Music commissioner suggests insurance co-op to help curb music venue costs

At Monday’s meeting of the Music Commission meeting, Pedro Carvalho, a commission member and co-owner of the Far Out Lounge music venue, floated the idea of using the Rally Austin nonprofit to create a cooperative insurance program to help local music venues manage rapidly increasing insurance costs. Carvalho suggested a model in which venues collectively contribute to a self-funded insurance pool. “We’re all paying an exorbitant amount of money into insurance. A co-op insurance program could be super beneficial to us,” he said, citing his venue’s $120,000 annual insurance costs as an example of the financial strain on small and midsized venues. A co-op system, he argued, could not only lower costs but also generate revenue for Rally Austin to reinvest into other projects to support affordability goals throughout the city. Theresa Alvarez, CEO of Rally Austin, acknowledged the financial burden venues face but said the organization has not pursued an insurance co-op model due to other ongoing priorities, and expressed an openness to the idea. At last month’s meeting, Carvalho said Texas’ favorable laws for gun owners have created ongoing concern among insurance carriers because of the increased chance of a violent incident at events with large crowds.