Political violence and terrorism (PVT) insurance has been purchasable for decades but is now under the spotlight after a string of violence has impacted music events since 2015. Lockton Companies is just one of the providers of PVT which is designed to offset financial losses caused by acts or threats of violence which may impact an event. While most touring artists purchase a policy to protect again illness, injury, or natural disaster, adding PVT is now coming highly recommended from artist representation like Dina LaPolt who represents Deadmau5 and Steven Tyler.
Traditional touring insurance costs an artist roughly 2% of the artist’s guaranteed pay. So, for example, if Armin Van Buuren is receiving $1 million for a tour, he would pay $20,000 in case he is unable to perform because for physical or environmental reasons. Adding PVT to the policy costs about an additional 0.5%, or in our example, $5,000. Policies will pay out about 80% ($800,000) of the artist’s guaranteed in the event of a claim.
Although no amount of financial compensation could make up for a tragedy like we witnessed in Las Vegas, the monetary impact to an artist can be significant. Outside of the music industry, other organizations, such as the NCAA, have sought political violence and terrorism insurance.
Source / Billboard