Kanye West’s Saint Pablo Tour Cancellation: Will Insurance Cover It?

Excerpted article was written By Dan Rys’s | Billboard.com

(Nov. 2Kanye West poses before Christian Dior 2015-2016 fall/winter ready-to-wear collection fashion show on March 6, 2015 in Paris. 1), after a rep for Kanye West confirmed that the remaining 21 dates of his Saint Pablo Tour would be canceled, Billboard estimated it would result in the refunding of more than 300,000 tickets, worth $27.3 million. At the time, however, the big unknown was why West canceled the dates, leaving open the question of whether insurance would cover the costs of shutting down the tour.

Last night, West was placed under observation at a Los Angeles-area hospital, and a source told Billboard he was suffering from exhaustion and sleep deprivation. And while there is little to no further information about West’s condition or the specific reasoning for canceling the tour dates, exhaustion raises several possibilities in terms of West’s potential financial liabilities.

Assuming West had insurance for his Saint Pablo Tour, a standard policy within the music industry would cover an “accident to or illness of any insured person which, in the opinion of an independent medical practitioner approved by the underwriters, entirely prevents any insured person from appearing or continuing to appear in any or all of the insured performances or events.”

Kanye West’s Saint Pablo Tour Cancellation: What’s the Damage?

Essentially, that would require a third party medical practitioner to determine whether or not West’s exhaustion would physically allow him to continue. But it also would typically come with exclusions: for instance, if the exhaustion was due to drug use, sexually-transmitted diseases, “unreasonable or capricious behavior” — which would include cancellations as a result of excessive partying or similar behavior — and whether there was a pre-existing condition, meaning if the person had a history of exhaustion or a previously-diagnosed and undisclosed illness.

A fairly textbook example of a situation that would be covered by this type of policy is Lady Gaga’s 2013 Born This Way Ball Tour. With 22 dates to go on the trek, Gaga suffered a labral tear in her right hip that required surgery, forcing her to cancelthe remaining shows on the tour and causing $25 million worth of ticket refunds. Gaga’s injury clearly would have been covered by this type of insurance, including expenses related to shutting down the tour, advertising costs and lost revenues for both the promoter and performer.

Again, however, West’s situation is slightly different, and there is no clear answer.

“[The policy] is often invoked very quickly for specific injury or illness that is diagnosed easily,” says Paul Bassman, president/CEO of Ascend Insurance Brokerage, one of the top insurance firms in the music industry. “Exhaustion would definitely be harder to prove, but I wouldn’t say it’s impossible.”

 Kanye West Hospitalized

Live Nation, the promoter for the Saint Pablo Tour, likely has its own policy, which generally differs from an artist’s policy by not carrying exclusions for things like drug use, capricious behavior or other situations, though the independent medical evaluation would still be required. That could leave open a situation where Live Nation would be covered for its own expenses, including its guarantees to West (if they are responsible for paying those guarantees in the event of a cancellation), while if West’s condition was not deemed to be covered by his insurance policy, he may still be on the hook.

For now there is little to do but hope that West is getting the treatment he requires, while any definitive judgment is too early to assess. “We just don’t know enough about why he cancelled,” Bassman adds. “Until more information is available on the specifics of the cancellation, it’s not possible to determine whether this will be covered by insurance or not.”

Cape Dorset’s burned down high school under-insured by millions

Excerpted article was written By Elyse Skura, CBC News

Five years before Cape Dorset’s Peter Pitseolak High School burned to the ground, it underwent an extensive, $17-million renovation and expansion. But the Government of Nunavut’s insurance company never knew about it.

It wasn’t until after the fire that officials with the finance department realized the school was under-insured — by millions.

“What happened with that project is we found out that the $17,335,054 had not been communicated to the insurance company,” Finance Minister Keith Peterson told MLAs yesterday.

“When the school burned down, we learned that it was under-insured, so we couldn’t put a claim in for the remaining value of the school there, the book value.”

But that wasn’t the only bad news from the insurer.

“There have been three schools in the past that had burned down, I believe,” Peterson further explained. “The insurer decided that there would be a $10-million deductible. In essence, we were to become self-insurers.”

What about other government properties?

The news came during a review of Bill 21, the 2015-2016 Write-off of Assets Act, where members of Nunavut’s committee of the whole agreed to forgive about $14.7 million for the school.

That number, Peterson explained, represents the book value of the addition after amortization.

David Joanasie, the MLA who represents Cape Dorset, had a number of questions for Peterson, wondering not only how and why this happened, but if it’s possible that this could happen again.

Finance Minister Keith Peterson says the government has checked all its assets to ensure they are properly insured. (Nunavut Legislative Assembly)

“We’re going to have to build a new school using the government’s money,” Joanasie said in Inuktitut. “Can the minister give us an update to today: [is] all the Nunavut government infrastructure insured?”

After the incident was discovered, Peterson says the departments of Finance and Community and Government Services “quickly moved to remedy the issue,” checking the value of buildings against insurance records.

“I’m pretty sure we’re OK there and all the buildings are adequately covered for insurance,” he concluded.

How it should work

Jeffrey Chown, the deputy finance minister, says the government’s risk management and insurance division then worked with Community and Government Services to ensure this “communication error” is a one-off mistake.

At the time of construction, Chown says, the asset is insured at its initial value.

High school students in Cape Dorset are currently taking classes in four portables. The new school will cost $34 million. (submitted by Christa Borden)

Whenever the building gets an upgrade, the additional value should be added.

“We’ve done a full review of all the assets out there to revisit the valuation,” said Chown. “We’re continuing to work with them to ensure that we don’t have communication errors of this nature in the future.”

This fall, Cape Dorset high school students began using four portable classrooms. The government estimates the new high school will cost $34 million by the time it opens in 2019.

Travellers in US change plans ahead of Hurricane Matthew

NEW YORK _ Travellers along the East Coast are preparing for delays and cancellations as Hurricane Matthew heads toward the U.S.

Airlines are preparing to suspend flights from Florida up through Georgia, South Carolina and North Carolina, depending on where the hurricane strikes. Cruise lines are shuffling ship itineraries and many frantic vacationers are looking at insurance policies to see if they are covered.

Most airlines are letting fliers change to a later flight without penalty. In some cases, the passenger would have to cover a difference in fare.

As for hotels, most rooms can be cancelled without penalty up to 24 hours in advance. Car rentals typically don’t have any cancellation penalties

Cruise lines aren’t cancelling sailings but are re-routing many ships to avoid the storm.


Hail and Rainstorms in Prairies cost $50 million in insured damage

Press Release:

Insurance Bureau of Canada (IBC) reports that a severe storm that swept across the prairies last month has resulted in more than an estimated $50 million in insured damage according to Catastrophe Indices and Quantification Inc. (CatIQ).

The warm, humid air mass that crossed the region between June 28 and 30 resulted in multiple severe thunderstorms, heavy rainfall causing localized flooding, strong winds gusting over 100 km/h, intense lightning, significant hail in Okotoks and a small tornado nearPonoka, Alberta.

“Storms like this bring the message home that we are seeing more extreme weather events and resulting damage to property,” said Bill Adams, Vice-President, Western and Pacific, IBC. “To help Canadians protect their property, the insurance industry continues to share information about emergency preparedness and create new products that offer Canadians more choice and flexibility in protecting their homes.”

While most of the damages occurred in Alberta, claims were also reported in Saskatchewan and Manitoba. Adams encourages those affected by these severe weather events to speak with their insurance representatives if they have questions about their coverage. For more information, call IBC’s Consumer Information Centre at 1-844-2ask-IBC.

About Insurance Bureau of Canada
Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.

P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 120,000 Canadians, pays $8.2 billion in taxes and has a total premium base of $49 billion.

For media releases and more information, visit IBC’s Media Centre at www.ibc.ca. Follow IBC on Twitter @InsuranceBureau and@IBC_West or like us on Facebook. If you have a question about home, auto or business insurance, contact IBC’s Consumer Information Centre at 1-844-2ask-IBC.

About CatIQ
Catastrophe Indices and Quantification Inc. (CatIQ) delivers detailed analytical and meteorological information on Canadian natural and man-made catastrophes. Through its online subscription-based platform, CatIQ combines comprehensive insured loss indices and other related information to better serve the needs of the insurance and reinsurance industries, public sector and other stakeholders. To learn more, visit www.catiq.com.

If you require more information, IBC spokespeople are available to discuss the details in this media release.

SOURCE Insurance Bureau of Canada

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Canada: Boater frustrated by marina insurance change

Canada: Boater frustrated by marina insurance change

By Don Fraser, St. Catharines Standard

Greg Swallow says all he wants is his boat back — without an insurance policy revision hassle.

The trouble began earlier this year, when owners of about 100 boats learned they’ll need new winter storage after the ShipShape boat yard lease was terminated by St. Lawrence Seaway Management Corp.

Swallow says his 50-foot powerboat was put up for winter storage and repair by ShipShape, located in Port Weller.

He’s now told boaters using the marina need to add the Seaway and Transport Canada’s name to their insurance policies to protect them from liability.

Swallow, a Burlington resident, said he and other boaters are being denied access until that change is made.

“Out of no fault of our own, our boats are being held hostage by the St. Lawrence Seaway and Transport Canada, and we have no voice,” he said, supplying e-mails citing similar concerns form other boaters, who have not gone on the record. “We are … humble boaters being treated with disdain.”

The property is now being managed by Niagara Falls’ Marlow Bailiff and Property Management Services.

Last month, Marlow deferred comment to Bruce Hodgson, director of Seaway market development, who said lease cancellation details are a “commercial item that I prefer not to get into.”

Jonathan Marler, general manager of ShipShape, told The Standard the issue was over tax payments, which he considered the Seaway authority to be responsible for.

A March 30 e-mail was sent out by Marlow to all boaters of ShipShape that aims for a launch date at the site of April 15.

The e-mail advises boaters some of the insurance policies submitted do not meet the requirements set out by the Seaway in the storage agreement at 10 Seaway Haulage Rd.

In another recent e-mail to boaters, supplied by Swallow, Marlow says one condition for entry to the property is that insurance certificate. “I have been instructed to deny entry to anyone that has not meet all conditions of the storage agreement,” said the e-mail.

Swallow adds the Seaway will start charging him storage fees at about $2,000 a month if his boat is not out by June 15.

Seaway spokesman Andrew Bogora confirmed the Seaway is requesting that it and Transport Canada be added to a boat owner’s insurance policy as an “additional insured.”

Bogora said this request is not unusual and a “common operating practice.”

“Insurance companies typically do not charge any fee to issue a certificate of insurance, with the additional insured(s) noted within the text of the policy,” he said in an e-mail.

He said the Seaway’s objective is to “assist owners in getting their boats launched into the water.”

To that end, the Seaway has made arrangements with the bailiff to grant boat owners access to the property, and allow them to prepare their boats for launch.

He said boat owners will not be changed any fee for storage, as long as the boats are launched by June 15. Bogora said most owners have indicated they’ll be out by then.

Should any owner choose not to launch their boat by June 15, the Seaway will charge a “market standard fee for boat storage” for any time that extends beyond June 15.

As for potential security lapses raised by Swallow, Bogora said the marina site is secured in a manner similar to others.

He said there’s a fence around the perimeter of the property, and a locked gate controls access to the land and boats.

The site, he said, is monitored by both security patrols and cameras.

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