Analysis: Jackson Case Will Change The Tune For Concert, Artist Insurance

“If you have a security guard who winds up punching someone in the face or kills someone, who is responsible? “Is it the artist, the bodyguard, the promoter? I think promoters will require stars to indemnify their own staff,” said McNaught. “Even if AEG was not held responsible, I still think this case will make attorneys find ways to tighten contracts.” An attorney for Lloyds of London involved in the Michael Jackson case declined comment for this story. The price of premiums also may go up, according to one concert producer who did not want his name used. Currently, promoters pay 3 percent to 5 percent of the value of the policy, meaning that AEG paid between $530,000 and $875,000 for the $17.5 million policy it took out with Lloyds of London for Jackson’s “This is It” tour. AEG, which had initially sought to collect on the $17.5 million policy after Jackson’s death canceled the tour, dropped a claim against Lloyds amid revelations in leaked emails that show AEG executives were concerned about his stability ahead of his planned London comeback tour. Insurers routinely send doctors to do medical exams — and occasionally hire investigators for background checks– before placing multi-million dollar policies for the stars. After the Jackson trial, the reams of information they need will skyrocket, said Adam Steck, CEO of SPI Entertainment, who recently brokered a deal for an 18-show run by rocker Meatloaf at Planet Hollywood in Vegas, starting September 26. “We’re in a high risk business, said Steck. “The case will require artists to disclose medical conditions and the producer will need to insure and vet them properly, meaning more red tape. This could affect ticket pricing at the end of the day.” In its wrongful death suit against AEG, Jackson’s family claimed AEG negligently hired Murray as Jackson’s personal physician and ignored signs Jackson, who died in 2009 at 50 from an overdose of propofol, was in poor health. AEG Live argued Jackson’s prescription drug and addiction problems predated their deal and that it did not hire Murray or see he was a danger to the star. Even though Lloyds didn’t pay off on Jackson’s death, legal and insurance experts say artists’ coverage will now carry many more exclusions — specific instances of prior injuries, drug use and now perhaps negligence by staff that won’t be covered – giving promoters and insurance firms an out from paying claims if stars do not fulfill obligations due to negligence by a person on the star’s staff. “There will be exclusions for personal assistants, doctors, anybody but the performer,” said Jon Pfeiffer, an entertainment attorney in Los Angeles.

Concert to benefit music foundation The Project Matters to be held Wednesday at Mexicali Live

WHO: Gold Fields, Rush Midnight, GNGR. WHAT: Benefit concert for The Project Matters. WHEN: 8 p.m. Wednesday. WHERE: Mexicali Live, 1409 Queen Anne Road, Teaneck ; 201-833-0011 or mexicalilive.com. HOW MUCH: $15 and $18. MORE INFO: theprojectmatters.org. The initial goal of The Project Matters foundation was modest. “All I wanted to do was help a kid buy a pack of strings, something so small which I know would mean a lot, because you go through them so quickly,” said Karen High. “I know. I lived it. I witnessed it. We had the means for $10 here and $10 there, a lot of kids don’t.” The retired teacher from Freehold, her husband William and son Matt started The Project Matters in memory of her other son, Benjamin, a musician who died at 19. Since its inception, the foundation has bought those strings and done much more, including buying instruments and renting studio time for New Jersey bands with musicians 21 and under. After doing some research, they choose a band to help for a year.