Film and television production firms have long relied on some form of entertainment insurance to help protect against the losses arising from producing their works.
FILM PRODUCTION INSURANCE
Film and television production firms have long relied on some form of entertainment insurance to help protect against the losses arising from producing their works. Film production insurance covers the unusual and unique risks associated with filmmaking, helping production companies to protect their assets and personnel when an incident occurs. This specialized insurance has many components, which includes coverage for Cast, Negative & Faulty Film (HD Video included), Props, Sets, Wardrobe, Miscellaneous Rented Equipment & Owned Equipment, Extra Expense and Third Party Property Damage.
Comprehensive insurance policies offered by leading specialty insurers often include third-party property damage coverage, commercial general liability protection, and errors and omissions coverage for producers, developers, and directors, the cornerstones of a successful film or television production. Workplace injuries remain common in all markets, but the added expenses of a serious injury or death during a film or TV production cannot be understated. With adequate insurance coverage in the form of film production insurance, production companies can ensure that their assets are protected from loss.
At some point before the start of production, everyone that participates in the production will need to sign a contract if the project is going to get a commercial release. That is because distributors require E&O insurance (errors and omissions insurance), and before the insurance company will agree to cover a film the insurer will require that all production legal has been completed.
- …Errors and omissions insurance is a form of professional liability insurance.
- …E&O insurance protects companies and professionals against claims of inadequate work or negligent actions made by clients.
- …Anyone who provides a service requires E&O insurance including financial services, insurance agents, doctors, lawyers, wedding planners and especially Film Production Companies.
E&O insurance companies are the key to distribution, because without it, any reputable distributor will not take the risk of distributing the project. Of the items that an E&O insurance company requires, one is complete paperwork for every participant in the film, including for the “chain of title” for the project, and the other is an” opinion letter” from an entertainment lawyer specifying that the paperwork for the film is complete and that the production company is the sole owner of the project.
All Film Production Insurance Is Not Created Equal.
Every film is unique, and there are a number of risks associated with different filming formats, techniques and even locations. Some productions require the use of highly technical and expensive equipment and others can be produced with little more than a compelling script and a video camera. These and other variables will affect your film insurance rates. If you produce films full time, your needs will be different from those of someone who does a one-time project and only needs short term film production insurance.
Regardless of the types of projects you do you, will need the right solution to protect yourself from liability risks and protect your equipment investment from accidental breakage, theft, and vandalism.
Your film production insurance plan will need to include a number of different coverage types, such as:
- General liability: This portion of your policy will provide coverage for injuries on the set to anyone associated with the production besides direct employees, as well as any damage your production may cause to other people’s property.
- Equipment protection: This coverage will provide protection for your valuable photographic and digital recording devices.
- Professional liability: Also known as “errors and omissions” or “E & O” insurance, this coverage can be particularly important to the film industry and protects you against risks like libel, invasion of privacy, copyright infringement, and defamation of character.
- Workers compensation: Provides health protection for staff employed by the production company in the event of work-related injuries or illness. You may be required to carry this insurance, depending upon the nature of your business, how many people you employ and your state requirements.
You may wonder what kind of policy to get. Once again, the type of policy you want relies on the type of film you plan to make. Obviously, if you are making a short documentary film, the type of policy you want will differ from a filmmaker who aims to make a feature-length film.
There are basically three types: short-term, long-term and annual.
- Short-term policies are used for single production, such as a commercial.
- Long-term policy is used for several projects during a longer period of time.
- Annual policy is reserved for ongoing projects, such as documentaries, industrial, commercials and education (DICE). DICE policies typically last for one year.
How much does Film Insurance Cost?
Unlike many other forms of commercial coverage, movie making coverage needs to cover some unusual risks.
Whether you produce films for a living full time or just need short film insurance for a one-time project, you will need assistance from a knowledgeable underwriter who can advise you on the best coverage options within your budget.
While every project and policy are different, ballpark premium pricing for short term production insurance starts at or around $330.00(when we last checked in 2019) (commercial general liability of $2,000,000 policy limit). Higher limits, additional coverage and longer term annual coverage is also available. Please note each production application is separately quoted and priced.
FEDERATION PRODUCERS & VENDORS
The WORLD FILM FEDERATION lists the above solely as a convenience to Federation Members. WORLD FILM FEDERATION is not responsible for the content of any linked site. By listing a site, WORLD FILM FEDERATION does not thereby recommend, endorse, sponsor, support or approve of the site, nor of the contents of the site, nor of any statement, claim, assertion or representation made on the site. By listing a site, WORLD FILM FEDERATION does not thereby recommend, endorse, sponsor, support or approve of any product, service, publication, company, organization, or other entity or advertisement.
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