But even high-priced insurance isn't a safe bet. In 2005, Britney Spears and her tour production company, Britney Spears Touring Inc., sued eight different insurance companies after they declined to compensate her for about $9.8 million in losses for shows canceled in Chicago and Detroit. Spears canceled the shows because of a knee injury, but insurers declined her claim, alleging she failed to report having had knee surgery five years earlier.
The insurers argued that they would have denied coverage in the first place had they known about the surgery.
The case was eventually dismissed; Spears' lawyer would not comment on whether a settlement had been reached with the singer.
How much AEG will recover through the insurance policies on its Jackson concerts, meanwhile, remains unclear. AEG's Phillips told the Associated Press that the company will receive an insurance payout if Jackson is determined to have died of accidental causes, including a drug overdose. But natural causes of death, Phillips said, won't be covered.
Even under a full, $25 million payout, AEG wouldn't recover all its costs -- Phillips told the Associated Press he spent $25 to $30 million on Jackson's advance, while Billboard reports that AEG sunk as much as $30 million into concert production costs.
The company could, however, break even, thanks to sentimental fans. Phillips said that 40 percent to 50 percent of concert ticket-buyers have decided to forego full refunds. They're keeping their unused tickets as memorabilia instead.
ABC News' Eileen Murphy and Nathalie Tadena contributed to this report.