There are a number of reasons why a cover/tribute band would benefit from purchasing liability insurance, but perhaps the most compelling reason is because without this cover, the very livelihood of the musician/band is at stake in the event that they are sued. While no one plans on accidents, the chance of such incidents occurring increases at public places and venues where large numbers of people are gathered. When alcohol is consumed, the risk increases even more.
This type of insurance is designed to offer protection against third party (the public) bodily injury or property damage as a result of one’s operations or products.
The relevance to cover/tribute bands is that in the event that bands are held responsible for the injuries and property damage sustained by an audience member or staff member at the venue, the liability insurance would potentially pay for the medical treatment required by the injured party, and can cover settlement claims resulting from lawsuits.
An example of a scenario where a band’s liability policy would be of value include if a member of the audience was invited onto the stage while band members were performing and ended up tripping on loose cords and slamming their face into some audio equipment. The coverage afforded under a liability policy would protect the band (policy holder) in the event that they are then sued by any third parties for unintentional damage. A lawsuit can name a band, its manager, an establishment and its landlord in a lawsuit. Liability insurance protection will not shorten criminal sentences, but it will take care of the resulting injuries and rehabilitation and potentially legal costs as well.
While liability insurance should be in place by the owners of the venue where a band will be performing, more frequently the musicians themselves must have liability insurance in place in order to perform at a venue. A band can be sued for its own direct actions; however, other situations where a band and its members could be held liable include: if a piece of equipment drops from the stage and injures an audience member, or if someone were to trip over a microphone cord. In many cases, the owner of a venue requires that performers show proof of their own liability coverage so that their own liability insurance is covered in the event that the performers are negligent.
Pricing is based on revenue and annual premiums start at US/CAD $500 (subject to change) for $1M in coverage. Compare this to the potential costs arising from a lawsuit and the coverage is priceless.