Umbrella Vs. Excess Liability Insurance Coverage for Film Production

Posted by David Hamilton on Jan 2, 2013 9:33:00 AM

Umbrella Vs. Excess Liability Insurance

A typical production company will purchase liability insurance to provide coverage for claims relating to third party bodily injury and/or property damage caused by the production’s activities. As the majority of production companies will use vehicles on/off set, along with mobile equipment, watercraft and/or aircraft, they must also consider liability protection for these exposures too.


Whichever type of liability policy or policies are selected by a production company; there is a “primary” layer of coverage.  Depending upon the limit of the primary general liability coverage, a production company may wish to purchase additional limits of  protection: a filming location may require 10mil or more of coverage although 5mil is a common limit of coverage in Canada.

This additional layer of liability coverage  is called umbrella  or excess coverage.

Either Excess or Umbrella coverage is triggered when the primary protection’s limits have been breached, i.e. the underlying policy limit is exhausted.

Theoretically, an Umbrella Policy supplements it’s excess coverage to  include miscellaneous and unidentified loss exposures that are not covered by an underlying policy.  This is an advantage of an umbrella liability policy. Since there isn’t a source of primary protection for these exposures, a form of high deductible, called a self-insured retention, is applied to such losses.

An Excess Policy does NOT provide broader coverage; it only serves to supplement whatever coverage exists in the primary layer.  It’s becoming increasingly common for such coverage to be provided on a Following Form basis.  These forms are written so that they track the coverage, exclusions, and provisions of the underlying policies.

Simply stated, an Umbrella Policy will provide additional protection for your production company with different coverage that may not be in your underlying policy. An Excess Policy will further protect your production company by adding extra protection onto the limits of your underlying policy.

If you seek additional coverage for your production company, be sure to pay attention to what is stated in the form. The term umbrella may be used even when the form does not provide true umbrella coverage. For additional information relating to the above, please contact Front Row Insurance Brokers.

RELATED LINKS:

Film Insurance 101 & How to Protect Your Film Project

Film Production Insurance: Why it is needed

Pre-Production Insurance

Film Production Insurance

How the Premium is Determined

Short Film Insurance

DigiGear Insurance

Props/Sets/Wardrobe Insurance

E&O Insurance

DICE Insurance

Third Party Property Damage

Crew Vehicles

Umbrella Vs. Excess Liability

Commercial General Liability

Negative Film / Videotape and Faulty Stock

Workers Comp

Cast Insurance

Extra Expense (EE)

Foreign Locations

Claims

Topics: Film Production Insurance, Entertainment Insurance, Film insurance broker, Entertainment Insurance Broker, Film Production Insurance Premiums, Front Row Insurance Brokers, entertainment package insurance

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