Play­ing along

Mu­si­cal in­stru­ments are ex­pen­sive. Any par­ent with kids study­ing the piano or vi­o­lin will quickly at­test to that. Add in the cost of am­pli­fiers, stands and mi­cro­phones for those stu­dents who ac­tu­ally make it to play­ing a real gig, and the num­bers climb re

RISKSA Magazine - - CONTENTS - Luka Vracar

In Au­gust of last year, South African chart­top­ping band ISO had a trailer packed with over R100 000 worth of mu­si­cal and stage equip­ment stolen from a ‘ se­cure’ park­ing lot at one of the coun­try’s lead­ing mu­sic fes­ti­vals, Op­pikoppi. How­ever, as is usual for bands play­ing at events like this, none of the in­stru­ments and equip­ment within the trailer were in­sured. The month prior to the in­ci­dent, another renowned South African band, Mr Cat & The Jackal, had their tour van bro­ken into as it was parked out­side the home of one of its mem­bers af­ter they had re­turned from a tour. Within two min­utes, the band had their en­tire in­ven­tory of mu­si­cal in­stru­ments stolen. No in­stru­ments also means no in­come. Both of these bands achieve rel­a­tive suc­cess in the South African mu­sic in­dus­try, re­ceiv­ing reg­u­lar airplay on na­tional ra­dio sta­tions. ISO is a con­stant favourite on com­mer­cial ra­dio sta­tions like 5FM, have been on a ten arena tour in Ger­many, and are reg­u­lar headliners at lo­cal mu­sic fes­ti­vals. How­ever, in a de­vel­op­ing South African mu­sic in­dus­try, pop­u­lar­ity does

not trans­pose to high in­come. On the con­trary, Richard Bro­ken­sha of ISO em­pha­sises that af­ford­abil­ity is one of the rea­sons his in­stru­ments were not cov­ered; lack of aware­ness of in­sur­ance prod­ucts be­ing the other. “As mu­si­cians we strug­gle to make any ex­tra profit for things like in­sur­ance, even though this is such an im­por­tant thing to have as a tour­ing band,” admits Bro­ken­sha. “I am not aware of a spe­cific in­sur­ance pol­icy that is tar­geted to­wards mu­si­cians or equip­ment. I sup­pose there are poli­cies that sound and ef­fects com­pa­nies use, be­cause their gear goes into the mil­lions,” adds Bro­ken­sha. There is clearly a gap in the mar­ket for an as­tute in­surer will­ing to ed­u­cate this coun­try’s grow­ing live mu­sic pro­po­nents. Heck, maybe one of our read­ers is even a frus­trated rock star who has stum­bled into an in­sur­ance ca­reer by ac­ci­dent, and who would be well placed to de­sign pur­pose- built poli­cies for this mar­ket.

Short- term

In­sur­ance providers like KEU and REISSA, do pro­vide spe­cial­ist in­sur­ance cover for the entertainment in­dus­try. This in­cludes cover for events, the film in­dus­try, and all- risk cover for equip­ment. Cover is spe­cialised and tai­lored to each client and sit­u­a­tion, de­pend­ing on their needs and the value of the equip­ment. Chummy Munks, man­ager of un­der­writ­ing at KEU, in­di­cates that for their all- risk equip­ment in­sur­ance pol­icy, the film in­dus­try is sig­nif­i­cantly their largest clien­tele. How­ever, per­form­ing artists such as mu­si­cians and DJs need to be made aware that they can also cover their equip­ment un­der these poli­cies. “We can pro­vide cover for tour bands and DJs, the film in­dus­try, stage con­struc­tion and event host­ing. What­ever equip­ment they have, they need to take out an an­nual equip­ment all- risk pol­icy, and that will cover all of the equip­ment they have. Equip­ment may in­clude any­thing from a gen­er­a­tor to light­ing. What­ever they have, we will cover it,” says Munks. “The all- risk equip­ment pol­icy is an an­nual pol­icy that can be paid monthly. There is a dif­fer­ence be­tween some of the in­sur­ers who bring you a pure monthly pol­icy, which means that it is tech­ni­cally a new pol­icy ev­ery month – so each time you pay your pre­mium you buy your pol­icy for the month. We give you an an­nual pol­icy, and you get fi­nanced by one of the fi­nance houses like Ful­crum or Epic. They then pay us the pre­mium in full and col­lect it from the client on a monthly ba­sis,” adds Munks. Even if mu­si­cians wish to take their equip­ment over­seas, they can be ad­vised that their all- risk equip­ment pol­icy will al­low them to use their in­stru­ments abroad. How­ever, bro­kers need to in­form their clients that even though the cover is world­wide, in­sur­ers may ob­ject to cer­tain coun­tries and this should be dis­cussed be­fore­hand, in case it leads to ex­clu­sion. “There are a few ex­clu­sions, ob­vi­ously. We are very strict about theft from unat­tended ve­hi­cles. You can­not just leave a thing on the seat of the car and leave, be­cause it will be stolen,” says Munks. Other spe­cific ex­cep­tions in­clude dam­age as a re­sult of clean­ing or sim­i­lar pro­cesses; pre­ex­ist­ing dam­age or wear and tear; con­fis­ca­tion by au­thor­i­ties; me­chan­i­cal prob­lems, or de­liv­ery chal­lenges.

Se­cu­rity & safety

Theft is the big­gest risk when mu­si­cal, film, or any other equip­ment that is usu­ally used at an event is con­cerned. In the case of ISO, their equip­ment was stolen from a se­cure car park when their trailer was stolen. How­ever, a se­cure car park is not al­ways se­cure. Un­der the KEU all- risk equip­ment in­sur­ance, ISO would have been cov­ered. “The prob­lem with se­cu­rity and se­cu­rity com­pa­nies is that they are some of the low­est paid in­di­vid­u­als in the coun­try. Of­ten guards don’t work overnight, they do not have

weapons, and they are not prop­erly trained. So it is im­por­tant that what they are guard­ing is cov­ered,” warns Munks. Clients need to pro­vide all the in­for­ma­tion of their tour or event to their in­surer be­fore­hand. Equip­ment in­sur­ers look at each case individually, and they will be glad to cover a client if they are aware of the risks. Bro­kers, there­fore, need to in­form their clients ex­actly what the pa­ram­e­ters of the equip­ment in­sur­ance pol­icy are. “Ac­ci­den­tal dam­age hap­pens; a client can drop a cam­era and that is not a prob­lem. There is a stan­dard ex­cess for all ma­te­ri­als dam­aged by rain, or mo­tor ac­ci­dent, and ev­ery­thing else, but if it is from ac­ci­den­tal dam­aged by the client caused him­self, or if it is stolen, there is a higher ex­cess. The stan­dard ex­cess is 10 per cent of the claim, whereas the higher ex­cess is 20 per cent of the claim,” ex­plains Munks So it pays to be care­ful and, ac­cord­ing to Munks, clients usu­ally are. It is not sur­pris­ing since gear like cam­era equip­ment and mu­si­cal in­stru­ments are usu­ally very ex­pen­sive. For a lot of mu­si­cians in­stru­ments are in­vest­ments; ei­ther they are more ex­pen­sive than their owner can ac­tu­ally af­ford, are rare, or they might be cus­tom made. Of the in­stru­ments that Mr Cat & The Jackal had stolen, one was newly- im­ported Greek bouzouki and the other an au­to­harp. In cases such as these, the items can­not be eas­ily re­placed. “We are cur­rently in­sur­ing the Cape Town Orches­tra that is go­ing over­seas to tour Europe. If some­body has a vi­o­lin worth R120 000, that vi­o­lin is im­por­tant to them; it is some­thing they bought and have been play­ing, and they re­ally look af­ter that in­stru­ment be­cause it is their life. You can’t just buy another vi­o­lin that will play like that, so we will insure it for them,” says Munks Af­ford­abil­ity “We are one of the few in­sur­ers who can pro­vide cover for a day, a week, or a year. Some clients are happy with the se­cu­rity they have at home. They keep their equip­ment locked up be­hind alarms, but when they want to use that equip­ment for a week­end at a mu­sic fes­ti­val, or a film shoot, and they want to insure it for that pe­riod, we will insure it,” says Munks. Dam­aged and stolen equip­ment sig­nif­i­cantly af­fects the liveli­hoods of per­for­mance artists as it leaves them with­out the tools to ap­ply their trade. ISO was able to con­tinue tour­ing at the end of last year af­ter their in­ci­dent was re­ported by na­tional me­dia and they re­ceived sup­port from their spon­sors, mu­si­cal in­stru­ment re­tailer, Mu­sic Con­nec­tion, as well as from fam­ily and fans. How­ever, the in­ci­dent may show that there is an op­por­tu­nity for bro­kers and in­sur­ers to make this cover more vis­i­ble, specif­i­cally for mu­si­cians. The fact that the time­frame of the pol­icy can be tai­lored is ex­tremely use­ful for bro­kers when ne­go­ti­at­ing equip­ment cover for equip­ment in­sur­ance, par­tic­u­larly in the case of per­form­ing artists. Tour­ing mu­si­cians of­ten tour for smaller pe­ri­ods of time; while in­ter­na­tional artists can tour for up to a year, thus lo­cal artists might only have their equip­ment on the road for a few months, or in the case of a mu­sic fes­ti­val, for a week­end at a time. This can work out to be more af­ford­able for the client.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.