Insurers Breath A Sigh Of Relief After Jackson Verdict

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( — October 14, 2013) Brisbane, QLD — Insurers were expecting to receive claims of up to $US500 million from Anschutz Entertainment Group Live ‘AEG Live’ had Michael Jackson’s family been successful in their lawsuit against the tour promoter over his 2009 death.


The Jacksons wanted AEG Live to pay $US85 million ($A90.9 million) to each of the star’s three children for emotional loss, and an unspecified amount for economic losses, estimated at up to $US1 billion ($A1.067 billion).


Tim Kelly of RGIB Insurance Broking said “Insurers have already paid out more than $US50 million to refund tickets and losses of deposits paid to venues and service providers booked for the Michael Jackson concerts, so a hit to the market of that magnitude might have led to an increase in ticket prices worldwide”.


Special Event insurance is dominated by Lloyds of London with annual premiums of expected to reach $US1 billion ($A1.067 billion) by the end of 2013.


Pre sales of tickets months ahead of a tour puts the tour promoter at risk if something goes wrong and the tour can’t proceed. With huge infrastructure costs paid in advance, the tour promoter rarely has sufficient funds left to refund tickets hence their reliance on insurance.

Some bands are notorious for their unreliability whereas the Rolling Stones have never failed to play a concert in their almost 50 years of performing but, as one international underwriter recently quipped at an RGIB conference on special event insurance, “Mr Jagger isn’t getting any younger, something has to give”.


One of the busiest artists in the world Andre Rieu takes a massive entourage of leading performance artists with him all over the world which presents a unique set of risks for insurance underwriters; especially in circumstances where a concert is held outdoors and subject to the whims of whether.


Pluvious insurance (rain insurance) is one of the oldest forms of cover for the entertainment industry; and with open air concerts planned for the summer months anything can go wrong and spectacularly so.


According to statistics Michael Jackson’s death has been a wake up call for tour operators with the number of operators seeking special event insurance more than doubling since 2009.

RGIB Insurance Broking is one of Australasia’s leading insurance brokers for special events handling everything from local tours to international concert events. Tim Kelly says’ “the trend is to ensure policies cover ‘consequential losses’ in case something pops up down the track like it has in the Jackson matter.


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