What Does a Film Insurance Broker do for you?
A film insurance broker helps identify the risks associated with your film production whether it be a: film production, TV series, Documentary, Webisode, Music Video and so on.
Once the risks are identified, they can be transferred to an insurance company for a fee or premium. The film insurance broker negotiates the lowest possible premium based on past experiance.
Unlike insurance agents - who work for the insurance company - Insurance Brokers work for the client not the insurance company. Insurance brokers are recognized by law as experts in insurance. Insurance Brokers in Canada must pass a series of exams in order to be licensed. Insurance Brokers owe a higher duty of care to their clients than an Insurance Agent. Brokers represent the interests of their clients, not the insurance companies. They offer professional advice in arranging insurance on behalf of their clients.
Since insurance brokers are considered under the law as professionals they are responsible for their actions and can be sued for professional negligence if their advice is deemed to be faulty. All licensed brokers therefore need to carry professional Errors and Omissions coverage.
The many roles of a broker include:
- Negotiate with the insurance companies on behalf of clients. There are 240 insurance companies in Canada. An Insurance broker must be familiar with what these companies offer so that the best price and coverage is procured for the client.
- Brokers facilitate claims - Because the broker works on behalf of the client, it is their duty to ensure that insurance companies pay the full amount of the claim that the client is entitled to.
- The broker acts as a conduit for communication between the insurance company and the client. This includes providing certificates for banks, bonding companies and locations to evidence coverage allowing banks to release funds to the client, locations to be locked by the location manager and equipment to be rented.
- Advise clients on ways to limit potential liabilities during production.
- Review scope of the client's existing insurance policies to reveal gaps or deficiencies in the coverage.
- Comprehensive examination of the clients production to assess the amount and type of insurance required. A broker will also help the client understand what coverage they have and do not have any limits to the coverage.
It is important to deal with a broker that understands the specific language shown on Film Production Policies. For this reason, it is strongly suggested that you seek out a broker that specializes in this type of coverage.