The entertainment industry is a business and it needs to be treated like a business. That means that you need to have insurance to cover your company in the event that something goes wrong. The entertainment industry is different from most other industries and there are some unique forms of insurance that are required. If you run an entertainment business you need to be aware of this and understand the different types of insurance. The future of your company could depend on having the right coverage.
The first type of business insurance that applies to the entertainment industry is cancellation insurance, this is to cover the costs in the event that an event needs to be cancelled for reasons that are beyond your control. This is to cover you in the event that you are promoting a concert or a similar event and at the last minute the band are involved in an accident and can't perform. At that point you will need to refund the money for the tickets but you will still need to pay for all of the things like renting the equipment and the arena as well as all the promotion money you already spent. This would be a large sum of money out of the promoters pocket so he needs to have insurance to cover it. It is important to keep in mind that cancellation insurance usually doesn't cover you in the event that you need to cancel due to weather, if you are holding an outdoor event you will need to have weather insurance to cover you for that.
If you are shooting a movie or a television show you will need to have insurance to cover you if shooting gets disrupted. For example if the star of your movie gets injured of is unable to work for some other reason you would likely have to shut down production. If you have already started shooting you will likely have a lot of money already invested in your movie so you will want to have insurance to cover you for this. This is especially true if for some reason you are unable to resume shooting down the road and the movie remains unfinished.
There is also insurance that will be required to cover the people and equipment involved in actually shooting the movie. Stuntmen for example need their own special insurance since the high risk nature of the job puts them at high risk. The equipment involved in shooting a movie is very expensive so it will need to be insured. If you are shooting in certain parts of the world you may need to have insurance in the event that somebody gets kidnapped. In some places actors or movie crew make appealing targets for kidnappers looking for a ransom, you may need to have insurance to cover this.