For musicians and entertainers, live performances are not just about the thrill of the stage—they are crucial for income generation. According to Billboard's annual Money Makers report, the majority of a musician's earnings come from touring and live performances. In 2021, for instance, The Rolling Stones earned $44.5 million from touring, Harry Styles earned a cool $32.2 million, and the Eagles, $20.1 million. Taylor Swift, however, blew them all out of the water with her Eras Tour in 2023 and was set to earn $4.1 billion. 

When artists hit the road, there's a significant financial risk involved. On average, the cost for a major artist to tour can range anywhere from $500,000 to $1 million per week. Without specialized insurance, the financial fallout from a canceled show can be devastating. High-limit Contingency Coverage is designed to mitigate such losses when unavoidable events occur. A recent example is country music singer, Colt Ford, who had to cancel the rest of his summer tour due to a heart attack. Or when John Popper, the lead vocalist and frontman of the band, Blues Traveler, sustained a knee injury as a result of a tour bus crash and canceled the remainder of their 2021 tour dates.

Contingency Insurance, which covers non-appearance and event cancellation, is tailored to protect the policy owner if a show or series of shows is missed, postponed, abandoned, or rescheduled. Thanks to the capabilities of Lloyd's of London, this type of insurance offers extraordinary benefit limits to U.S. promoters through certified Lloyd's of London Coverholders.

This insurance is typically underwritten on a broad policy form that includes coverage for perils such as death, injury, or illness of one or more scheduled artists, venue destruction, adverse weather, unavoidable travel delays, and communicable diseases.

Recently, we assisted a popular singer and guitarist preparing for a nationwide tour. The client was concerned about losing the guaranteed income associated with each venue if some or all of the concerts couldn't take place. The potential income from the tour's guarantees, plus percentages advanced by promoters, exceeded $10 million. A cancellation due to adverse weather, an act of terror, a death in the performer’s immediate family, or the artist's death, illness, or injury could lead to significant financial loss for the client and their estate.

Download the U.S. Concert Tour Case Study

Concerts, sporting events, plays, trade shows, exhibitions, tours, and art expos all generate substantial revenue and require high capital investment. The significant profits from these events can be jeopardized by unavoidable circumstances, but solutions are available to mitigate these risks.

For more information on how to protect your live events and performances, contact Exceptional Risk Advisors. We specialize in creating customized insurance solutions to ensure that when the show must stop, your financial security doesn't.