Johnsonese Brokerage 
insurance for the creative community 
 
Spring Theatre Insurance Newsletter
April 2010 (2nd Edition)
Welcome to Spring!
 
This is the second issue of the Johnsonese Brokerage Theatre Insurance Newsletter. The goal of our quarterly newsletter is to provide useful information about insurance to theatres and performing arts groups.
 
This past weekend I participated in the 2010 Creative Chicago Expo at the Cultural Center. I met with a number of theatre people and discussed their insurance needs. I'll definitely be back to participate in the event for 2011!
 
 Creative Expo
In This Issue
Crowd Funding a New Alternative for Theatres?
Theatre Disasters Still Happen
Chicago CityArts Program Liability Insurance Requirements
 
Crowd Funding a New Alternative for Theatres?
 

The New York Times recently ran an article about small museums using "crowd funding" to support new programs. But of course this fund raising approach also applies to theatres. A number of websites, the most recognized of which is Kickstarter.com, have launched to provide crowd funding services.

 

CoinsKickstarter.com, which launched in April of 2009, bills itself as a fund-raising platform for a variety of creative endeavors. It enables visitors to support projects with any amount of money they wish. Projects are financed on an all-or-nothing basis; if a project does not meet its fund-raising goal within a maximum of 90 days, it receives nothing. While many of the site's 75 new projects every week represented individual efforts, a "small but growing" number were spearheaded by organizations. The company takes 5 percent of the full amount raised on each project, if and only if project organizers meet their goals.

 

A quick review of the Kickstarter.com site on April 14, 2010 showed 15 theatre projects listed, of which 9 were fully funded. Of the funded projects, the largest amount raised was $6,575. Other players in this space include ChipIn.com, CreateaFund.com and FirstGiving.com.

 

-New York Times, March 14, 2010
 
 
 
Theatre Disasters Still Happen 
 

We sometimes think that with contemporary building codes and fire prevention technology, theatre disasters are a thing of the past. But here are some stories of contemporary theatres struggling to make a comeback from losses. The London Frontier Theatre in Magdalena, New Mexico operates in an adobe building was constructed as a Works Progress Administration project in 1936 and once served the town as a gymnasium.

 

Last September, rainwater from heavy weather conditions seeped into the west wall of the building and caused it to crumble. Because of the adobe construction, the theatre's director "...walked in to find a river of mud flowing onto the floor and a giant hole in the wall." Even after an insurance settlement of $47,000 for repairs, the theatre is struggling to reopen for the summer season.

 

In Los Angeles, Garfield High School's historic auditorium wasLos Angeles City Flag gutted in a May 2007 arson fire that also damaged an attached office wing. The school board is planning a new auditorium featuring a cutting-edge theater facility as well as a new 58,000-square-foot administration building with improved classroom and laboratory space. The estimated cost of the project is $54 million. The district is proposing to finance the project with future insurance payments. The building was insured with nine different insurers.

 

The Taproot Theater in Seattle's Greenwood neighborhood reopened in February after arson caused extensive damage in October. The lobby ceiling even collapsed from water damage. A million-dollar remodeling job was required to fix smoke, fire and water damage. As part of their remodel, they even reoriented the lobby to allow for future expansion. The damage was covered by insurance.

 

In Columbia, Missouri a city-owned 19th-century barn that was home to the Maplewood Barn Community Theatre was destroyed by fire earlier. The estimated loss of the barn was set at $100,000, and there could be some proceeds from a self-insurance pool to help put up a new structure, but it likely would be insufficient to cover the total costs. A theatre board representative stated that the re-building process will be "...an uphill climb and it will be slow."

 

-El Defensor Chieftain, New Mexico, March 17, 2010

-Los Angeles Times, February 09, 2010

-KUOW News, Seattle 02/01/2010

-Columbia, MO Daily Tribune, April 10, 2010

 
 
 
Chicago CityArts Program Liability Insurance Requirements
 

Are you familiar with Chicago's insurance requirements for organizations receiving arts grants?

 

Chicago City FlagAll organizations receiving CityArts funds are required to carry adequate liability insurance with a minimum limit of $500,000 for twelve months (January 1 - December 31) of the grant year. Coverage extensions must include contractual liability and name the City of Chicago as an additional insured without recourse or right of contribution for any liability arising out of the grant agreement.All organizations receiving CityArts funds are required to maintain and submit Certificates of Insurance that show coverage for the entire grant period (January 1 - December 31). A copy of the Certificate of Insurance must be submitted to the Department of Cultural Affairs prior to the release of the grant award. Current Certificates of Insurance will be required for each year the grant is awarded. Grant funds may be used to offset insurance costs.

 

Most cities and foundations offering grants to the arts have similar requirements. 
 
 
At the Johnsonese Brokerage it is always our goal to provide personal and professional service! To get started immediately call 773.252.8750 or Email info@johnsonese.com
 
Regards,
 
Chris Johnson 
 
Christopher Johnson
Johnsonese Brokerage LLC
 
 
About the Johnsonese Brokerage
 
The Johnsonese Brokerage LLC is a licensed and bonded independent insurance agency focused on insuring creative organizations.
 
Who we insure:
 
  • Production Companies
  • Theatres
  • Theatre Companies
  • Dance Companies
  • Acting Schools
  • Concerts
  • Musicians
  • Light & Sound Companies
  • Costume & Props Companies
 
 
 We are licensed in the following states:
 
  • California (license #0G69323)
  • Florida
  • Illinois
  • Indiana  
  • Maryland
  • Michigan
  • Minnesota
  • New York
  • Ohio
  • Pennsylvania
  • Texas
  • Wisconsin
 
 
How are we doing? Your feedback is always welcome!
Common Insurance Terms
  
 

1. Fire Legal Liability 

Covers, for example,
damage to rented space resulting from a fire caused by the insured's negligence

 

2. Extra Expense Coverage

Reimbursement for costs incurred to continue operations when an insured property has been damaged

 
3. Medical Payments
Insurance
 

Coverage for minor medical expenses without the need to prove liability

 
 
 

The Risks of Festival Seating

 

People are often surprised that festival, or open seating, is a major issue when it comes to insuring live events. The roots of this can be traced to December 3, 1979. 

 

Eleven people were crushed to death at a Who concert in Cincinnati as people rushed forward seeking the best seats. The incident led to a reduced use of festival seating at US venues. Reserved seating can reduce insurance costs.

 
 
 
Our Business Partners
 
  • Abacus
  • AmWins
  • AXA
  • Chubb 
  • CNA
  • Insurance Noodle
  • Markel
  • Paychex
  • Production HUB
  • Risk Placement Services