What percentage of your revenue is derived from professional entertainers, celebrities, athletes, and musicians?

This question helps the insurance carrier assess the risk associated with revenue derived from professional entertainers, celebrities, athletes, and musicians. These client groups often have high-profile status, complex financial needs, and significant public exposure, which can increase liability risks such as reputational damage claims or fiduciary duty issues, potentially impacting coverage terms or premiums for Errors and Omissions (E&O) insurance.

• Who qualifies as "Entertainers, Celebrities, Athletes, or Musicians"? This includes individuals or entities in the entertainment, sports, or music industries who are professionally engaged and often high-profile. Examples include actors, well-known public figures, professional sports players, and recording artists or bands.
• What does "Revenue Derived From" include? This includes revenue from services provided directly to these individuals or indirectly through related entities, such as their management companies, trusts, or loan-out corporations.

To answer this, you need to provide an estimated percentage of your firm's total revenue that comes from providing services to any of the following client types, combined:

• Professional Entertainers: Clients like actors or other performers.
• Celebrities: High-profile individuals in entertainment or media.
• Professional Athletes: Athletes in professional sports industries.
• Professional Musicians: Recording artists, bands, or other professional musicians.

An approximate percentage based on your best estimate is acceptable. Review your client list and revenue records from the past fiscal year to provide a reasonable estimate. If you do not derive any revenue from these groups, please state "0%".

• Mistake: Getting stuck trying to calculate an exact number.
  • An honest and reasonable estimate is all that is required. The underwriter is looking for a general sense of your exposure to this client segment, not a number calculated to the decimal point.
• Pitfall: Only considering revenue from the individuals themselves.
  • You must include revenue from services provided to entities controlled by or related to these individuals, such as their management companies, trusts, or corporations.
• Mistake: Thinking that a low percentage is not worth mentioning.
  • Any exposure to this client type should be reported accurately, no matter how small. Transparency is key to ensuring your coverage is appropriate for your risks.