Insurance Company Floats Alternative To TRIPRA

Take1’s Combined Crisis Cover is being presented as a “robust alternative” to policies associated with the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) of 2015 that provides federal and private coverage for losses from certified “acts of terrorism.” Scott Carrol, executive vice president for Take1 Insurance’s entertainment division, developed the policy with Lloyd’s of London after listening in on a panel at this year’s International Live Music Conference and realizing TRIPRA does not cover many incidents of major concern for event organizers and promoters.

“We’re trying to address all kinds of things that can happen in the live event space,” Carrol told Pollstar. “From terrorist acts like the Bataclan to malicious acts like the Boston Marathon bombing, like Pulse nightclub.”

Carrol said that events like the shootings at Pulse and the Century 16 theater in Aurora, Colo., as well as the Boston Marathon bombing were not designated as acts of terror and thus not covered by TRIPRA. “The spirit of this is that what’s happening in the world is beyond what might be declared terrorism,” Carrol said. “This policy is more contemporary to what we are experiencing in the world.” The Take1 Combined Crisis Cover is offered as an annual policy, meaning that it is purchased once a year and all of the events put on by event planners, promoters, entertainers or service companies are covered up to the limits.

The policy is written to include “malicious acts,” which encompass lone wolves who don’t fit into standard definitions of terrorism and “active assailants,” who use instruments like firearms, guns or bombs. Combined Crisis Cover also insures losses from events in which acts or credible threats of malicious acts cause evacuation, emergency lockdown and “denial of access to an insured event by order of a relevant authority.”

The rates for the policy were set to be comparable to those encompassed by TRIPRA, Carrol said. The lowest limit offered is $100,000, which costs $745 and carries a $1,000 deductible.

The highest offering through Take1 is a $1 million limit for $2,325 with a $2,500 deductible. Larger limits would be available through Lloyd’s. “There is very little to no underwriting required. If you fit into the categories [of the event industry] you qualify,” Carrol said. “We believe the industry needs this. And we wanted to make it affordable, available and flexible.”