Just about anyone who has produced an Off-Off-Broadway show lately knows about the extra expense of liability insurance -- when the rental contract says, "Renter must provide a certificate of general liability insurance naming the Venue as an additional insured...," to the tune of $1 million and up in coverage. This can cost you a lot of money. It's especially expensive if you're just doing one show, because the minimum charges are so high.
As producer of the Midtown International Theatre Festival, proprietor of Where Eagles Dare rehearsal studio, and publisher of OOBR ("the off-off-broadway review"), I have had to buy general liability insurance sufficient to last me year-round. I have way too much insurance, but I can produce whatever I want without worrying about coverage. As a result, I can let other producers use my insurance.
The way the arrangement works is this: another producer needing insurance for a show names me as an associate producer. (This is a simple matter of a letter of agreement.) It is important that our agreement specify that I am an associate producer equal to any other associate producer, and that I am giving up any rights to your production or play. You mention me in billing, in your press releases, and in the program. (You don't have to mention me in advertising that is costing you by the line.) I ask my insurance provider to FAX your theatre a certificate of liability insurance naming the theatre as an additional insured.
This arrangement, unsurprisingly, involves an expense: $50 for the certificate and 40 cents per seat per performance ($30 per performance for a 74-seat theatre), with a minimum charge of $100. Considering that a typical insurance company will ask for $2000-3000 for a minimal liability policy, this is a good deal.
For more information, call me at 646/207-2926 or E-mail me at insurance @ oobr.com.
