
- Employment agencies: theatrical, radio, and television-except motion
- Legitimate theater producers
- Opera companies
- Performing arts center productions
- Plays (road companies and stock companies)
- Radio programs, including commercials: producers of
- Rental of theatrical scenery
- Repertory or stock companies, theatrical
- Road companies, theatrical
- Scenery design, theatrical
- Stock companies, theatrical
- Summer theaters, except dinner theaters
- Television programs (including commercials): live
- Theatrical companies
- Theatrical equipment rental
- Theatrical lighting on a contract basis
- Theatrical production, except motion picture
- Theatrical ticket agencies
- Vaudeville companies
Talent Agency Insurance - The Bottom Line
To find out more about the specific types of talent agency insurance policies you'll need, how much coverage your business should carry - speak with a reputable commercial insurance broker.
Additional Resources For Arts & Recreation Insurance
Read up on small business arts and recreation commercial insurance.
- Amusement Parks
- Archery Ranges
- Athletic Fields
- Billiard And Pool Halls
- Bowling Alleys
- Cave Tours
- Dance Studio
- Disc Jockey DJ
- Drive-In Theaters
- Entertainers And Performers
- Event Planning
- Fairs And Fairgrounds
- Film Production
- Fine Art
- Guides & Outfitters
- Handball & Racquetball Courts
- Horse & Dog Racetracks
- Indoor Sports Complexes
- Interior Decorator
- Interior Design
- Motorsports Racetracks
- Photo Booth
- Recording Studio
- Recreation Centers
- Riding Stables
- Roller Sakting Rinks
- Shooting Ranges
- Skeet & Trap Shooting Ranges
- Ski Resorts
- Talent Agency
- Tennis Centers
- Video Arcades
- Wedding And Special Event
- Specialty Arts And Antiques
- Specialty Clubs And Leisure Time Activities
- Specialty Entertainment
The arts and recreation industry is a vital part of our society and culture, providing entertainment and enjoyment for people of all ages. However, as with any business, there are inherent risks and potential liabilities that can arise. This is where insurance comes into play.
One of the main reasons the arts and recreation industry needs insurance is to protect against financial losses due to accidents or injuries. For example, if a performer is injured while rehearsing or performing, their medical bills and lost wages could be significant. Without insurance, the cost of these expenses could potentially bankrupt a small arts organization.
In addition to protecting against accidents and injuries, business insurance can also cover damages or losses due to weather events, natural disasters, and other unexpected circumstances. For example, if a theater is forced to cancel a performance due to a power outage or extreme weather, insurance can help cover lost income and expenses.
Another important aspect of commercial insurance for the arts and recreation industry is liability coverage. This type of insurance can protect against legal claims and lawsuits if someone is injured or becomes ill while attending an event or using facilities. For example, if a patron slips and falls at a theater, they may file a lawsuit against the venue for damages. Liability insurance can help cover the costs of legal fees and any settlement or judgement.
Overall, the arts and recreation industry needs insurance to protect against financial losses and legal liabilities that can arise in the course of business. Without commercial insurance, small arts organizations and recreational facilities could be vulnerable to financial ruin in the face of unexpected events or accidents.
Minimum recommended small business insurance coverage: Business Income with Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Commercial Articles Floater, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Bailees Customers Floater, Money and Securities, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.