In June of this year, Dave Grohl of the Foo Fighters broke his leg falling off the stage. Sadly, the band’s European summer tour was therefore cancelled. This represented a huge loss in ticket revenue, but what can musicians who suffer injuries or illness do to protect themselves against such losses?
Income Protection Insurance (IPI) is a great place to start!
- This policy pays benefits to those who become incapacitated to do their work, either by illness or injury. For self-employed musicians, this is hugely important as they are not eligible for Workers Compensation.
- IPI will usually replace up to 75% of a person’s gross income until they are fit to return to work or for as long as the agreed contractual term allows.
- Depending on the premiums paid, you can be entitled to benefits for as little as 6 months of your time off work, or until you turn 70!
- So when would you make an IPI claim?
- If you injure yourself in the line of duty, either on stage or off it, (and as long as you weren’t performing various activities your specific insurer would deem dangerous – base jumping for example) you can claim.
- If you become debilitated by sickness for a substantial period (depending on your policy, 2 weeks or longer) you can claim.
- As long as you are in your country of origin, or the UK, Europe, South Africa or the USA, you are eligible for most forms of IPI.
So why should you get IPI?
- Being a musician isn’t an office job. You require good physical health to perform. Without it you’re losing money so as long you are a full-time musician with no extra income, IPI can cover that.
- State benefits usually fall way below the income of average earners, so it’s a very good idea to get yourself covered with extra insurance.
- Benefit payments are made either weekly or monthly depending on your policy, so it’s regular assistance that will help you get back on your feet and back on that stage.