Production Insurance: The Basics

Who

The Applicant will become the Insured party and this could be a person or registered name or partnership, or a corporation which in most cases would be a single purpose company dedicated to the making of the program. Regardless of complexity, the applicant(s) need to be clear for insurance coverage to be set up properly. Our goal is to ensure all stakeholders owned or controlled by the applicant are identified and if need be added to the insurance policies.

What

Film Producers have numerous exposures to financial loss. Whatever risk production cannot afford to cover itself can be transferred to an insurance company.

Exposures also known as risks or perils fall into two broad categories, the first of these is known as general liability (GL) . GL insurance covers injury or damage to parties unrelated to production, these are described as third parties. Claims from third parties can severely impact production even to the point of bankruptcy.

The other category is property damage and includes business interruption such as a cast loss, described as the inability of a cast or crew member to fulfill their role, due to illness or death. Also loss, damage or disappearance of props, sets or wardrobe, miscellaneous equipment (camera, lighting and grip) and rented or borrowed motor vehicles, including drones (aviation) or boats (marine).

Package policies consolidate coverage and have been formulated to cover these risks. MPTV (motion picture and television) or FPR (film producer risk) are specialized for producers of scripted or factual content.

When

Depending on the production's risk profile, insurance may be put in place well before prep, at the start of prep, or just before first day of principal photography. Most stakeholders require coverage at the start of prep.

The following parties may require proof that a policy (or policies) be in place sooner; for example, a COI (certificate of insurance) is required for:

• Payroll - a GL before paycheques are issued

• Offices, studios or facilities - GL before access is granted

• Equipment and PSW - GL and Property cover before release of rentals

• Distributors - when the MG (minimum guarantee) is paid

• Broadcast and Cable Networks - when the license is granted

• Funders - before a drawdown is released

• Bonder - before the Bank financing closes

Why

All business has risk and content production is definitely no exception. After you identify the risks and eliminate, mitigate, or disclaim what you can, we can assist in transferring the remaining risks. Because someone could be injured or some property damaged, the stakeholders will insist on coverage being in place in a timely manner as required in the agreements.

Where

Entertainment insurance will cover productions anywhere in the world the creative process requires. Note that some territories may be excluded or the costs prohibitive.

How

Send us an email with the following to get us started:

• Synopsis

• Script

• Budget - latest draft

• Calendar, OLS or DooD

We pride ourselves in working at the speed of your production, so accordingly we will read the script, review all documents and help draft the application for you before obtaining quotes. While we take the time to understand the specific needs of each project our experience ensures there are no delays. Depending on the complexity of the production, we may ask for a call with you to discuss, however you can expect quick turnarounds and quotes in hand within one or two business days.