An Advisors' Guide to Excess & Surplus Disability Insurance

How to Insure Hollywood Stars

Posted Tue, Mar, 12th, 2019
By Exceptional Risk Advisors
Traditional insurance carriers are typically well prepared with insurance and disability plans that fit the needs of most people. If you are a bank teller and become disabled and can’t work, having a disability income policy can help maintain your normal lifestyle.

What if you are a Hollywood A-lister making $15 million per film or $1 million per episode of a hit TV show and you become disabled due to an injury or illness? An entertainer’s unique ability to perform is their ticket to future income. Due to the nature of the entertainment business, domestic disability income protection markets will not insure those in the entertainment business.
Fortunately, there are alternative insurance solutions overseas in the Lloyd’s of London marketplace by way of a coverholder.  Simply put, a coverholder can access extraordinary benefit limits for entertainers due to their relationship with Lloyd’s capital providers.  The underwriting process for entertainers is not so different than from high income earning executives, entrepreneurs, lawyers, hedge fund managers, etc…  Both parties need to provide application, medicals and financials, however, an underwriter will research an entertainer’s work history, future projects announced or in production, and any ancillary income streams, i.e. a musician that also acts, when assessing the risk.  

To read about a real entertainer insurance scenario, download a copy of our latest case study.