Entertainment & Sports
Managing risk with comprehensive strategies will help bring the curtain down to a standing ovation.
Download Report
What to Expect in 2025
Demand for live events will remain strong, boosting sector revenues. However, film and TV production will continue to grapple with new delivery models. Escalating production costs, skilled labour shortages, extreme weather and arduous insurance requirements could further impede profits and resiliency. Businesses that lean into a comprehensive risk management strategy and data-driven benefits plans can be the stars of their own success stories in 2025.
Download Report
1
Profitability
The same cast of characters could dampen industry profits, but smart industry players will find ways to prosper.
2
Vitality
Finding the right benefits solutions will help calm an unstable labour market.
3
Resiliency
Proper preparation against risk will deliver rave reviews for long-term resilience.
4
Festivals and Large Events
“Mega-events” bring mega-risk, but sophisticated planning will bring mega-success.
The same cast of characters could dampen industry profits, but smart industry players will find ways to prosper.
1 | Profitability
145 million
The number of attendees for events sponsored by Live Nation in 2023, compared with 98 million in 2019.1
Finding the right benefits solutions will help calm an unstable labor market.
2 | Vitality
Only 40% of entertainment and sports executives report having a formal ERM process.
Proper preparation against risk will deliver rave reviews for long-term resilience.
3 | Resiliency
If 2024 was the Year of the Comeback, then 2025 is poised to be its much-anticipated sequel as the demand for live events continues to drive revenue in the entertainment and sports sector. Worldwide revenues for live events is expected to exceed $85 billion, and US$96 billion in the next four years.2
Powered by the industry’s successful post-pandemic rebound, this trajectory is also coupled with the public’s quest for experiences that only live, in-person events and immersive technology can offer. Global entertainment and sports revenues are expected to reach US$3.4 trillion by 2028.3
Live Nation, the parent company of Ticketmaster, reported revenues of $9.8 billion across North America for the first half of 2024, a 12% increase from the same period in 2023, and expects 10% growth in 2025.4,5 Live Nation is also opening a 50,000-seat concert venue outside Toronto in 2025.6
However, threats to profitability loom. Catastrophic weather continues to wreak havoc on live events, causing cancellation insurance premiums to triple.7 Another issue affecting
profitability is mandatory insurance stipulations to ensure crowd safety management, emergency evacuations and other security protocols.
Elaborate and complex staging, lighting and sound systems escalate production costs to new levels. And the lack of skilled professionals with industry-specific experience and knowledge adds another layer to risk.
Film and TV production find themselves stymied by new distribution channels and an uncertain technological future. An estimated 50% of Canadian households will turn to on-demand streaming services, such as Netflix, Hulu and Disney+.8
Yet forward-thinking entertainment operations can overcome obstacles to profitability with a thoughtful risk management plan, adequate insurance to protect their bottom line and an experienced broker with a proven network of carrier relationships.
Download Report
As workers continue to leave the industry for other fields, the skilled labour shortage will continue to challenge the entertainment and sports sector. The industry faces a deficit of experience and institutional knowledge that is impossible to replace.
Already in short supply, many ancillary workers, such as special effects experts, set designers and production accountants, left the industry during the 2023 writers and actors strike for opportunities outside entertainment and have not returned to their previous careers.9
The fallout from this ongoing shortage has allowed workers to be more selective in choosing their gigs, often demanding several months’ notice in advance before agreeing to take a job.
The lack of available talent may be one reason that the industry needs greater productivity out of individual employees: 73% of entertainment and sports respondents to the HUB International 2025 Outlook Executive Survey10 listed employee productivity as a top HR priority in 2025, higher than any other option. Similarly, the overall cost of benefits (65%) and recruiting (56%) were the next-highest listed priorities.
To combat the shortage, entertainment and sports organizations are increasing their focus on employee benefits, including health insurance, financial wellbeing programs and
retirement options. However, the benefits needed to attract and retain talent will need to be personalized for individual employees.
For instance, live events crews are often older and aging out of the workforce, having been attached to festivals and entertainers for many years. Younger workers coming into the business are often more attuned to their benefits needs than previous generations. Given the transient nature of the entertainment and sports business, many workers must prepare for interruptions in pay between gigs and self-fund their retirement, making financial education important.
And with gruelling travel schedules and long hours, people in the entertainment and sports industry disproportionately suffer from mental health issues. Performing arts workers are twice as likely to suffer from depression than the rest of the population, while individuals employed in the arts, design, entertainment and sports business have the third-highest rate of suicide compared with other industries.11
That means entertainment and sports operations need to put a special emphasis on mental wellbeing through benefits. Delivering personalized benefits plans derived using tools like HUB Workforce Persona Analysis can help organizations find the right mix of benefits that will help optimize recruiting, retention and engagement.
Download Report
The entertainment and sports industry is fraught with risks that can make or break an organization’s reputation and bottom line. Tough lessons from the past will motivate entertainment and sports companies to adopt a culture of safety, enhance risk management awareness and improve planning.
Music festivals are particularly susceptible to unpredictable risk and serve as cautionary tales for the entertainment industry. In the past three decades, concertgoers around the world have been killed or injured as a result of deadly stampedes, riots, convective storms and shootings.12
And catastrophic weather, skilled labour shortages and “auxiliary” activities (non-sanctioned ventures outside a live event) result in additional risk and higher insurance premiums. Cancellation, contingency and non-appearance coverage rates will rise up to 15% in some markets.
There are likely to be higher limits for general liability insurance to counterbalance the growth in scale and use of technology. As events expand and attract larger crowds, premium increases will vary by location and genre. Family entertainment facilities with liquor liability could see rate increases of 25%.
For sports operations, litigation and large jury verdicts will diminish insurer capacity and demand strict underwriting guidelines for abuse and molestation insurance, and coverage for concussion and brain-related injuries.
Nuclear verdicts have resulted in reduced limits for umbrella and excess liability and made it more challenging to procure adequate coverage. For example, venues that previously secured $50 million in excess liability coverage from a single insurer now need to acquire policies from four or five carriers to reach that limit.
Carriers will continue to require comprehensive information on evacuation strategies, crowd safety management, security protocols, ongoing training and background check systems.
A formal enterprise risk management (ERM) process will help mitigate risk and can result in lower insurance premiums, but only 40% of entertainment and sports respondents to the HUB survey reported having a formal ERM process. Partnering with an experienced broker can help jumpstart ERM efforts.
Case Study
When a music festival became overwhelmed by the number of insurance brokers and underwriters it worked with to procure proper coverage, it turned to HUB to consolidate its risk management. Doing so allowed the music festival to identify holes in its risk profile, obtain better coverage options and improve its risk profile.
Download Report
As music festivals and large, multi-day events proliferate, it’s not a matter of if but when a crisis will occur.
Live events are competing for limited entertainment spending by increasing their size, turning small festivals into “mega-events” that are expensive and risky to produce. In the face of this trend, properly preparing for exposures is imperative and will help organizations not only mitigate losses but also decrease reputational fallout after an incident.
Employee training, robust security protocols for crowd management and safety and an emergency response plan are critical for venue owners, event planners and promoters. These protocols are particularly important for large concerts or sporting events with 100,000 or more attendees.
Weather events like convective storms can turn a mega-event into a disaster. Ensuring proper security and safety can be difficult — as safety and security professionals have left the industry, the industry has lost years of safety experience.
However, sophisticated weather modelling, communication strategies and advanced security processes are reducing risk. Live event companies are investing in weather forecasting technologies and embracing new methods to better communicate with staff and attendees to quickly evacuate a space if needed. In fact, nearly 40% of entertainment and sports respondents to HUB’s survey are using modelling and forecasting to evaluate the potential impact of anticipated risks.
Other trends include adopting crowd monitoring systems and apps that can identify issues and communicate to both staff and attendees in real time, as well as using facial authentication software to enhance security.
Venues and production firms are also going back to the basics: Designating a point person empowered to cancel an event or evacuate a facility, and routinely running tabletop exercises to prepare for all risks.
Download Report
“Mega-events” bring
mega-risk, but sophisticated planning will bring mega-success.
4 | Festivals and Large Events
Navigating Your Next Steps
HUB entertainment and sports insurance specialists will work with you to develop a tailored strategy for 2025.
1
Develop a comprehensive risk plan.
Making risk management the centrepiece of your organization’s culture can help identify exposures and devise the right response in the case of an incident. Work with a broker with deep industry expertise to approach risk strategically and identify gaps in your insurance program.
Create a personalized benefits strategy.
2
Entertainment and sports companies are in the midst of a labor shortage, but those with a benefits strategy based on personalization and fostering a quality employee experience (QEX) will boost engagement, have an advantage in recruiting and retaining talent and lower risk. Work with your broker to identify employees’ needs to create a personalized benefits strategy.
An incident can devastate an organization’s reputation. Work with your broker to reduce risks and develop strategies to mitigate exposures. And take advantage of your carrier’s expertise if an event occurs — they may be able to assist with legal counsel, crisis management and digital forensics.
Rely on your partners in a crisis.
3
Consistent communication with your broker will help identify and mitigate issues in advance of the next renewal and position your organization in the best light. Review exposures and insurance needs at least 90 days prior to policy renewal to allow your broker to find the optimal mix of coverage for your organization’s needs.
Be transparent with your broker.
4
Be Prepared
Download our 2025 Entertainment & Sports Outlook and Insurance Market Rate Report to see what to expect in the coming year.
Download Report
Meet the Experts
Practice Leader
Entertainment & Sports Practice
Alan Holingsworth
Linkedin Profile
Chief Marketing Officer
Susan McGuirl
Entertainment & Sports Practice
Linkedin Profile
Risk Advisor
Win Williams
Entertainment & Sports Practice
Linkedin Profile
Expert
Amanda Shyhinskyj
Entertainment & Sports Practice
Linkedin Profile
Job Title Here
Firstname Lastname
Practice Name Here
Linkedin Profile
Expert
Sandy Taronno
Entertainment & Sports Practice
Linkedin Profile
Expert
Darren Brown
Entertainment & Sports Practice
Linkedin Profile
Expert
Ben Rossington
Entertainment & Sports Practice
Linkedin Profile
HUB Entertainment & Sports
When you partner with us, you’re at the centre of a vast network of experts who will help you reach your goals. For more information on how to manage your insurance costs, reduce your risk and take care of your employees, talk to a HUB entertainment and sports insurance specialist.
About Us
$305M
in commercial insurance premium brokered by HUB
8,100
entertainment and sports clients
50,500
insurance policies managed
When an intercollegiate team has a successful season, it often triggers a large...
Article
Watch now
Prizes, contests and consumer offers can effectively boost sales and increase...
Article
Read now
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor...
Outlook Report
Read now
Related Resources
3. PwC, “Seizing growth opportunities in a dynamic ecosystem,” July 16, 2024.
4. Live Nation, “Live Nation Entertainment Reporters Second Quarter 2024 Results,” July 30, 2024.
5. Investing.com, “Earnings call: Live Nation reports growth, optimistic about future venues,” July 31, 2024.
6. Global News, “Live Nation announces new Rogers Stadium with capacity of 50K in Toronto,” September 26, 2024.
7. Billboard, “Climate Change Has Caused Event Insurance Prices to Triple – and Indie Promoters Are Bearing the Brunt,” March 29, 2024.
8. Globe and Mail, “More Canadians have ditched traditional TV as streamers are ‘winning the battle,’ report suggests,” March 25, 2024.
9. Imagine Communications, “Bridging the skills gap: Addressing the talent shortage in the media and entertainment,” June 28, 2024.
10. HUB’s Outlook Executive Survey polled 900 C-Suite and VP-level executives on the issues facing them on profitability, employee vitality and organizational resilience.
11. Centers for Disease Control and Prevention, “Suicide Data and Statistics,” accessed September 16, 2024.
12. The Conversation, “Canada could have its own Fyre Festival fiasco if it doesn’t amp up event regulations,” August 23, 2022.
13. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempo lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempo.
14. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempo lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempo.
15. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempo lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempo.
16. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempo lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempo.
17. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempo lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempo.
18. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempo lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempo.
1. AP, “A swift rebound and unprecedented tickets sales for live music after pandemic shut venues down,” April 4, 2024.
2. Statista, "Event Tickets - Worldwide," March 2024.
73%
of entertainment and sports respondents to the HUB Outlook Executive Survey listed employee productivity as a top HR priority in 2025.
As events top 100,000
attendees, safety protocols are essential to help avoid claims.
Only 40%
of entertainment and sports executives report having a formal ERM process.
Sitemap
Terms & Conditions
Privacy Statement
© 2024 HUB International Limited. 150 N Riverside Plaza, 17th Floor, Chicago, IL 60606. All rights reserved.
Industry Outlooks
Employee Benefits & Retirement
Product Outlooks
Transportation
Real Estate
Nonprofit
Hospitality
Healthcare
Financial Institutions
Entertainment & Sports
Education
Construction
Cannabis
Agribusiness
North American Outlook
Keep pace with the latest trends.
Stay in the Know
Subscribe
Learn more about us. Visit hubinternational.com
Private Client
CA | EN
CA | FR
US | EN
CA | EN
Transportation
Real Estate
Nonprofit
Hospitality
Healthcare
Financial Institutions
Entertainment & Sports
Education
Construction
Cannabis
Agribusiness
Industry Outlooks
Industry Outlooks
Private Client
Employee Benefits & Retirement
Product Outlooks
Product Outlooks
North American Outlook