Avoiding liabilities in live sound is like walking through a field of
legal land minds, and only carefully mapped paths to tread will avoid setting
one off. Today’s audio companies must be fully insured, and prepared to handle
any situation that could arise before it happens. No one stresses this more
than Julee Milham, Esquire, and well-known local attorney to the Tampa Bay Area
who has been in practice since 1986. Milham was kind enough to grant an
interview to an aspiring entrepreneur and the information she provided is
invaluable to any business plan. Along with the many risks of any business that
must be considered, there's several that in live audio, we must be ever
conscious of.
Operating with safety first and foremost is, according to Milham, the
biggest item and risk to consider. She states, “the risk of injury to third
parties; whether by improperly secured, improperly installed, or improperly
operated equipment, including transit vehicles,” is the number one “red flag”
that must be addressed, then continually monitored through out the planning,
set up, and execution of any event. We have seen the results in the last decade
from negligence in all areas of production, with the loss of life and injury to
those third parties unacceptable. No one wants to find him or herself on the
wrong end of a situation that could have been prevented. The old saying, an
ounce of prevention being worth a pound of cure, really hits home in the live
audio world. During planning, asking all the right questions, brainstorming any
possible scenarios along with a fully planned out risk assessment will be just
as vital as the gear, crew and call times themselves.
Other ways of minimizing risks are by using properly written contracts
and securing the best insurance for your company. According to Milham, “You can
provide in your written agreements under what circumstances you can pull
equipment, in your own judgment.” By writing in the amount of control you have
over the use of your equipment and clearly stating what circumstances will warrant
the suspension of use, will help your company have a final say for when the
show goes on, and when it doesn’t. Other safety issues can also be addressed in
contractual mandates requiring written proof of current inspection reports along
with all staging and roofing specifications be submitted for review prior to
the arrival of your equipment on-site. Being able to verify what the physical
structure of the stage is comprised of and that it meets all state and local
regulations will prevent any issues with damaged equipment and safety hazards.
For outdoor gigs, in all areas of the country, weather conditions must be
watched, typical weather patterns observed for each location leading up to the
show, and then heavily monitored for the duration of the event. Taking into
account the factor of the type of staging and roofing, if it is a permanent
install, if wings are being added, and the composition of the roofing material
are all necessary prior to any outdoor stage use.
Insurance, good insurance, is another key to minimizing losses. Spending
the extra funds to guarantee that your company has the best coverage possible
for a general policy is a smart investment while providing for any unforeseen
future problems helps to reduce headaches later. Check around your area,
analyze your risks thoroughly, and then be prepared to take out extra coverage
for day of show on large festivals. Even though concert promoters are required
to have insurance to cover, according to Milham, “all types of losses,” it is
still better to be safe than sorry later. A claim of injury in which your
company is named could cost in the tens of thousands to litigate or settle, and
be the undoing of all the hard work to date. Be certain when dealing with a
festival that you not only are aware of the touring company’s insurance
coverage, subrogation and waivers but also the venue’s themselves. Many
instances will require the subcontractors to sign waivers of subrogation
limiting the chain of responsibility. Inquiring if your company can be named to
the promoter and or the touring company’s policy, as an additional insured, will
provide another layer of protection.
Other issues that could arise are within sound ordinances and
performance rights. Knowing what the rules of the area are, how loud you can
run, and at what time to pull the plug is important avoid being charged with disturbing
the peace or any other local laws that could compound the problem. When dealing
with performance rights, Milham confirms that operating as only a live audio
company, you are not subject to any kind of infringement. However, she cautions
that one must be certain “you aren’t participating in the unauthorized audio or
audiovisual recording of copyrighted material.” This includes allowing hook-ups
to your soundboard to record the performance in any way. Always be mindful of
artists performance rights, and when in doubt, don’t. As an example, a
designated representative of an unsigned, local artist that wishes to record
visually or run audio to their camera is fine to do so if the artist is only
performing their material. If it is any kind of a karaoke style performance, it
could be seen as infringement, leaving the audio company open to a liability it
could have avoided.
As many, including Milham stress, the importance of limiting legal
risks will only ensure and improve the health of all involved, from the guy
unloading the gear, the fan who is lucky enough to be next to the stage, to
the company itself, safety is not merely a component of the business plan, but
rather the basis of the plan to work from.
