[Dixielandjazz] Public Liability

[tom wood]

Public Liability

Hi All,

I think I may have been the one to originally start this thread some 10
years ago.  However since the more recent lawyers litigation and ‘class
action’ millionaire cases insurance premium for most of us have almost
reached resistance level.  In fact from Australia obtaining worldwide PI
insurance cover normally requires excluding visits to USA.  Where brokers
include USA I have been quoted a five figure premium.  A local broker
advised me that for well known groups and rock stars to visit USA the
insurance premiums are sometimes 6 & 7 figures!

We are playing at a jazz festival in the open this Sunday at Kiama (about
100 kms. south of Sydney) and I had to renew our Public Liability Policy. 
The figure quoted was $1500 plus 10% Goods & Services Tax (i.e. $1650) for
the 12 month period i.e. double what we had been paying previously.  The
band was not very happy and although legally bound under contract to play
with a certificate of currency for Public Liability so I approached the
organisers with our dilemma.  The organisers solved the problem immediately
supplying the band with 24 hour cover for the Sunday event.  Their cost to
our band was $110 including GST.  The boys were delighted with the reduced
cost.  This underwriting covered for $5 million property damage plus Public
Liability for the whole band (which could include guest players) with an
excess of $250 on any claim. 

I think the efficient and smart way to keep everyone happy, organisers and
musicians alike with full cover is for organisers to obtain blanket cover
for their event period and if they have to, charge each band a portion of
the premium.  This will normally be far cheaper but one has to weigh up the
cost of gigs per annum requiring PI cover as to whether cover per insured
event is cheaper.  I would be interested to have any comments from others
on this matter.

The Sydney Zenith will have played overseas 13 times after our visit later
this year to the Edinburgh International Jazz Festival.  We have never once
been asked to produce any proof of PI cover and only had the cheaper local
Australian cover because the worldwide cover was too expensive.  We have
had to have tax clearance saying our expenses equated to our gig money but
never any PI requirements.

Maybe we can visit USA again in 2007 on the East Coast this time and soak
up some of Barbone Street’s  New York area gigs if we can get exemption
from PI insurance.
 
Cheers,
Tom (cannot publish litigatious SZ Tales of Taverns book) Wood 
Sydney Zenith Band Manager/Pianist
www.sydneyzenith.com