Film Production Insurance: Why it is Needed.

Posted by David Hamilton on Jan 11, 2010 9:28:00 AM

Film Production Insurance: Why it is needed.

Production insurance is vital to financing your project. Why is insurance needed for your production? Three basic reasons are:  legal, contractual and property protection.

LEGAL REASON

As for legal reasons, nearly every  location and financier requires that a production company/filmmaker carry some form of insurance. A good example of this is the need for general liability insurance to cover property damage and and bodily injury to third parties. A building owner will want to be protected for any damage caused to the location. The building owner would also want to be protected from any lawsuits brought forth from a passerby that tripped on electrical cables or from injuries sustained by gear that falls off a roof.

CONTRACTUAL REASON

The contractual reason is simple. If you are under contract with a broadcaster or distributor, most likely the contract will require you to have insurance coverage before you can access your payment draw-downs.

PROPERTY REASON

The property protection covers you against damage and loss to assets like production equipment that you are contractually responsible for as set out in your rental agreement with the rental company. 

TYPES OF FILM POLICIES

The type of policy you need depends on the type of project you plan to make. If you are making a short music video, the type of policy you want will differ from a filmmaker who aims to make a feature film. There are basically three types: short-term, annual DICE Insurance and annual.

  • Short-term policies are used for single production, such as a commercial.
  • A DICE Insurance Policy is used for several projects during a year period. DICE stands for Documentaries, Industrial Films, Commercials and Educational Films.

Try to give your broker three to five days to arrange the coverage for you: this will ensure your broker has enough time to obtain the best price and coverage available in the marketplace.

The three policies you need to consider for any film production are:

General Liability Insurance

CGL covers against damage to the filming location/space, and injury or harm to those present that are not working on the film.

Equipment Insurance

Equipment insurance covers any and all film equipment used in your filmmaking process and production. This policy will cover loss, damage, theft, etc. to your rented or owned equipment.

Errors and Omissions Insurance

This type of insurance protects against lawsuits alleging unauthorized usage of titles, copyrighted materials, ideas, formats, characters, plots, plagiarism, unfair competition, defamation and invasion of privacy. E&O insurance requires the counsel of an entertainment lawyer who will review your script, clearances and releases.

 

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 equipment insurance, Film Insurance, Film insurance broker, Film Producer's E&O Insurance, Commercial Production Insurance, Documentary Insurance, DICE Insurance, Industrial Films, Educational Film Insurance

Film Production Coverages Explained - Part 3

Posted by David Hamilton on Dec 8, 2009 8:53:00 AM

FILM PRODUCTION INSURANCE COVERAGES EXPLAINED - PART 3

FILM PRODUCTION INSURANCE COVERAGES

Some important liability coverages to protect your film production:

COMPREHENSIVE GENERAL LIABILITY

  • Covers against all sums that the insured shall become legally obligated to pay for bodily injury, property damage or personal injury arising out of the operations of the production company
  • Excludes liability arising out of the use of motor vehicles, aircraft or watercraft
  • Coverage limits range from $1,000,000 to $25,000,000

NON-OWNED AIRCRAFT LIABILITY INSURANCE

  • Covers the insured against legal liability arising out of the use of non-owned aircraft

NON-OWNED WATERCRAFT LIABILITY INSURANCE

  • Covers the insured against legal liability arising out of the use of non-owned watercraft
  • Coverage can often be extended under the Comprehensive General Liability Policy

Related:

Part 1

Part 2

Topics: Film Insurance, Commercial Production Insurance, Documentary Insurance, DICE Insurance

Film Production Insurance Coverages Explained - Part 2

Posted by David Hamilton on Dec 7, 2009 3:30:00 PM

FILM PRODUCTION INSURANCE COVERAGES EXPLAINED - PART 2

FILM PRODUCTION INSURANCE COVERAGES

What follows are four more coverages that every producer needs to consider when creating a film project: 

EXTRA EXPENSE INSURANCE

  • Covers expenditures that the insured may incur in the event of interruption, postponement or cancellation of production as a result of damage to, or destruction of, property or facilities

OFFICE CONTENTS INSURANCE

  • Covers property usual to the office occupancy of the insured on an "all risk" basis against all risk of physical loss of or damage to said property

MONEY & SECURITIES

  • Covers against direct losses caused by destruction, robbery, wrongful abstraction or computer theft of money and securities
  • Coverage often includes loss or damage to the property or premises resulting from robbery or safe burglary

COMMERCIAL VEHICLE PHYSICAL DAMAGE INSURANCE

  • Covers hired automobiles which are property of others for which the insured is liable and which are lost, damaged or destroyed during the term of coverage while such property is used or to be used in connection with the declared production
  • Coverage is for physical damage to the vehicles and does not include third party liability coverage

Part 1 here. Part 3 here.

Related: Film Insurance 101 book

Topics: Film Insurance, Entertainment Insurance, Commercial Production Insurance, Documentary Insurance, DICE Insurance

Film Production Insurance Coverages Explained - Part 1

Posted by David Hamilton on Nov 23, 2009 10:59:00 AM

FILM PRODUCTION INSURANCE COVERAGES EXPLAINED - PART 1

FILM PRODUCTION INSURANCE COVERAGES

There are several coverages that a producer needs when insuring a film project (by film , I also mean HD and video) :
 

CAST INSURANCE

  • Covers against extra expenditures caused by death, sickness, disability or kidnapping of insured cast members, director, DOP, or anyone else designated under cast coverage

NEGATIVE FILM & VIDEOTAPE INSURANCE

  • Covers against extra expenditures caused by loss of, damage to, or destruction of Negative or Tape or Hard Drive on an "all risk" basis, excluding coverages outlined under the Faulty Stock, Camera & Processing coverages.

FAULTY STOCK CAMERA & PROCESSING INSURANCE

  • Covers against extra expenditures caused by damage to, or destruction of negative or tape caused by faulty stock, faulty camera, faulty processing and accidental erasure or exposure to light

PROPS, SETS & WARDROBE INSURANCE

  • Covers props, sets, scenery, costumes, wardrobe and similar theatrical property on an "all risk" basis against direct physical loss or damage to the rented property.

MISCELLANEOUS EQUIPMENT INSURANCE

  • Covers cameras, camera equipment, sound and lighting equipment, grip equipment and similar miscellaneous equipment on an "all risk" basis against direct physical loss or damage .

PROPERTY DAMAGE LIABILITY INSURANCE

  • Covers against all sums the insured shall become legally obligated to pay because of loss of, injury to, or destruction of property of others in the care, custody or control of the insured
  • Excludes property covered under miscellaneous equipment and props, sets and wardrobe coverage

I will explain more coverages in Part 2 | Part 3.

Related: Film Insurance 101 book

Topics: Film equipment insurance, Film Insurance, Entertainment Insurance, Film Production, Commercial Production Insurance, Documentary Insurance, DICE Insurance

What is a DICE Policy? - Let Front Row Tell You

Posted by Meghan Stickney on Oct 29, 2009 4:20:00 PM

DICE INSURANCE: DOCS, INDUSTRIAL, COMMERCIAL, EDUCATIONAL FILMS

This is a great insurance policy to save you time and money if you anticipate multiple projects in the next 12 months.

Click here to apply online

Excludes*:

- Feature Length or Theatrical/Television Release over $150,000 budget

- Television Series or Episodes

- Productions with shooting periods +90 Days

(*unless specifically endorsed and in some cases an additional premium applies)

  • A DICE policy provides prearranged coverage for a year for your office and all of your productions--except for features and series with budgets over $150,000.
  • We will give you blank certificates for the year, allowing you to lock locations and rent equipment on the fly.
  • General Liability is less expensive with an annual policy as you only pay for it once per year and it covers all of your projects in a 12 month period. Less work and cost than arranging coverage for each of your projects.

A typical package for a Canadian producer with up to $250,000 in annual productions costs is as follows: 

 COVERAGE  
 LIMIT  $  
 Negative Film/Videotape   250,000
 Faulty Stock, Camera & Processing     250,000
 Props, Sets & Wardrobe  200,000
 Miscellaneous Equipment Rented  750,000

 Miscellaneous Equipment Owned (additional premium will apply)

 As Required
 Property Damage Liability  2,000,000
 Extra Expense  200,000
 Office Contents  100,000
 Accounts Receivable  25,000
 Money & Securities  25,000
 Physical Damage to Vehicles  150,000 per vehicle 
 General Liability  2,000,000

 
Canadian DICE Production Insurance Package Costs:

  • A deposit premium starts at $1,500.
  • Your Final Gross Productions Costs for all productions undertaken during the term of the policy are reported to the Company within 30 days following the expiration or termination of coverage.
  • The Annual Earned Premium is computed by applying the rate per $100 of actual gross production costs established at the inception date of the policy.
  • A minimum premium of $1,500 will apply regardless of the terms of coverage.
  • Premiums can be financed over the year to help your cash flow.
  • Rating will vary based on the Film/Video ratio, types of productions and number of annual productions estimated.
  • General Liability coverage (to cover locations against property damage or bodily injury caused by your crew) is extra.  For example, a $2,000,000 limit would cost $750 annually; a $500,000 limit costs $1,000 annually.

 Click here to apply online

 Call or email us for a quote, a description of coverage  and further information.

Related BLOG Posts:

DICE Insurance Policies: Annual Protection for Multiple Film Projects

DICE vs. SHORT SHOOT

DICE vs. DigiGear

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 equipment insurance, Entertainment Insurance, Film insurance broker, Commercial Production Insurance, Documentary Insurance, DICE Insurance, Industrial Films, Educational Film Insurance