Touring the USA? What You Need to Know About Liability Insurance
Got yourself some gigs in the USA? Yeehaw, how exciting. Perhaps less exciting is that insurance should be on your pre-departure checklist, because things can get complicated fast if something goes wrong.
What Most Musicians Miss About Insurance
- A US-based insurance policy will only help if you’re sued in a US court.
- An Australian-based policy (with US territorial cover added) will cover you if legal action is taken in Australia for something that happened in the US.
So, what’s the risk?
Let’s say something goes wrong at a show in the US. You’ve bought a US liability policy, great! But if, for any reason, a litigant brings a claim against you in an Australian court (because your band is an Australian business entity, or the claimant may be an Australian fan), your US policy won’t respond. Only an Australian policy with US territorial cover will respond when it comes to legal action brought in an Australian court.
Simple Rules for Staying Protected:
- Make sure your Australian policy extends to cover US activities (called US territorial cover, being an extension that allows your policy to respond to incidents occurring in the US).
- Be aware that US policies will only defend claims in US courts; Australian policies handle Australian court actions.
- Talk to your Blue Rock insurance broker before you travel or book international gigs. Don’t assume you’re covered just because you’ve bought “liability insurance”.
As outlined, without the extension, your Australian policy might not respond to claims brought in Australian courts for incidents that happen in the US. Given that a proceeding might be initiated in either Australia or the US, US territorial cover is important.
Cover that follows you wherever you perform means fewer headaches and more music.
Why Musicians Need Insurance: Real-World Examples
Example 1: Case Ends Up in an Australian Court
An Aussie band tours the US. At a show in LA, someone claims they were injured by falling equipment. The band had US liability insurance for the trip, but no US territorial extension on their Aussie policy. The injured person, now living back in Australia, sues in an Australian court. The US insurer won’t step in, because the action is outside US jurisdiction.
Without US territorial cover on their Aussie policy, the band has to cover their own costs.
Example 2: Case Starts in the US But Ends Up in Australia
A Sydney solo artist plays at a festival in Texas. There’s a problem at the event and they’re initially sued in a US court. However, the US court, after reviewing the situation, decides it doesn’t have jurisdiction because the artist is based in Australia. The injured party then files a new claim in an Australian court. Fortunately, the artist’s Australian liability policy includes US territorial cover. This means the Aussie insurer steps in and handles the claim, as the policy has a US territorial extension. If that US territorial extension was not in place, the artist would have had to pay for everything out of their own pocket.
Can an Australian Entity be sued in a US Court?
Yes, an Australian band or performer can be sued in a US court, but only if the US court can establish what’s called “personal jurisdiction.” This basically means you (or your business) have enough of a connection with the US to make it fair and reasonable for a court there to hear the case.
How would this apply to you?
- If you regularly travel, gig, or do business in the US
- If you have a US-based business partner, booking agent, or subsidiary controlling your activities
- If you sign contracts that specifically say legal disputes will be settled in a US court
But here’s the thing…it’s not straightforward.
US courts require the person suing you to prove you actually have proper ties to the US. This can mean a lot of paperwork, legal costs and time spent on “jurisdictional discovery” (gathering evidence about your business links). Even then, US courts are often hesitant to get involved with overseas bands or artists unless there’s clear evidence of real business activity or direct links in the US.
And even if a US court finds against you and awards damages to the injured party, it does not automatically mean that ruling is enforceable back in Australia. To enforce it here, the other party needs to go through additional legal hoops to establish their claim under Australian law.
Music Business Insurance FAQs for US Tours
Do I need both US and Australian liability insurance for my tour?
Not always, but you do need to check that your Australian policy covers US activities (US territorial cover) and where it will respond if a claim is made. If gaps exist, a separate US policy may also be needed.
What happens if I’m sued in both countries?
For most Aussie musicians and performers, being sued in both countries is possible, but more likely in the event you have a material business presence or specific legal ties in the US.
Each insurer will only respond if the claim is made out under their policy and is payable in accordance with domestic law. US policies for US court, Australian policies for Aussie court (with US territorial cover). Without the right cover, you may have to pay out of pocket.
Is “worldwide cover” on my policy enough?
Not always. Some policies exclude the US or only provide limited cover. You need to double-check the fine print and ask your Blue Rock insurance broker to spell out what’s included.
What should I tell my BlueRock insurance broker?
Be upfront about all the places you’re visiting or playing, and the type of activities you’ll be doing. The more detail, the safer you’ll be.
Get Specialised Insurance for the Music Business
Got questions, or want to talk through your options? Contact BlueRock’s Insurance team for a no-obligation chat. We’re here to help!
White Sky, now part of BlueRock, provide specialised accounting and financial services that help artists, managers, record labels, festivals and creative businesses thrive.
Disclaimer: This article is general information only and does not constitute legal, financial, or insurance advice. Readers should consult with a qualified legal or insurance professional regarding their specific circumstances.
