My office has contacts with hundreds of community theatre groups around the country. The vast majority of these groups are struggling to make ends meet. Production costs continue to rise; from royalties to lumber to makeup to printing costs. Promoting productions with little or no budget remains an on-going challenge. Cost cutting measures while needed are difficult to find.

Thrown into this mix is a growing concern regarding adequate insurance protection. How much is enough? What coverage should we have? Why doesn't our general liability insurance cover injuries to our volunteers? Is there coverage for this? Can board members be sued? What happens if a volunteer, using his own van to transport some stage props, is involved in an accident? Is coverage available if our group serves liquor? Our group does not own a building. We rent facilities for our productions. What kind of insurance should we have?

While all theatre groups share common features, it is also true that each theatre group is unique. A common feature; all groups need insurance. A unique feature; not every group needs the same insurance coverage.

This is why a package policy is probably in your best interest. A package policy consists of individual components. This allows you to select only those components that your particular theatre group needs. Beyond the basic components, you pay only for the coverage you need.

It is a very good idea to review your insurance program annually. This is especially true if the membership of your Board of Directors changes every year. When reviewing your current insurance program, consider the following options in terms of the specific needs of your group. 

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GENERAL LIABILITY:This is the most important part of any insurance program. It is insurance you carry to protect yourself against claims filed by a "3rd party". For example, your general liability is designed to protect you in case a patron files a claim because she slipped and fell in the lobby of your theatre.

The AACT liability component offers you a $1,000,000. per occurrence ($2,000,000. aggregate) limit of protection. Our experience says that this limit is adequate for many community theatre groups. It is also the limit most venues require whenever one of our theatre groups rents or leases a facility in which to perform.

The AACT liability component also includes non-owned automobile liability and host liquor liability if your group does not charge or if the event does not require a liquor license.
 

UMBRELLA COVERAGE:For those groups that need an even higher level of protection, AACT offers an Umbrella policy; additional layers of liability protection of $1,000,000 or more.
 

VOLUNTEER ACCIDENT LIFE & DISABILITY:  One of the most commonly held misconceptions involves protection in case a volunteer gets injured while working on a theatre-related activity. The general liability coverage outlined above is not designed to protect the theatre group against claims filed for injuries incurred by your volunteers. Some examples that are not covered include: An actors trips and breaks her ankle while exiting the stage in the dark; a stagehand cuts his hand using the power saw; the stage props person sprains her back moving furniture; the concessions person burns his hand serving coffee during intermission.

Volunteer accident policies can be purchased at a minimal cost and at various levels of coverage by all AACT members. These policies cover your groups volunteers in case of accidents while involved in theatre- sponsored activities. Coverage for full-time, paid staff is also available.
 

PROPERTY:The AACT insurance program offers both building and personal (theatrical) property coverage that can easily be modified to meet the specific needs of your theatre group. The property program offers broader coverage. For example, it can provide replacement cost without many of the exclusions found on other insurance policies.

One of the unique features of the AACT insurance is the theatrical properties component. This is specifically designed to cover your sets, props, lights, sound equipment, costumes, etc.

The property program offers Extra Expense coverage. In the event you can not perform due to a covered loss, this coverage will pay the expenses of moving the show. Loss of Business Income is also included to cover lost revenue in case a production is shut down for a covered loss.

Included in the AACT property insurance is coverage for theft of (box office) moneys.
 

DIRECTORS & OFFICERS LIABILITY: Like their counterparts in for-profit corporations, the directors & officers of non-profit theatre groups can be held liable for the decisions they make. The AACT Directors & Officers Liability kit includes a simple 2-page application form. The policy covers individual board members for liability they assume while serving on the board.
 

ENERGY SYSTEMS:Also known as Boiler & Equipment, this coverage picks up where your property policy stops; closing the gaps of exposure even further for AACT members. The Energy Systems policy covers mechanical equipment (such as boilers and air conditioning) against losses due to mechanical breakdown, electrical disturbance and steam boiler explosion.
 

OTHER COVERAGE: Depending on the nature of your particular theatre group, you may want to consider other coverage including: WORKERS’ COMPENSATION, EMPLOYEE DISHONESTY, COMMERCIAL AUTO, LIQUOR LIABILITY, BUSINESS PERSONAL PROPERTY (office equipment, furniture, etc) ELECTRONIC DATA PROCESSING (EDP).

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