Frank Zuccarello, Partner at Exceptional Risk Advisors, oversees the specialty insurance high limit placements of the biggest money-making concert tours and entertainment events in the industry. He provides an update on the Lloyd's entertainment market: the impact of COVID-19, who are the successful producers in this space and how advisors can break into this market.
First off, he addresses the 800 pound gorilla in the room: COVID-19. There are two factors that have impacted the entertainment market, according to Mr. Zuccarello, high limit disability insurance for entertainers and contingency coverage, aka event cancellation insurance.
Due to the nature and volatility of the entertainment business, traditional US disability markets will not insure those in the entertainment industry. Therefore, advisors turn to the Excess & Surplus Lines Market for unique insurance solutions for their A-list celebrity clients. An entertainers ability to earn an income is their greatest asset. Since March 2020, successful advisors have found an opportunity to open (or re-open) the conversation with their entertainer clients to ask: "What happens if you can't perform?". Luckily there are insurance products and remedies that can help your client navigate through life when something unexpected might occur.
Concerts, sporting events, plays, trade shows, exhibitions, tours, and art expos all generate large amounts of revenue and require a high capital input. Contingency coverage, or event cancellation, accessible in the Excess & Surplus Lines market, took a large financial hit by COVID-19. Per Mr. Zuccarello's update, coverage for communicable diseases (such as COVID-19) are currently not included. However, as the world slowly starts to re-open and events are planned, protection against adverse weather, death or disability of key person at events and venue damage are all real risks that can be insured.
Next, Mr. Zuccarello speaks of who we he sees finding success in this space. In a nut shell, it's sophisticated LIFE producers who have access to the best business managers in New York City, Los Angeles, Nashville and all across the country. These business managers have relationships with the top lawyers and CPAs in the country who have clients with a need for personal income protection, aka, disability insurance.
Mr. Zuccarello ends by sharing four crucial tips for advisors wanting to break into this market: 1) find and talk with your centers of influence; 2) seek out lawyers, CPAs or business managers; 3) know what's available for those in the entertainment business; and 4) ask us for help!