When the star of the show can’t go on: understanding non-appearance insurance

As Rudge says, “anyone can be critical to a production”, whether that’s an actor, director, musician or member of the stage management, crew or backstage teams. Then there’s a choice to be made over whether to cover committed contractual costs or lost box office revenue resulting from cancelled performances.

He adds that in an extreme situation, where an entire run must be called off due to non-appearance, “it’s possible to cover any sunk pre-production costs”. 

This could include research and development time which, he points out, can amount to “a substantial investment” for some productions.

The risks around non-appearance become more visible when star names are involved, particularly if a show is marketed heavily around the involvement of a big-name actor.
Continues...

Sometimes, says Rudge, it’s “not necessarily financially achievable” to cover every scenario, so a balance might need to be struck by covering, for example, a restricted number of performances.

Over the years, there have been several high-profile cases of stars falling ill, failing to appear or walking out midway through a run. Perhaps the most famous example of the latter was in 1995, when Stephen Fry left a West End production of the play Cell Mates shortly after opening night. More recently, Girls Aloud singer Nicola Roberts had to finish her stint in the musical Hadestown prematurely due to illness.

In both circumstances, understudies were able to step in. But what if it’s a solo show and the entire production hinges on a single person? In these cases, the risks can grow exponentially higher, particularly if the star involved has a track record of non-appearance.

“It’s important to be bespoke,” says Rudge. “It largely boils down to what the producer wants to protect, and then finding a way to cover that as economically as possible.” 

‘It may seem unlikely that you’d have three people off who all cover the same role, but it does happen’

Working with SRG can support producers in navigating available options, as the team has years of expertise to draw on and works with insurance companies that offer products tailored to the theatre industry.

The process of ascertaining the right non-appearance cover usually begins with SRG looking at budgets and the casting breakdown, including understudy arrangements, together with collating any information that sheds light on the level of risk involved. Producers should consider not just individual absences, but situations such as an outbreak of illness that leaves several company members unavailable at the same time.

“It may seem unlikely that you’d have three people off who all cover the same role,” Rudge says, “but it does happen.” 

This risk can also be magnified during periods of holiday cover, which is an important consideration, particularly for longer-running shows where scheduling can become challenging.

As with any form of theatre insurance, it pays to be covered from the very beginning. During rehearsals, for example, the creative team can be the most pivotal personnel, so covering the non-appearance of a director, designer or composer may be crucial during this period. This is particularly relevant if the show is being marketed on the basis of key creative talent.

So, it can be a complicated picture, but Rudge emphasises that “the more information a producer is able to provide, the better the advice we can give”.

There is always a ‘how long is a piece of string?’ aspect to insurance cover; after all, nearly any eventuality is possible, and therefore insurable. Where the expertise comes in, especially in a business with as many moving parts as theatre, is knowing what to prioritise and then calculating the liabilities accordingly. Considering non-appearance can easily constitute more than half of the overall insurance budget, it’s essential to get it right.
Continues...

“It’s crucially important to speak to clients to work out exactly what they want,” says Rudge’s colleague Simon Geen, SRG’s head of theatre. “There are many variables and choices to be made, but it often comes down to a producer or general manager’s personal feelings about risk.”

He adds that the company has worked with a wide range of clients over the years, and says the landscape is always shifting. Considerations around well-being and health-related absences, for example, are now more central. Then there’s the fact that star casting is increasingly popular as a marketing driver, while rising ticket prices and costs mean the financial implications of cancellations are more severe.

Although insurance can sometimes seem expensive, as Rudge points out, “one cancelled performance can justify your entire premium”. 

In some circumstances, the financial impact of cancellation may outweigh the cost of cover, depending on the structure of the policy.

Non‑appearance insurance is a specialist product and, as with all insurance, cover is subject to underwriting, policy terms, conditions and exclusions. The scope of protection, including causes of non‑appearance and financial losses covered, will vary depending on the policy selected. This article is intended for general information purposes only and does not constitute advice