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

Front Row Insurance Brokers announce merger with Globalex of Montreal

Posted by David Hamilton on Sep 23, 2013 5:31:00 PM

Canada's largest film insurance broker is created.


GlobalEx InsuranceVancouver,Canada - - September 23, 1013 -- Front Row is pleased to announce a merger with Globalex after five months of discussion.  Globalex is one of the largest specialized film insurance brokers in Quebec with 12 staff located in their Sherbrooke St office. 

The combined company is licensed and registered in every province and is the largest broker as measured by premium volume for each of the four major film insurance companies: Chubb, Premiere/Everest, Allianz/Firemans Fund and Travelers / St Paul.

"Our volume with the insurance companies gives us a competitive edge when negotiating coverage, premiums and claims settlements for our clients," says David Hamilton, President of Front Row based in Vancouver.

Front Row is an independent broker that works on behalf of producers to transfer the risks of filming to insurance companies for a premium charge. Should a claim occur, Front Row ensures that the production company receives the money that they are owed per the insurance policy.

Front Row also has offices in Toronto and Vancouver.

Tags: Entertainment Insurance, Film insurance broker, Film Production Insurance Premiums, Front Row Insurance Brokers, Canadian Insurance Broker, Canada Film Broker, film insurance underwriter, Globalex Insurance

How can Ingress & Egress Coverage protect your Film Production?

Posted by David Hamilton on Jan 3, 2013 9:44:00 AM

At first read, Ingress & Egress may sound like a type of leakage.  In the case of this Extra Expense (EE) sub-coverage though, it actually refers to circumstances which may arise where persons or property are unable to either gain access (ingress) or leave (egress) a building/location in order to continue work as required.  This coverage is similar in nature to the Civil & Military Authority EE sub-coverage, with the exception that the inability to access or leave the building/location in question is not decided by the authorities.

 As with other Extra Expense coverages, the sub-limit (sum insured) attributed to the sub-coverages is the maximum amount given for that sub-coverage, and all Extra Expense claims cannot exceed the policy Extra Expense maximum limit.

 The Fireman’s Fund Insurance Company (Allianz) defines Ingress/Egress in their insuring agreement as:

 “We will pay for loss due to your inability to access or leave a facility within your care, custody and control due to the closure, by other than a civil authority, of that facility’s access road, meaning a road that affords access into and out of that area within your care, custody and control, which is necessary to be used in connection with an Insured Production to which this Coverage applies.”

 EXAMPLES of losses/delay expenses covered by this Ingress & Egress coverage:732172 48635269[1] resized 600

-Road access to the studio the Insured company is renting is blocked because a sinkhole  has collapsed in the road.

-Your film director is unable to leave his hotel on time because the street in front of the hotel has large fallen trees on it due to a windstorm the previous night.

 NB: As with most other coverages, there are some standard exclusions that apply to Extra Expense coverages. Please see the policy wording for a full description of the coverage, or call a specialized film insurance broker such as Front Row Insurance.

Need help? contact david@frontrowinsurance.com.

 

Tags: Film insurance broker, Film Production Insurance Premiums, entertainment package insurance, Specialized film insurance broker

Umbrella Vs. Excess Liability Insurance Coverage for Film Production

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

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: david@frontrowinsurancebrokers.com

 

 

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

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 & Mechanical Devices / Articulated Set Safety

Posted by David Hamilton on Dec 10, 2012 9:42:00 AM

If a mechanical device or an articulated set is used in a production, the film insurance cost can be minimized if the production company ensures that:

1.            The device or set is capable of safely performing the functions for which it is used

2.            Workers operate the device or set in accordance with the manufacturer’s instructions, safe work practices, and the requirements of the Regulation

3.            The device or set is properly inspected, tested or maintained

If a production company requires that a mechanical device or articulated set to be created for a production, the production company is considered the supplier of that device or set. As a supplier, the production company must provide directions for the safe use of the device or set and must ensure that the device or set is safe when used as specified. Such directions could be developed in consultation with a qualified person such as a professional engineer.

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 Equipment, Film Production Insurance, Film insurance broker, Film Production Insurance claims, Film Production Insurance Premiums, Film equipment insurance, Film Gear insurance, Front Row Insurance Brokers, Film equipment insurance, Film production equipment insurance, Film insurance broker, Specialized film insurance broker

Film Production Companies and Camera Cars: Reducing the Risk

Posted by David Hamilton on Nov 26, 2012 5:42:00 PM

The camera car should  be engineered specifically for film and television production. The insert-camera car operator has the authority to suspend operation of the vehicle if they believe the vehicle is unsafe in any way.

General Guidelines – Follow these safety requirements when working with insert-camera cars:

  • Inspect the car – including the brakes, tires, electrical system, and towing equipment – before and after each use
  • Qualified, experienced workers must rig the car
  • When using an insert-camera car at night, install two portable tail lights on the towing vehicle
  • Do not transport crew members or equipment not directly needed for the shot sequence
  • Do not ride on the tow bar or on the exterior of the towed vehicle. Crew members may ride on a towed camera platform specifically designed for this type of work, as long as they use the necessary restraints and harnesses.
  • In most cases, insert-camera cars require a police escort during operation

 

A 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 contact us if you have any questions.

 

Tags: Film Insurance, Film Production Equipment, Film Production Insurance, Production Insurance, Entertainment Insurance, Film insurance broker, Entertainment Insurance Broker, Film Production Companies, Film Production Insurance claims, Film Insurance claims, Film Production Insurance Premiums, Specialized film insurance broker, Film Gear insurance, entertainment package insurance, Film insurance broker, film insurance underwriter

Substantial Film Insurance Savings in Vancouver compared to Los Angeles

Posted by David Hamilton on Nov 21, 2012 5:08:00 PM

It is much less expensive to  insure a film production in Vancouver as compared to Los Angeles - $30,000 less for a film budgeted at $5,000,000.. This is a substantial benefit to a producer that is considering Louisiana, New Mexico or LA vs Vancouver.

I have prepared an excel premium savings spreadsheet for you to share with US Producers to make them aware of yet another good reason to film in BC!

You can download the premium savings spreadsheet here

Please let me know if you have any questions.

I hope to see you at the Whistler Film Festival.

david@frontrowinsurance.com

   1 604 684 3456

 

                                Front Row Insurance                                           

                                                        

Tags: Commercial Production Insurance, Film Insurance, Film Production, Film Production Insurance, Entertainment Insurance, Film insurance broker, Entertainment Insurance Broker, Annual Film Insurance, Film Production Companies, Film Insurance claims, Film Production Insurance Premiums, Film Producers, Front Row Insurance Brokers, Film production offices, Canadian Insurance

Call Sheets Help Reduce Film Production Insurance Costs

Posted by David Hamilton on Nov 14, 2012 5:44:00 PM

Daily Call Sheets are a useful way to alert cast and crew to potential hazards for that day’s shooting schedule, and to inform them about which safety precautions they might need to take.  Film Insurance underwriters appreciate the risk management component of a call sheet and take this protocol into consideration when assessing the film insurance risk of a film production.

The following should be included on Call Sheets:

  • Scheduled stunts
  • Any special effects that will be used
  • Scheduled use of firearms
  • Potential hazards specific to the location
  • Any required personal protective clothing and equipment and how workers can get it
  • The name, contact number, and location of the first aid attendant
  • The location of the first aid kit or facility
  • The location of the nearest hospital or emergency facility
  • Any other health and safety concerns that the cast and crew need to be aware of

 

Safety guidelines should be attached to call sheets ie. If any special effects are to be used on the set, then a safety guideline should be attached specific to the type of special effects that will used. For example, if you are shooting near a thoroughfare with lots of traffic, it may be useful to add notes about this on the call sheet. What are the weather conditions like? Will the crew require special footwear or clothing for extreme temperature? What about sunscreen or hydration requirements?

Along this line of thought, it is important to include information such as the nearest hospital, along with any other emergency numbers that are specific to your location.

Have you thought about:

Putting up safety posters in common areas around the set location as a reminder to pay attention to certain hazards around the workplace and certain locations ie. Aerial filming etc.

A 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: Commercial Production Insurance, Documentary Insurance, Film Insurance, Film Production Equipment, Film Production Insurance, Entertainment Insurance, Film insurance broker, DICE Insurance, DICE Insurance, Entertainment Insurance Broker, Film Production Companies, Special Effects Insurance, Film Production Insurance claims, Film Insurance claims, Film Production Insurance Premiums, Specialized film insurance broker, Short Film Insurance, Short Film Production Insurance, Canadian Insurance Broker

Focus on Safety to Reduce Film Production Workers Compensation Claims

Posted by David Hamilton on Nov 13, 2012 2:06:00 PM

Film production companies have an obligation towards their cast and crew members, and must ensure their health and safety.

Production Companies should:

  • Develop and implement health & safety programs
  • Provide first aid equipment and emergency procedures for workers
  • Provide personal protective clothing and equipment for workers where required by the Regulation
  • Hire qualified, Competent Workers with the proper tickets and qualifications
  • Report all incidents involving medical treatments or lost time from injury or disease to the WCB.
  • Investigate all incidents, involving near misses
  • Ensure that cast and crew follow all WCB, municipal, provincial and federal requirements

 

Cast and Crew must W.A.I.F.

 

  • Wear personal protective clothing and equipment when required
  • Alert the supervisor or production company to potential hazards
  • Immediately report work they consider unsafe to their supervisor
  • Follow safe work procedures

 

Production Companies should form a joint health and safety committee that is responsible for identifying potential hazards or unsafe work practices and providing suggestions to improve conditions. The committee delegates should ensure that regular workplace inspections are carried out, and confirm that incidents are investigated. Above all, it’s important to consider and respond to heath and safety recommendations from the cast & crew.

Some examples of task allocations per position are:

Production Manager – Ensure that sets and locations are inspected for potential hazards and that potential hazards are eliminated or controlled.

Production Coordinator – Communicate the distribution of information to cast, crew members and various departments within the production company.

Director – Support assistant directors in their occupational health & safety responsibilities

Director of Photography – Make safety a priority when placing cameras and setting up lighting

Construction Coordinator – Ensure that the construction mill has a first aid facility stocked with appropriate supplies

Location Manager – Assess all locations for potential hazards (starting from the time of the initial scout)

SPFX/Stunt Coordinator – Hold safety talks immediately before any scheduled special effect or stunt

 

* 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 Production, Film Production Insurance, Entertainment Insurance, Film insurance broker, Entertainment Insurance Broker, Film Production Companies, Film Insurance claims, Film Production Insurance Premiums, Film Producers, Workers Comp insurance

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