Insurance in the Film and TV Industry...Opps /Photo Credit Slow Mo Guys
FILM INSURANCE… (In the Entertainment
industry. What is Film insurance?)
Bruce
Bisbey…please follow me at: https://dumbdogproductionsllc.blogspot.com
Film Insurance
Definition: Film insurance refers to insuring the film
against unforeseen incidents like illness of an actor or occurrence of natural
calamities leading to delays in the film schedule. It can also include coverage
against accidents that damage equipment while shooting is in process.
Description: Film-making involves a series of activities
in which a number of parties, both external and internal, are involved. The
involvement of so many people and processes in the making of a film lead to
several uncertainties. In fact, big budget films are known to well overshoot
their original release schedule. Insurance enables the producer to mitigate the
risks involved in making the film to some extent.
WHAT IS FILM PRODUCTION INSURANCE?
Film production insurance protects your Production Company
and/or project from related liability.
Since no two projects are alike, a good film production
insurance policy is tailored to a production company’s needs at the time of
purchase. Every production insurance policy needs to be tailored for the
company if an annual policy. Or for the project if a short term film production
policy.
A film insurance policy is based on the best offerings
from insurance companies that provide entertainment production coverage.
In general, a solid policy will protect the producer from
liability related to injuries on set and any accidents in working vehicles.
Also covering theft and ‘loss and damage’ of rented and owned equipment.
Policies can also protect the producers from other libel or copyright
infringement claims.
PRODUCER'S PRO TIP:
If you are a producer on a project, you carry the majority
of the responsibility if something goes wrong. This is a huge responsibility
that can have financial, legal, even criminal ramifications to you personally.
WHAT'S THE DIFFERENCE BETWEEN SHORT TERM PRODUCTION
INSURANCE VERSUS ANNUAL?
Short term production insurance covers your productions on
a project-by-project scale. Purchased on a production-by-production scale,
short term production insurance policies can cover as little as one day of
production (although you should cover your prep days).
Planning to shoot multiple times throughout the year? Then
you’ll want an annual policy. Covering all the projects you’re working on at
once, annual policies are most typically employed by active production
companies.
It is always a good idea to quote both annual and short
term production insurance policies when shopping for insurance. You will often
find that the difference in price is nominal when considering the longer period
covered.
YEAR-ROUND VIDEO PRODUCTION INSURANCE IS A GOOD IDEA IF
YOU:
·
You have a
production company…
·
You own
equipment that you rent to productions…
·
You are a
freelance producer with 4+ productions a year…
·
You are
producing an independent film…
INSURANCE BUDGETING PRO TIP:
Basic insurance short term or annual is going to cost a
few thousand dollars, at minimum. Beyond this starting number it is best to
budget 2.5% of your total budget for video production insurance.
WHAT DO I NEED TO KNOW ABOUT HIRING AN INSURANCE BROKER?
You can’t obtain a video production insurance policy
without an insurance broker. Literally.
Whether you purchase short term production insurance
through a website or go in person to a brokerage house, there’s always an
associated insurance broker at the end of your deal.
However, purchasing an insurance policy is not unlike
hiring a real estate agent: you can only have one broker at a time.
For this reason choosing the right broker is very
important. Your policy, its coverage, and overall rate will only be as good as
the agent securing it. Plus, you want to have someone you feel comfortable
turning to should a problem arise.
Online film and video production insurance companies like
Film Emporium, Supple-Merrill & Driscoll, Inc., Film Finance Inc., and
Frankel & Associates (to name a few) all offer agents who can talk on the
phone and over text.
DOES IT HAVE TO BE AN ENTERTAINMENT INSURANCE BROKER?
Yes.
Make sure that your insurance broker is an entertainment
insurance broker, specializing in entertainment or production policies,
specifically.
Entertainment insurance brokers understand production
policies and know how to best “package the policies” to give you the most
coverage at the best rate.
If they advertise policies for business, renter, auto or
other insurance they are most likely not an entertainment insurance broker.
WHAT SHOULD I SAY TO AN ENTERTAINMENT INSURANCE BROKER?
It is highly important that you actually speak to a broker
to ensure that you have presented all the details of your production or
production types.
Make sure to tell your broker how your production company
functions and what kind of project you’re producing.
Working on a movie about dogs? Get specific animal
insurance. Working on a pyro-heavy explosion fest? Take out life insurance
policies. Working on a movie about a talking gun? Why?
Make sure you are fully covered for your specific filming
activities. Nothing is worse than having an serious issue on-set, that could
have been covered by your policy… but isn’t. After the fact, the difference in
cost will be exponential.
WHAT ARE CERTIFICATES OF INSURANCE 24/7?
Film, TV, commercial and independent productions function
very differently than other business that are also covered by insurance. In our
world, things happen after-hours and on the weekends. And everything needs to
happen quickly… like in the next 5 minutes.
For that reason, you need to be able to issue COIs
(Certificates of insurance) at any time yourself.
If your broker does not have this option they are most
likely not primarily an entertainment insurance broker. Not being able to
provide an insurance cert to a vendor or crew member immediately can make or
break a shoot.
PRODUCER'S PRO TIP:
All of the top entertainment insurance brokers are listed
on Variety 411 and NY411. Make sure your broker can handle international
policies as you never know when you will be shooting outside of your home
country. If you’re shooting in the US make sure your policy is active in all
states.
What is general liability?
Although film production insurance policies vary widely,
you’ll always need general liability.
General liability covers bodily injury and property damage
that occurs during the course of filming. Cast and crew are exempt from this
and covered separately through a workers compensation policy.
This coverage is required by most city/county permitting
offices in order to obtain a permit.
LOCATIONS:
When tabulating general liability, remember that
locations, including sound stages, require COIs.
The standard minimum policy is 1 million dollars, and when
the location is open to the public or sells tickets it quickly jumps into a 5
million umbrella. The umbrella covers the possibility that more than one person
is injured in the facility during filming or live shows.
WORKING VEHICLES:
Let’s say a crew member is driving the grip truck and gets
in an accident. The video production insurance policy will cover the incident
without involving anyone’s personal car insurance policies.
Do you have an owned sprinter or grip truck that is used
for production? Will you be renting production trucks, picture vehicles, camera
cars or moho and honeywagons? These considerations all fall under the general
liability section of your film production insurance.
Pro tip: Make sure that drivers of any working vehicles,
i.e. the grip truck, are paid workers and not interns or volunteers. They need
to be booked at minimum wage (at the least) to access coverage in the case of
an accident.
WHAT IS EQUIPMENT COVERAGE?
Most film production insurance policies start with
coverage for rented and owned equipment, such as the camera, grip and lighting
gear.
Most rental houses for professional production gear
require 250k -500k minimum for rental equipment. Regardless of what is actually
rented.
How do I determine my coverage areas?
A coverage area is where your film insurance policy takes
effect. If you’re purchasing short term production insurance, just opt for
coverage wherever your shoot is taking place.
If you’re purchasing an annual policy, however, it is
important to make sure your coverage areas include anything you might need.
If you are purchasing a domestic policy (US), are you
covered in all states? If you are purchasing international coverage, are you
covered in the areas where you most often work or shoot?
You can always add coverage for an additional fee, but it
is most cost effective to broaden coverage when securing the original film
insurance policy.
WHAT IS WORKER'S COMPENSATION?
Workers compensation protects you should something happen
to your employees on the job. It’s important to go over how you are covering
crew (employees) and independent contractors.
YOU NEED A WORKER COMPENSATION POLICY IF
·
You work as
an independent contractor or freelancer…
·
You are paid
full rate no taxes withheld (from a provided invoice)…
·
You provide
the production with a w-9 for labor or labor & gear…
YOU WORKERS COMPENSATION POLICY
·
Can cover
your pay rolled cast & crew, 1099 freelancers and volunteers…
·
Can cover
your working crew in periods outside of general production…
·
Meet the
legal requirement of an independent contractor…
·
Protects you
from claims arising from injuries to your crew…
·
Provides for
you in the case of injury on the job…
·
Covers
medical costs, loss of work or death benefits if injuries occur on the job…
How do film insurance deductibles work?
Film production insurance deductibles function just like
auto insurance deductibles.
The most common deductible amount is $2500, meaning it’s
not worth taking out an insurance claim for an item valued at $500 or anything
under $2500. The lower the deductible the more expensive the film insurance
policy and vice versa.
Your deductible amount is often required by the vendor in
order to rent. If you use multiple rental houses this can add up quickly and
deplete your funds.
WHEN SHOULD I ADD-ON SPECIALTY POLICIES?
Remember that special circumstances can always be added to
an existing policy. These items can be added for ‘x’ amount of day or for the
remainder of a short term or annual policy.
·
Pyro (fire,
flash boxes, squibs, explosions, pyrotechnics effects)…
·
Stunts /
Falls (any stunts)…
·
Aircraft
Insurance (renting of helicopter or plane to film or transport crew)…
·
Aerial
Photography (shoot from helicopter, planes, balloons, gliders)…
·
Weapons (live
ammunition)…
·
Animals
(working animals)…
·
Water and
Underwater (filming on in or using gear underwater)…
·
Recreational
Vehicles (Motorcycles, ATV, Snowmobile, go-kart)…
·
Drones (UAV
used during filming)*…
·
*Not all
brokers can handle this new category…
WHAT IS ERRORS AND OMISSIONS (E&O)?
E&O insurance is required for any project that is
distributed for profit. If your film is sold or put on iTunes and there is an
issue with the content, E&O insurance will cover the harm caused by the
circulating product. All television, theatrically released films and
broadcasted programs require E&O insurance.
CHECK OUT FILM EMPORIUM‘S DEFINITION OR ERRORS AND
OMISSIONS INSURANCE:
Legal liability coverage, including defense costs, for
claims alleging unauthorized use of titles, format, ideas, characters and
plots; plagiarism and unfair competition. Also provides coverage for alleged
libel, slander, defamation of character or invasion of privacy.
If your project is being sold in any way, E&O
insurance might be for you. Check with your broker to determine, and while
you’re at it, check out this glossary of insurance terms.
POP QUIZ:
Do you work as an independent contractor on your projects?
Do you work as a DP, Gaffer, Key Grip, Production Designer or any other key
position that is not paid via payroll? Then you need workers compensation
insurance.
Answer: If you work as an independent contractor you need
a worker comp policy.
WHERE SHOULD I STORE ALL MY CIOS?
As your production draws to a close, you’re going to have
a lot of COIs lying around. Make sure to keep all the COIs issued for the
production in the wrap binder.
Sources,
References & Credits: Google, Wikipedia, Wikihow, Pinterest, IMDB, Linked
In, Indie Wire, Film Making Stuff, Hiive, Film Daily, New York Film Academy, The
Balance, The Numbers, Film Maker, TV Guide Magazine, Media Match, Quora, Creative
Skill Set, Investopedia, Variety, No Film School, Daily Variety, The Film
Agency, Best Sample Resume, How Stuff Works, Career Trend, Producer's Code of
Credits, Producers Guild of America, Film Connection, Entertainment Careers, Adhere
Creative, In Deed, Glass Door, Pay Scale, Merriam-Webster, Job Monkey, Studio
Binder, The Collective, Production Hub, The
Producer's Business Handbook by John J. Lee Jr., Film Finance Inc., Allen
Financial Insurance Group, Barrow
Insurance Group, Film Bonds, Studio Binder
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