Film Production Insurance: How the Premium is Determined

Posted by David Hamilton on Jun 21, 2010 2:46:00 PM

Film set
FILM PRODUCTION INSURANCE: HOW THE PREMIUM IS DETERMINED

Usually the cost of film production insurance is determined by charging a pre-determined rate against the net insurable budget of the production. The net insurable budget is calculated by removing those items out of the gross budget that the client does not want to insure (i.e., Unit Publicity, Insurance, and General Expense). The film insurance rates will vary from production to production and depend on criteria such as:

  • Type of production (i.e. Feature vs. TV series)
  • Inclusion of any stunts or special effects
  • Any work in or around water
  • Aerial work
  • Locations outside Canada/US

Most of these factors will cause the film insurance premium to increase. The rate from the insurance company is applied against net insurable budget to determine the final premium. The number of episodes and length of production rarely have an impact on price. The only time this would have an impact is if it were a very short shoot and we could offer a short term policy. This type of policy would offer very limited coverages and would usually only offer coverage for 7 days or less.

In addition to the rate and net insurable, the Insurance Companies have a minimum premium that they have to charge for a policy to ensure they can cover all of the administration costs of issuing and servicing the policies. Their minimum premium threshold might cause two difference projects which have different budgets, to still have the same premium. This is usually the case in lower budget projects. The Insurance Company is stuck charging a minimum premium as they have to absorb the same administrative costs no matter what the budget of the production.

Related Post: FILM PRODUCTION INSURANCE PREMIUMS: ONE WAY TO SAVE MONEY

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 Insurance, Entertainment Insurance, Entertainment Insurance Broker, Film Production Insurance Premiums, Annual Film Insurance, Commercial Production Insurance, Documentary Insurance, DICE Insurance

Film Insurance Claims: What to Do When Film Production Stops

Posted by David Hamilton on Feb 27, 2010 12:48:00 PM

Insurance claim

FILM INSURANCE CLAIMS

Film Production Insurance claims can be settled quickly with a minimum of stress if the right steps are followed.

Front Row Insurance Brokers Inc. provides claims reporting, monitoring, and advocacy services for clients, including preparing and reviewing loss runs and developing claims procedures. We are a liaison between you and your insurance company or a third party adjuster. The primary goal is to provide you with knowledgeable, empathetic, fast service. In the event of a claim, please contact your account executive. 

Our services include designing and implementing claims reporting and handling procedures, monitoring losses to initiate necessary action on a client’s behalf, ensuring timely and equitable settlement of claims, and providing status reports on all monitored claims.

Your account executive will need to know:

  • Date of Loss
  • Description of Loss
  • Location and time of loss
  • Approximate amount of loss
  • Names and phone numbers of persons to be contacted

All incidences should be reported promptly. If you are not sure there is coverage, we can advise you. Most coverages have deductibles which are applied to each claim. Each loss or occurrence is determined to be a separate claim and subject to a separate deductible.

No loss is easy to endure, but there are steps you can take to speed the process of putting your operations back in order.

Whom Should I call first if I have a loss? Depending on the nature of the incident, or accident, call the authorities needed to assist you in an emergency: the police, the fire department or hazardous materials team.

Is it possible to take immediate action to make repairs if further damage to the property is likely? As long as the claim is covered, the reasonable cost of temporary repairs made to prevent further damage is money well-spent and, therefore, reimbursable, subject to all policy terms and conditions.

Documentation in the form of bills, receipts and photographs should be retained in order to verify damages and repair costs. 

What about Emergency Repairs? You may hire a contractor of your choice for emergency repairs. For a covered loss, we will discuss costs directly with your contractor and come to an agreement about costs when necessary. Again, all repairs will be made subject to all policy terms and conditions.

Once Emergency Repairs are made, what should I do next? Determine if any of your property is salvageable, and if you can continue your operations at this location.

Who is responsible for the settlement of my claim? My agent or broker, the contractor, the insurance adjuster? What is the relationship among all of them?

  • Our insurance adjuster is the person with whom you should deal with settling any claim.
  • The adjuster will evaluate the loss and, along with your agent or broker, explain coverage to you.
  • The adjuster will work with your contractor to agree on what repairs need to be done and proper costs of these repairs.
  • The agent or broker may assist both you and the insurance company in the processing and adjustment of the claim.

After any type of loss:

  • Take immediate steps to protect your property from further damage.
  • Photograph the damage, if possible.
  • Call your insurance agent or broker.
  • Obtain copies of any reports that were filed, such as police reports, fire department reports.
  • Retain any documentation to substantiate the claim.
  • Communicate frequently with the insurance company’s claim adjuster.
Front Row Insurance Brokers Inc. provides claims reporting, monitoring and advocacy service to clients. A claims coordinator is assigned and acts as a liaison between our clients and their insurance company or third party.
 
Our goals are:
  • Clients feel that their best interests are being served and that their claims are being actively managed.
  • Front Row Insurance Brokers' performance is technically sound and conducted in such a manner as to fulfill a professional role.
  • For every first party claim, the best settlement is obtained in the shortest possible time.
  • System and individual file records are maintained at a consistently high standard to ensure that they accurately reflect the current status of individual claims.

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: Short Film Insurance, Film Insurance, Film insurance broker, Entertainment Insurance Broker, E&O Insurance, Film Insurance claims, Annual Film Insurance, Documentary Insurance, DICE Insurance, Film Production Companies