Our theatre group operates out of a few different venues, so we have a liability insurance that covers accidents (cast or audience) during rehearsals and performances.  It's based on average cast size and average audience size.  Our venues are relatively small (less than 100 people) and the insurance policy costs less than $200 per year.  Check with a local insurance company - odds are that someone in your group sells insurance, or has a trusted relative or friend that sells insurance.  The whole insurance issue is probably just a molehill that looks like a mountain.  Talk to an insurance guy you can trust and it'll take care of itself.

Originally posted by JSerio We are in the process of finding a theatre to rent for our summer show. We have found the theatre but today when I meet with the person who rents the theatre she mentioned that we must have insurance stating that if something where to happen at the venue, the person who was injured would sue us instead of the theatre.

Jigga wha?  You're supposed to take out an insurance policy that makes someone else decide who to sue?  Who are you supposed to take it out with, a hypnotist?

The reason you take out the indemnity insurance is to have coverage IF you get sued, and the reason they want you to is to make you a juicier target, but that's not going to stop the theater itself from being a target if they have liability.

I'd get your cast and crew to sign waivers, then take out insurance just for the production itself to cover the audience, and you should be good.