Stage Collapses Highlight Need for Adequate Insurance
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Source: | A.M. Best Company, Inc. |
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The recent stage collapse at the Indiana State Fair is the latest in a number of weather-related incidents at outdoor festivals that highlight the need for insurance and risk management, the president of Doodson U.S. said.
"I deal with this day in and day out on a theoretical basis, but to actually see one happen -- it really brings home how real the risk is," said
An approaching storm brought strong wind gusts that knocked down a stage at the Indiana State Fair on
While Bassman couldn't speak to the Indiana State Fair incident directly, he said music festivals have a cancellation policy, which would come into play in an event like this. After the stage collapsed, the fair cancelled performances by Sugarland,
"If artists are ready and willing to perform, they are typically owed their full guarantee under the contract," Bassman said.
State fairs typically pay more than clubs, arenas or theaters, so cancelling a show could "mean a significant loss" for the fair, Bassman said.
It is typical for a state fair to hire a production company to set up the concert. That production company acts as a general contractor hiring subcontractors, who provide, lights, sound and even security.
"Each one of the subcontractors should be required to sign a 'hold harmless' agreement, and also provide an additional insured certificate to protect [the organizers] from negligence," Bassman said.
General liability polices for staging companies typically offer up to
The stage itself, which could be in the ballpark of
"It can all be very complex," Bassman said.
In the case of a 2009 stage collapse at the Big Valley Jamboree in
The incident killed a woman in the audience and injured dozens, including country singer
In addition, Premier Global was accused of failing to ensure that equipment was able to withstand stresses imposed on it during its operation and to perform the function for which it is intended or designed; and failure to ensure rigging was strong enough.
"People say it was an unfortunate gust of wind, but it goes beyond a freak of nature,"
He said the fatality was not a part of the department's investigation, because the woman killed was a spectator "and that's not within our jurisdiction."
Under Canadian law, the companies can fight the charges in court, and are expected to appear in court to answer the charges on
Harrison said no one has ever been jailed for this type of violation before.
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