Musical Theatre New Zealand Inc. Insurance Covers Updated January 2019
Introduction • Do you own your own theatre? • Are you part of a Board of Management running a theatre facility? • If so, Musical Theatre New Zealand can offer you the following…
It is recommended that all theatres should hold the following insurances:
Public Liability Covering Public Liability insurance responds to claims that a business or organisation is legally liable to pay compensation in respect of unintended and unexpected personal injury and property damage arising out of products or services. This insurance can cover both the cost of claims for compensation that the business or organisation is legally liable to pay, and also the costs of defending the claim, including the costs incurred in any investigations or negotiations Sum Insured $5,000,000
Public Liability - Extensions Punitive and Exemplary Damages - $1,000,000 This is a complex section of civil law but simply put, it is the amount awarded by a court to punish or make an example of any party for their negligence causing injury or loss to any party. Other Property in Care, Custody and Control - $250,000 This is your legal liability for having other peoples property in your care, custody and control, and is typically excluded from standard liability policies. Most liability insurance policies eliminates coverage for damage or destruction to other peoples property under the care, custody, and control of an insured person.
Statutory Liability COVERING Statutory Liability policies cover liability arising out of unintentional breach of almost all New Zealand statutes. They can indemnify organisations and individuals against the costs associated with an investigation or prosecution for an unintentional breaches of statute. Policies typically cover: • Judgments (fines) • Defence costs • Reparations (Health & Safety in Employment Act only) • Representation costs at official inquiries or complaints tribunals It is not uncommon for offences alleging breach of statute to operate on a 'strict liability' basis - i.e. intent does not need to be proved for a prosecution to be successful. Cover is designed to protect against the unexpected and not the results of wilful misconduct or ignorance of the law. SUM INSURED – $1,000,000
Premium Cost The Musical Theatre New Zealand scheme is available to its members for a premium of $375.76 Incl. of GST for: Public Liability $5,000,000 Statutory Liability $1,000,000 Almost without exception, the premium rates for this type of cover ranges from $550.00 - $650.00 + GST.
Employer’s Liability – Optional Extra W HERE V OLUNTEERS ARETREATEDTHE SAME AS E MPLOYEES BY W ORKSAFE NZ Covering - Employers Liability insurance is to protect the organisation against claims by their employees/volunteers for damages as a result of personal injury arising out of or suffered during their employment that is not covered by ACC. Sum Insured - $500,000 Premium Cost – $120.00 + GST
Associations Liability – Optional Extra Despite their not-for-profit or charitable nature, associations have faced a significant increase in liability in recent years due to heightened expectations of responsibility and accountability being applied to the management teams of organisations. The risk presented by an association is not limited to the organisation itself. Members of the board, trustees or the management committee are legally liable for their conduct, potentially placing their personal assets at risk. Although the association may indemnify its office holders for claims made against them arising. This indemnity however is not always guaranteed as there may be insufficient funds or the circumstances may not permit the indemnification to operate. An Association Liability policy will address the concerns and liabilities of both the association, and the officers of the association. For more information, please contact Aon
New Insurance Offer From AON EVENT CANCELLATION INSURANCE
Event Cancellation • The Event Cancellation Policy provides cover for cancellation due to a cause outside the control of the insured and the participants. • The risk determines the premium anyway with an outdoor event attracting a much higher premium than an indoor event due to the much greater exposure to adverse weather events. • An option is to take cover for Non Appearance - where this is required or to be considered information on the individuals is required such as date of birth and is a little bit like adding an illness and accident cover.
How Would It Work? • You would insure the full value of a total loss without allowance for any waivers or recoveries. • You can insure for either the estimated total gross receipts (ticket sales) in which the case the sum insured will allow for the expected profit or for the total expenses. • You would not made deductions for expenses that you they believe will not be incurred in the event of cancellation. • In the event of a claim the policy will respond by meeting the net loss after deduction of any savings made.
Premium Cost • The risk determines the premium with an outdoor event attracting a much higher premium than an indoor event due to the much greater exposure to adverse weather events. • Based on “SHOW X” staged in a provincial city last year – out of the $159,700 in expenditure incurred, the premium would have been $965.00 + GST • If you are interested in looking in to Event Cancellation insurance, please contact the MTNZ Office for further information.
Other Services Available • AON is happy to do a full no cost review of all existing insurance covers. • They will benchmark your existing premium cost against what others are paying throughout the country. • This gives each individual Society the ability to personalise its insurance to suit its own circumstances while having the benefits of a national New Zealand wide focus . • This is particularly important when cash flow is tight and insurers are looking to increase premiums throughout the length of the country.
AON Contact Ashley McDonald Aon New Zealand Phone 0800 100 441 or 06 873 0430 Cell 027 485 0975 Email ashley.mcdonald@aon.com
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