I am wondering if any of you professional table-hoppers can answer this question for me. Are you covered by the restaurant as far as insurance goes or do you purchase personal insurance? On the couple of hopping gigs I have had I was paid under the table kind of and it was only for a short time so this wqas never discussed.

Unless you are an actual independent contractor, you are an employee. As such, you are covered by their insurance. Most restaurants try to get around paying their fare share of employment taxes by paying under the table, but when push comes to shove and the attournies are involved, you will be covered. This is not to say that they can't sue you individually as well, so if you are someone who has assets, I would get self coverage as well.

Kirk

Thanks for the advice.

While I am not an attorney, I do not beleive that you are an employee of the restaurant. Even if they pay you with a corporate check, you are an independent contractor. I strongly suggest that you get liability insurance. There are other threads on the Café that will give you names of companies. SAM & IBM offer group policies.

Kirk, sorry but you are incorrect.

A contract to perform is NOT, generally speaking, an employee agreement, but a contract for services, the same as they have with food delivery, linen service and the like.

Unless the restaurant has a SIGNED employee agreement with an entertainer, the entertainer is probably not covered, except in limited liability matters that would cover anyone in the restaurant. The performer is certainly NOT an employee of the restuarant without such an agreement.

The basic rule of thumb is this - if you haven't filled out a federal W-2 form and the equivalent state form, you are NOT an employee as I understand it.

In insurance, when a claim is filed and paid, the insurance company that paid the claim then resorts to something called subrogation, which is where they attempt to recover their loss(es) by filing a claim against the individual or company that caused the loss in the first place. Such claims can result in court actions against the performer and lead to attachment of income and/or assets for the claim and sometimes court and attorney fees. This can be QUITE expensive.

Subrogation is common in liability cases such as auto accidents, slip and fall incidents and similar situations.

In fact, many restaurants that do not have an entertainment license in their jurisdiction may well be in violation of the terms of their insurance contract, voiding it entirely, as many such policies require the restaurant to be in compliance with any and all licensing requirements of the city, state and federal governments.

ANY performer should have at least liability insurance if they are performing for the public. Affordable insurance is available through a number of organizations, including Clowns of the USA (who cover much more than clowns, including magicians and stage hypnotists). Coverage for policies protects you from subrogation claims, individual claims and whatever else the policy states.

Amazing what one can learn reading a friend's insurance training manual (which I needed to do for a trade show gig this month!). Mind-numbing stuff, to be sure, but worthwhile!

Hope this helps!

Lee Darrow, C.Ht.
http://www.leedarrow.com

Lee,

Not to argue, but in the construction business many hire "piece workers who they try to list as "independent contractors". They typically fail the test by the IRS and Insurance companies, regardless if they have a W-2 for m or not. In fact, one of the recommendations for when you are not paid under this arrangment is to go to the labor board and turn in the contractor and you will be on his payroll until you are paid what you are owed.

Regardless, I agree with you, that you should have your own business liability insurance policy, as I stated. Your homeowners policy will not cover you.

Kirk Grodske

Kirk, thanks for the polite response. I appreciate it. However, in the construction trades, piece work is a standard and also falls into a different category of work from an entertainer, as skilled workers in construction are contributing directly to the production of a product (the build they are on), whereas a magician is an entertainer working in a venue that is not specifically oriented to entertainment.

I know that in Illinois, such seems to be the case, anyway, and the labor board will not recognize a performance contract as it falls into contract law, not employment law. Different set of rules, as contract law falls under the jurisdiction of the civil courts, not the labor board. It is more like hiring a photographer for a wedding or a DJ for a reception. The contract takes the agreement into the area of contracts law and out from under the labor department, entirely as I understand it.

And a verbal contract, as we all know, is worth the paper it's printed on.

Again, thanks for the post and your considered and polite reply. Both are appreciated on this end.

Lee Darrow, C.Ht.
http://www.leedarrow.com

Lee,

I agree, no point in yelling. I find even when I disagree, I learn something. I, too, appreciate the even tempered exchange of ideas, information and opinions.

I am a professional photographer of 25 years experience, and it has come down that the weekend wedding photographers are actually employees of the studios that use them. It is just a matter of time before they are acted upon. It has to do with regular repeat performance of duties. Our associations are fighting it, as none of us wants to be on the hook for back employment taxes, workers comp and, believe it or not, sales tax.

I am also a construction remodeler and there is a big push to correctly identify Sub-contractors as employees if they don't have the necessary paper work, one of which is insurance. So there is a push there from the IRS and the insurance industry.

Of course, there are state and local differences in all these things. Talk with a professional in these fields, in your area, to adaquately protect yourself.

All and all a pain in the a**.

Kirk

If you are really worried about insurance, and sadly we all should be in this law suit crazy age we live in, believe(?) that the SAM does offer an insurance policy to any members, but it does cost extra. I personally deal with a private insurance broker who offers coverage for performers (not many will) that runs about $150 for the year. This covers both physical and emotional damages that anyone viewing you might incurr. It does not cover any damage from Fire effects that you might use (so hold off on the flame wallet if you are worried).

All in all the 150 a year is a small price to pay for piece of mind, and like medical insurance, is so worth it when you have to use it.

Mat Random

Kirk, my wife is a mamber of PPA, so I know what you are talking about on that front. Always make sure that your agreement with any stringers you use states, specifically, that they are 1099 independent contractors and that should keep you off the hook.

Again, though, a photographic studio using stringers, is still using professionals in the field of endeavor that is directly related to the purpose of the company using them - a photographic studio.

Restaurants may well fall outside of that stricture for a number of reasons, particularly the fact that restaurants are not solely purveyors of entertainment, but dining establishments, whose primary business is the preparation and serving of food and beverages, not entertainment. Night clubs, comedy clubs and the like, however, may well be in for a rough ride if these laws come into being.

And that would suck rock salt for the working magicians out there - like you and me!

Let's all work together to make sure that they don't!

Lee Darrow, C.Ht.
http://www.leedarrow.com

This is very itnteresting to an outsider - living in the UK we are very lucky in that we have our Actors and Alllied Professions Union which is called Equity. Membership to this includes £2 million public liability insurance and they also have a great legal department for chasing unpaid fees! Our annual subscription is basically calculated to what you earn and is worth every penny. As a low earner by comparison I only pay around £65.00 per year which is around 90$.

Equity exists in the USA as well, but their requirements for membership are more than a little stringent and really do not apply to the restaurant or even trade show performer.

We do have AGVA, The Americal Guild of Variety Artists, however, but, for a trade union, they have literally NO teeth outside of maybe Las Vegas and even there, they don't seem to do anything for the trade show guys and ladies who come through town on a daily basis.

Bottom line, folks, if you don't have performer's liability insurance (at the very least!), GET IT!

Respectfully,

Lee Darrow, C.Ht.
http://www.leedarrow.com