JERRY SMITH, Young Associates |
Arts Consultants Canada/Consultants canadiens en arts (ACCA) recently surveyed its membership about their level of awareness and understanding over two particular areas of insurance needs – Management Liability and Professional Liability. With a 25% response rate, some 80% of participants identified themselves as ACCA members – current, potential, former – and many of the rest (18%) were supporters active in the sector (e.g. funders).
Respondents were asked to identify how often they were asked for advice on board insurance (often called Directors and Officers / D & O coverage); according to respondents, 80% of client Board members asked (often + occasionally), as well as 72% of staff. However, consultants did not necessarily have high levels of confidence in responding to these queries (50% moderate confidence, and 42% low confidence.); less than 1 in 4 respondents had high levels of understanding about where board members or NFPs may have exposure to personal liability.
A similar profile emerged when respondents were asked about Professional Liability Insurance, also known as Errors and Omissions, protection from possible claims arising from actions of professional negligence. Less than 1 in 10 respondents felt they had a high level of understanding, and the vast majority admitted to only moderate (56%) or low levels (35%) of understanding. While the vast majority of respondents do use a formal contract or letter of engagement (57% always, 36% usually), an excellent step in mitigating any risk, it may not be sufficient. At some point, almost half (46%) of consultants have been asked by clients to provide proof of their own professional liability insurance, and more than a third of consultants (35%) have been deterred from bidding on a contract because they didn’t have Professional Liability coverage.
According to Steve Beatty, President of CultureONE, “Those who can, create. Those who can’t, insure.” That’s what 25 years experience in arts and entertainment insurance has taught him. “We love the arts, the excitement, the creativity and the passion. But we know in a creative world there are lots of risks – some predictable, others not so much. CultureONE specializes in managing the risks unique to creatives and creative organizations; we craft programs for you, designed to help protect you from the things you may not have seen coming. Providing insurance for the arts is the only thing we do.”
JOIN US FOR AN INSURANCE SEMINAR
with Steve Beatty, cultureONE
Wednesday, April 15th @ 3:30 PM
Metro Hall, Toronto