SIA offers Commercial General Liability (CGL) policies for individual performers and vendors through a master policy, and coverage for select groups of low-risk performers and event planners through program insurance. While both provide liability coverage, they work a little differently. Let's talk about them!
Master policy - individual performers and mobile vendors
SIA's individual performers and mobile vendors are covered under a master policy. A master policy is a single insurance contract that provides coverage for multiple individuals, properties, or entities under one centralized policy. It's commonly used to reduce paperwork/management, offer lower premiums by bundling risk with all insureds under the association, and take advantage of the law of large numbers. The law of large numbers is a statistical concept related to probability, and it's a factor underwriters use when determining our rates each year. Their risk analysis will become more accurate the more people are in a group (meaning similar risks) - which means if there aren't enough people in a group, they, can't accurately assess risk.
SIA's association is the named insured on the master policy, and our insureds are covered as association members. An endorsement in the policy removes actual coverage from the named insured (SIA's association) and instead grants coverage to whoever is listed as the named insured on the certificate of insurance (that's you, the client!). While association members are insured under the same policy, each member has individual limits of coverage and their own coverage dates; the policy's coverage limits aren't shared by any other members of the association.
By unifying and simplifying policy administration, master policies help to reduce complexity, lower costs, and ensure consistent protection across a wide range of operations. Check out the Performer page and Vendor page to learn more about the policies!
Program insurance - Music, Photos, and Event Planners (MPEP):
Our MPEP clients have coverage through program insurance. Program insurance has coverages that are designed for a niche market/group with shared characteristics (such as low-risk performers or event planners). These programs are typically handled by a program administrator, or a recognized expert in a niche class of business. SIA is MPEP's program administrator.
Program administrators have explicitly defined/managed duties, such as being granted underwriting authority from a carrier. They also help to decrease the workload for carriers, and in turn decrease costs. This typically leads to being able to provide clients with lower premiums! Program administrators must know all about the risk they're insuring because they help the carrier with:
- Underwriting, loss control, and claims expertise
- Knowledge from an expansive distribution base
- Ability to rate, quote, bind, and service policies
The carrier maintains the roles of co-manager, referral underwriter, and auditor, while the program administrator handles transactional operations. The collaboration between a carrier and a program administrator is beneficial for both parties and for insurance agents because:
- Carriers can reach diverse, niche markets by deferring to the program administrator's expertise in a field
- Program administrators benefit from the carrier's guidance, referrals, and established reputation
- Agents can easily access coverage for their hard-to-place clients
Program insurance is beneficial not only to the carrier and the program administrator, but also to those purchasing a policy. Check out our Music, Photos, and Event Planners (MPEP) page to see if your business is eligible for the program!
Often, performers and mobile vendors don't fit into your typical insurance boxes, making it harder for them to find coverage. However, that's why both the master policy and program insurance exist. If you have any questions about SIA's policies or programs, please give us a call (715-246-8908) or send us an email!
