FILM PRODUCTION INSURANCE PREMIUMS: ONE WAY TO SAVE MONEY

Posted by David Hamilton on Jun 30, 2014 5:03:00 PM

One of the simplest ways to reduce film production insurance premiums is to lower the net insurable budget. The net insurable budget is the amount left once various budget line items are removed from the definition of insurable costs. The rate that is negotiated with the insurance company is applied against the net budget.

A typical rate might be .70 cents per hundred dollars of net budget depending on the current insurance market conditionspical rate

To illustrate, let us assume a cable TV movie needs to be insured with a budget of $2,000,000. Typically, we would remove the following lines items as costs that do not need to be insured: 

  1. Story and scenerio - we will assume this amount is $50,000 (I know writers are never paid enough).
  2. Post Production costs - we will assume this amount is $200,000

Claims that happen during post production are covered; however, due to the low risk of claims in post, the insurance company does not apply rate to post costs which is why it has been removed.

$2,000,000 less script and post costs leaves a net insurable budget of $1,750,000. $1,750,000 times the negotiated rate of .70 reults in a premium of $12,250. If the net were less than $1,750,000 the premium would go down.

Other budget costs to consider removing from our sample budget might be:

  1. Producer fees ($50,000)
  2. Development ($20,000)
  3. Publicity ($5,000)
  4. Overhead ($35,000)
  5. 50% of contingency ($25,000)

Removing the above items would lower the net insurable budget by $135,000 to $1,615,000 and would result in a premium savings of $945.

Once the budgeted cost is removed from the net insurable budget it is no longer insured in the event of a claim so producers need to be sure before removing from the insured budget.

As specialized film insurance brokers, we can help guide you to an appropriate net insurable budget for your film production.

Tags: Short Film Insurance Cost, Film Insurance, Entertainment Insurance, Film Production Insurance Premiums, film insurance premium

Firearms on the Film Set and Film Insurance

Posted by David Hamilton on Dec 14, 2012 11:00:00 AM

The cost for film Insurance for a production that uses firearms on set  can be minimized by following protocols that make the insurance underwriter comfortable. Insurance underwriters charge more when they are uncomfortable with the perceived risk.

Hire a good  firearms wrangler and ensure they follow these protocols for a safe set and the lowest film insurance cost:

1.            Take charge of all firearms and ammunition and keep an inventory of them

2.            Know all the requirements for handling, transporting, and storing firearms, ammunition and black powder

3.            Comply with all local, provincial, and federal regulations for firearms

4.            Be familiar with the specific firearms being used and their safety requirements. Know how to load, unload, dismantle, clean and reassemble the firearms

5.            Check firearms before and after each use

6.            Clean all firearms daily after use

7.            Load and Unload all firearms (if this is not practical, supervise the handling, loading, and unloading of firearms by designated, trained assistants) as follows:

  • Use the lightest load of blank ammunition necessary for the scene
  • Allow any actor who will be standing near the line of fire to witness the loading of the firearms

8.            Train actors and stunt performers in the safe use of firearms

9.            Take firearms away from actors and stunt performers between takes whenever possible

specialized film insurance broker is best able to present the risks associated with your film production to the film insurance underwriter to ensure you receive the best coverage and premium for your production.

Front Row Insurance Brokers are specialized Film Insurance Brokers. Please call us if you have any questions.

The above information is  based on WorkSafe – Focus on Safety – Safe Work Practices for Film and Television Production in B.C. (2001 edition)

 

Tags: Film Production Insurance, Film insurance broker, Hazardous stunts, Stunt Insurance, SPFX Insurance, Special Effects Insurance, Film Production Insurance Premiums, Front Row Insurance Brokers, stunt & SPFX, film insurance premium, Specialized film insurance broker

Film Production Insurance: Smoke and Fog Safety on The Film Set

Posted by David Hamilton on Dec 7, 2012 4:52:00 PM

To keep your film insurance premiums to a minimum utilize best practices when using fog and smoke effects on set.

The following substances are typically used to create smoke or fog:

1.            Propylene glycol, dipropylene glycol, butylene glycol, and polyethylene glycol

2.            Glycerin products

3.            Highly refined mineral oils

4.            Cryogenic gases such as carbon dioxide or liquid nitrogen

The choice of substance depends on whether it will be used indoors or outdoors, and whether the cast or crew will be exposed to it for significant period of time.

Film Production Insurance and Smoke Fog SafetyEnsure that you follow the manufacturer’s guidelines when using any of these substances. You should not alter the mix. Never heat substances above the temperatures specified in the guidelines.

Use the minimum chemical concentration for the minimum time necessary to achieve the desired fog or smoke effect. Check  the Regulation to see if the substance you are using has an exposure limit. Do not exceed exposure limits or reduce the oxygen concentration in the air below the normal level.

If necessary, have an occupational hygienist assess ways to reduce exposure and confirm that the oxygen concentration in the air is sufficient.

specialized film insurance broker is best able to present the risks associated with your film production to the film insurance underwriter to ensure you receive the best coverage and premium for your production.

Front Row Insurance Brokers are specialized Film Insurance Brokers. Please call us if you have any questions.

 

The above information is  based on WorkSafe – Focus on Safety – Safe Work Practices for Film and Television Production in B.C. (2001 edition)

 

Tags: Film Insurance, Film insurance broker, Hazardous stunts, Stunt Insurance, Film Insurance claims, Specialized film insurance broker, Front Row Insurance Brokers, stunt & SPFX, Film and HD Production Companies, film insurance premium, Film insurance broker, Specialized film insurance broker

Film and HD Production Companies and Watercraft Use

Posted by David Hamilton on Nov 22, 2012 4:32:00 PM

Use Boats safely to protect your cast and crew during your film production. The following suggestions will result in the best film insurance premium with the deductible:  

  1. Follow all boating regulations

  2. Ensure that the operator knows how to operate the boat competently and safely

  3. Make sure that the boat is seaworthy and that all machinery and equipment on board meets WCB requirements

  4. Know the boat’s load capacity, do not overload the boat

  5. Allow only essential cast and crew members on the boat. All others should remain on land.

  6. Do not smoke on board. Fire at sea is a serious potential hazard.

On the Boat

  1. Put equipment and tools in their place and use straps to secure tripods and other filming gear.

  2. Secure hatch covers so they will not slide or shift

  3. Keep passageways clear and do not block emergency exits

  4. Keep the deck clear of potential slipping and tripping hazards

Boats that are tied to the dock during filming and are not on the water under their own power will be covered under props/sets/wardrobes coverage on the entertainment package insurance policy. Talk to your film insurance broker if the boat is under power.  

Have emergency backups in place so you will be ready if anything goes wrong during filming.  

Emergency backups include:  

  1. A reliable communication system 

  2. Safety lines, nets, observers, or divers for filming in rivers or other bodies of water where potentially hazardous conditions exist (for example, swift currents, thick underwater plant life, or rocks) 

  3. Stationing emergency rescue workers downstream of having a safety boat nearby  

  4. A specialized film insurance broker is best able to present the risks associated with your film production to the film insurance underwriter to ensure that you receive the best coverage and premium for your production.   

Front Row Insurance Brokers are specialized Film Insurance Brokers. Please contact us if you have any questions.

Tags: Front Row Insurance Brokers, Film and HD Production Companies, film insurance premium, lowest film insurance coverage, entertainment package insurance, Film insurance broker, Specialized film insurance broker, film insurance underwriter

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