A downside of the entertainment and arts industry remains that workers’ compensation benefits are few and far between. Let’s say you get hurt training or rehearsing on your own time. If you’re lucky enough to have health insurance with a benefit for when you can’t work, you’re covered. But, for most of us… getting hurt means a couple of rough months ahead. You 1) go to work and spend twice as much time in pain as it will take you twice as long to recover if you are constantly injured; or, 2) you spend your entire recovery stressing about how you’re going to eat and pay your rent.
If you have money set aside to cover your expenses in case you get hurt, you won’t have to worry. You have plenty of time to think about what your next step is. Think how easy your recovery will be if you don’t have to stress about anything else except your injury!
Consider another scenario. What about the companies you work for now? I hear artists say, “Oh, they have insurance. I don’t need to worry.” Do you really know what kind of insurance they have? Regular event companies are only required to carry a “liability policy” during their events. Liability policies only cover all other people at the event. Let’s say you’re walking on stilts and you fall on someone. Guess who’s not covered? That’s right, you’re not. The person you fell on is entitled to a share of the $2 million liability policy, but not you!
In this situation, you will be forced to take some time off to recover. What better idea than having money set aside to help you in your recovery? It might even end up being like an extended vacation at that point!
So what if I don’t have any money saved? A couple of things usually happen.
As mentioned above, performers go back to work and only make their injury worse OR take much longer to recover because they are too active in their injury.
If they do not have the option to return to work, the credit card is withdrawn to cover this unpaid vacation. Do you even want to imagine the debt you would increase if you were out of work for 3 months? And… don’t even get me started on the interest you’ll pay on your credit card!
Here is a positive one. You are very, very frugal and should eat beans and rice and not turn on the lights during the time you are out of work. Sound nice?
Do you really want to take the risk? Don’t make the mistake of saying “that will never happen to me”. Let me tell you what happens to everyone, including me. Don’t get injured without a financial backup plan!
Exception?
There is one exception to not having workers compensation in our industry. If you are lucky enough to be part of a union contract, such as Actors Equity or SAG-AFTRA, or a large company like a theme park, you may have a chance to be covered by workers’ compensation. Even then, remember that workers’ compensation typically only provides up to 66% of your regular salary, and sometimes you may not see the money for a couple of weeks. Having a little more saved will help you bridge the time between not being paid and receiving workers’ compensation. The last thing you need for a healthy recovery is things out of the ordinary!
What do I do with these 3-6 months of expenses?
I am not a financial planner, so I am not going to give any specific financial advice. But, what I will say is a simple Google search for “What do I do with my emergency fund?” returns a lot of good advice. The general idea is to keep the money in a safe place that is easy to reach within a couple of days.
Still need help?
I highly recommend @DaveRamsey at http://www.DaveRamsey.com! His Total Money Makeover book by him is a great way to do it and very easy to follow!
Note: AuditionInside is not an expert in workers’ compensation or finance. Seek professional advice before making any decisions related to workers’ compensation claims or banking.
