‘Joe Jonas Disagreed W/ Nick’s Direction’

Joe did NOT AGREE with Nick Jonas’ music musical direction!

NOTE: Jonas Brothers are losing a lot of money for canceling their tour! They may be on the hook for millions of dollars, as promoters and vendors look to recoup the money they’ve laid out in advance of the shows. An insurance broke told MTV: ‘It really depends on how their [insurance] policy is tailored, but generally speaking, there are cancellation policies that cover things beyond their control.

If they canceled because they had a rift within the band, that’s something that’s not insurable, because that’s within their control. ..There is no insurance that is going to respond to something that is within their control. If an artist had, say, $2 million of cost and expenses on a tour, they’re going to want to insure for that if the tour is canceled. The same goes for a promoter like Live Nation; they can also take out a policy on a tour, because they want to insure it in case something happens. After all, they’ve outlaid a considerable about of money.’

Artists are basically required by the promoter of the event to have a certain amount of insurance, and the way it’s underwritten depends on the artist themselves. Someone who has a history of risky behavior, the insurance company may decide to exclude certain things like no-show coverage, or it may be very costly to the artist..

In this case, it’s likely there is partial coverage for what the promoter has spent; the insurer may have to pay out and, if they do, they would probably go after the artist to recoup some of their losses.

I think you could assume that this is going to cost them. When an artist just doesn’t have a particular reason [for canceling a tour] that’s listed within the policy form, the insurer can deny it, and there’s a good chance they will. The promoter can certainly appeal that, and it can go to the legal system — that definitely happens in most cases. And who knows what will happen after that.’