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.

Film Production Insurance: Why it is needed.photo credit: Unsplash

Production insurance is a vital part of any production. All productions should be insured to protect the producers from financial disaster resulting from property damage or liability arising from the production or post-production process. Even if the producer is willing to assume these risks, they will still need insurance for the following reasons:

CONTRACTUAL REQUIREMENTS

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

ACCESS TO LOCATIONS

In order to get filming permits from municipalities, provinces or the federal government, you will be required to provide evidence of Commercial General Liability Insurance. You will also normally be required to provide evidence of Commercial General Liability insurance to all privately owned locations that you require access to for filming.

RENTING PROPERTY

In order to rent production Equipment or Props/Sets/Wardrobe you will normally be required to provide evidence of your property insurance. This is a standard requirement in most rental agreements.

TYPES OF PRODUCTION POLICIES

The type and scope of insurance coverage 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 policy types: Annual, Short-Term project specific and Long-Term project specific policies

Short-term, project specific policies are purchased for lower budget, shorter term projects such as a commercial or music video.

Long-term, project specific policies are purchased for larger budget productions, with longer production and post-production periods such as Features or Television Series.

A DICE Insurance Policy is an annual policy used to insure more than one project during the course of a year. DICE stands for Documentaries, Industrials, Commercials and Educational Films. In addition to these types of productions, a DICE policy would also insure projects such as music videos, short films, public service announcements, etc.

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.

At a minimum, the three policies you need to consider for any film production are:

GENERAL LIABILITY INSURANCE

Commercial General Liability (CGL) insurance is designed to protect the production company against sums that they may become legally obligated to pay as compensatory damages for bodily injury or property damage to third parties arising out of the production company's operations. It includes the cost of a lawyer to defend you.

EQUIPMENT INSURANCE

Equipment insurance covers production or post-production equipment used in relation to the creation of your production. This policy will cover loss, damage, theft, etc. to your rented or owned equipment.

ERRORS AND OMISSIONS INSURANCE

Producer's E&O 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

What is a DICE Policy? Docs, Industrial, Commercial, Educational Films

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

DICE INSURANCE: DOCS, INDUSTRIAL, COMMERCIAL, EDUCATIONAL FILMS

DICE INSURANCE: DOCS, INDUSTRIAL, COMMERCIAL, EDUCATIONAL FILMSPhoto credit: Unsplash

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: 

Coverage

Limit of Liability

Deductible

Negative Film

$150,000

NIL

Faulty Stock

$150,000

$2,500

Props, Sets & Wardrobe

$50,000

$2,500

Rented Equipment

$250,000

$2,500

Owned Mobile Equipment

$20,000

$2,500

Owned Fixed Equipment

$20,000

$2,500

Extra Expense

$50,000

$2,500

Vehicle Physical Damage

$250,000 Per Vehicle

15%/$2,500 Min $10,000 Max

Office Contents

$100,000

$1,000

Third Party Property Damage

$1,000,000

$1,500

Money & Securities

$10,000

$1,000

Commercial General Liability

$2,000,000

$500

 

 

Premium: $2,695

Agency Fee: $100

Applicable Provincial Sales Taxes will apply

 
Canadian DICE Production Insurance Package Costs:

  • A deposit premium starts at $1,825. (subject to change)
  • 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.
  • 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