Entertainers present a unique challenge to U.S. disability carriers as their earnings history is often riddled with volatility, and they consistently present a compressed career that limits the time they earn the bulk of their income. Therefore, entertainers are a class that are eligible for disability insurance from the Excess Lines market. Many advisors, however, think of only the obvious candidates: actors, musicians, and directors that fit into the entertainer category. The exceptional advisor digs a little deeper and discovers there are several other candidates in the entertainment business that are underserved and uninsured. We'll discuss three groups from the entertainment space to remember as we head into the new year.
Writers and/or screenwriters are a group that advisors don't typically think of when prospecting entertainment clients. And many would argue that a great writer is essential to the success of a movie, TV show, web series, or even video game. An established film writer can earn between $2-$5 million per script.
An Executive Producer, another great candidate, sources and secures the financing for a film production and if that person suffers a disability, their future projects and income would be in jeopardy. A High Limit Disability policy through the Excess Lines Market can protect an Executive Producer's future income.
A third group in the entertainment space that is often overlooked for disability coverage are Broadway Stars. Many Hollywood A-list actors and actresses got their start on Broadway. With a disability policy in place, the Broadway Star (and Hollywood hopeful) can focus on their upcoming shows knowing they have a safety net should an unforeseen accident or illness occur and leave them disabled.
As you plan for 2023 and set goals, remember there are others in the entertainment space that are uninsured and don't qualify for coverage in the domestic market. A Lloyd's of London Coverholder can access extraordinary benefit limits for entertainers due to their relationship with Lloyd's capital providers.
Interested in learning more about how to break into the entertainment insurance space? Schedule a meeting with our business development team.