Entertainment Company Insurance
An entertainment company is an umbrella term for various businesses serving target audiences with diverse purposes. This can include anything from video games, television, music, and film. The entertainment industry is a booming market with an estimated £72 billion in revenue, proving just how profitable starting a business in this sector can be.
However, this remarkable income is only sustainable with strategic planning and intelligent use of money, which is where insurance comes in; having a comprehensive cover can protect your business from claims which could harm the profit. If you would like to read more information or learn more about the pricing of business insurance, you can do so here.
Types of Entertainment Company Insurance
As each entertainment company provides different services, it is not beneficial to have one type of insurance; it would be too expensive for smaller businesses and not extensive enough for bigger ones. As a result, there are a few covers which any entertainment business can benefit from, ranging in the level of coverage so that the company can choose whichever they need.
Professional Indemnity Insurance
Professional indemnity insurance is essential, as it provides cover against negligence, mistakes, bad advice and libel and slander. For example, if a music video producer fails to sync the sound with the video, and consequently, the final product looks messy, the singer would lose a lot of money because it is of a low standard. Therefore, the intended audience would not want to watch it. With professional indemnity insurance, the insurance company would recompensate the singer and those involved for their financial loss. The music video producer would not have to do so out of pocket.
Similarly, if a film production company gave lousy advice regarding budgeting and this caused reckless spending and not enough money left to cover all areas, the third party, the client, could file a lawsuit for negligence. Depending on the level of cover in the policy, most of these legal fees would be covered.
Public Liability Insurance
Public liability insurance will help you if, for example, a customer is injured due to the services provided by the entertainment company (whether it be in the office or at their own home), the legal fees associated with fighting this claim and the medical expenses, or price for replacing the damaged belongings would be provided in a payout by the insurer.
This could be anything from tripping over a cable in the office to falling down the stairs, or even if an employee was visiting a client in their house and unintentionally knocked into the computer, breaking it. Overall, because these incidents occurred due to the entertainment company, they are held liable to recover the costs; with insurance, however, the insurer covers this.
Business Equipment and Tools Insurance
Business equipment and tools insurance can be helpful because most sectors of the entertainment industry, mainly those that work with technology the most, require expensive, modern and the finest tools to provide their services. For example, video game producers use powerful computers with lots of storage, specialist software for editing and consoles. On the other hand, a magazine company would need high-resolution cameras, fast printers and other manufacturing equipment.
Business equipment insurance varies in cover, but usually, only the most expensive tools should be insured to bring down the monthly premium. This cover is encouraged because the company would not operate if the equipment were destroyed in a fire or stolen. This would lead to either a loss in revenue because it is closed or because lots of money would be spent on replacing it.
Employers’ Liability Insurance
Employers’ liability insurance for entertainment companies is legally necessary because employees are hired in the United Kingdom. Generally, production companies require researchers, producers, sound techs, marketers, costume designers, and other niche workers who work together to finish the end goal. The more employees a business hires or, the bigger the company, the riskier it is for an insurance company to insure them as the payout would be higher.
This type of cover is designed to aid the employees if they are hurt or injured at work, whether tripping in the building or directly tied to work, like needing an ear consultation appointment if the speakers or headphones explode. Not only are the medical expenses paid for, but any lost income for the period they are unable to work is provided.
To Conclude:
In conclusion, even though each entertainment company is different to the next, there are a few covers which each one would find advantageous. Whether they protect the client or the customer, there is protection against financial loss either way.
Find out more about the importance of insurance here.
Other useful links about Business Insurance:
Beauty Insurance
Designer Insurance
All You Need to Know About Dog Breeder Insurance
Remember to Compare Your Business Costs is here to help your business every step of the way from business advice, or saving you time and money on your business purchases such as:
Ally Cox is a dedicated Copywriter and Blogger for CompareYourBusinessCosts.co.uk. In under two years, the platform achieved the esteemed accolade of ‘Website of the Year’. Since its award-winning debut, Ally has been instrumental in fostering organic growth for the website, expanding its offerings to encompass comparisons across a diverse range of over 20 products to help serve all your business needs.