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Magical Michael New user Oklahoma 14 Posts |
I’ve been doing magic for over 40 years now. I’ve always liked the idea of giveaways. As we all know, a giveaway makes for a lasting impression and leaves the kiddies loving you forever. My wife just brought up a very scary point. We live in the century of lawsuits. I have never had a negative experience with a giveaway, but what do you all feel about the possible choking hazard that many small giveaways present? How do you handle the very real danger of a possible lawsuit?
Magically yours,
Magical Michael "...and the spirit of youth lurks within the minds of all men, waiting to be brought forth by the power of the magi." |
paulajayne Inner circle London England 1160 Posts |
Not sure on USA law but if the item is wrapped and has a warning on it - i.e. contains small parts, etc.
Then I think you would be covered. I always worry about balloon animals that I give out. Paula
Paula Jay - Magic to Remember -
--------------------------------- I once wrote a book on elephants, I think paper would have been better. ---- |
Mediocre the Great Inner circle Rich Hurley 1062 Posts |
I think its a good idea to think about this. You should consider if the souvenirs you leave behind could be dangerous to young children. Any doubt, I wouldn't do it. That limits your liability right there. On the other hand, these days, you can get sued for the most ridiculous things. Especially if you have any kind of assets attorneys can go after.
Keep in mind, that your home owners liability policy won't cover business activities. So if your performing for money, you'll need to buy a special policy. SAM (Society of American Magicians) has a $1 Million policy available for it's members to purchase. Of course, if you don't have "deep pockets", you may opt to "be careful". When I was younger, I was not concerned about such things.... Today, a person with assets, in a litigious society.... I think it's a good business decision to carry performing liability insurance.
Mediocrity is greatly under rated!
-------------------------------------------- Rich Hurley aka Mediocre The Great! www.RichHurleyMagic.com |
Magical Michael New user Oklahoma 14 Posts |
Thanks Paula, you make a good point, but the items I giveaway are not individually packaged. I usually give out an inch-and-a half plastic, gold coin and, occasionally, a small glitter pom-pom (about a quarter inch), that I call “woofles,” makers of the famous woofle dust. I just recently decided to give away 2 and a half inch “Official Magician’s Assistant” stickers. Guess I’ll just have to get the insurance that Mediocre suggested and let the insurance companies hash it out.
Mediocre, you’re right about probably needing some sort of insurance. There’s a $1 million policy in IBM’s “Linking Ring,” also. Probably the same people that make it available for SAM. I’ve thought about it before, but by George, I think you’ve convinced me that it’s time to take the plunge. :o) Thanks you both for your input.
Magically yours,
Magical Michael "...and the spirit of youth lurks within the minds of all men, waiting to be brought forth by the power of the magi." |
paulajayne Inner circle London England 1160 Posts |
Here in the UK there are many agents that will not book you unless you have "Public Liability" - and rightly so.
Also we have a Portable appliance test (PAT) that pertains to all electrical appliances. Example :- I booked a group to perform at Madame Tussuad's - the night before their amplifier broke so they bought a new one. The turned up for the gig and this amp was not on their PAT certificate so before it was allowed in it had to be PAT tested. The best bet is always -Play safe and cover your backside as much as you can. Accidents WILL happen. Paula
Paula Jay - Magic to Remember -
--------------------------------- I once wrote a book on elephants, I think paper would have been better. ---- |
procyonrising Special user New York 698 Posts |
Okay. This is only my opinion and I'm not a lawyer; I'm just someone who's worked a lot and been sued a lot (for various reasons, all unrelated to performing, and all related to real estate - but enough to know what can occur when performing).
First, having insurance usually means you'll get sued. It means they can get money from you - ESPECIALLY if they can get up to $1 Million. Personally, I avoid it like the plague (but I'm not a lawyer...). Second, one of my best lawyers told me this simple rule, which I live by: if you're serious about business, incorporate. The corporate form is a separate legal entity, allowing you to perform without fear of lawsuit (unless you do something negligent when performing, like spit gasoline in someone's eye). You should have at least one corporation working for you if you're a professional. Additionally, it should "look" fairly unrelated to your performing persona ("ABC corporation"). You can do a DBA if you want to do a "Magic by YourNameHere." (But then again, I'm not a lawyer.) Third, if you're worried about taxes, you shouldn't be. In a corporation, you spend first, then get taxed on what you have left at the end of the year. To that end, I recommend starting a second corporation in Nevada (simple process you can do yourself, but I'm not a lawyer, and this is just information). You rent your equipment from the Nevada corporation. Thus, the Nevada corp makes a lot of your money for you and avoids state income tax. (But I'm not an accountant either.) If the give-aways are made by the Nevada corporation, licensed to your home corporation, you have double-protection against someone "piercing the corporate veil." They cannot connect the performance to the rental company in Nevada. Nevada corp gets sued. Okay, have the company declare bankruptcy and start another one the same day. (I'm not a lawyer, this isn't legal advice, remember that.) Cheaper than insurance. If they sue the home corporation, so what? Do the same thing. Fourthly, shelter your personal assets in separate corporations and/or limited partnerships (if you have kids). Someone sues you and tries to repo your car? Cool, it's a company car, not your car. Someone wants to put your house up for foreclosure? Cool. It's a company home, you just live there. Get it? Separate corporations for separate assets. This applies only to assets worth protecting. If you make less than $150,000 a year, this probably isn't worth your time. And, if you are, you probably have a lawyer or accountant telling you this. (And I'm not a lawyer or accountant, and this isn't legal or accounting advice.) Let me end with this, since this isn't really advice, it's just some talk: I've never been successfully sued, ever. But I love flaunting my money in the faces of those who try... A good lawyer helps you do this. A good accountant helps you do this. Treat them like your brothers, because, when the going gets rough, they're the only family you know. Best, James. |
BIlly James Special user 991 Posts |
I'm becoming increasingly wary about this as well and I am insured up to the eyeballs.
A lot of schools here in Australia wont use you unless you provide proof of public liability coverage. It seems that there are more and more kids with quite severe allergies to a range of things. It may not be long before the whole 'lolly giveaway' thing disappears from my act. There was a juggler here who did the bit where he juggles with an apple and eats it during the juggle... well a bit of apple fell to the floor and a lady slipped on it....sued him for 75 grand. Fortunately he was covered. |
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