The Different Types of Insurance for Film Production
Posted on: Nov 07, 2024
Photo Credit: Grusho Anna // ShutterstockFilmmaking is a collaborative process with so many moving parts. There are plenty of risks with each element, and insurance is a necessity to protect your expensive gear, the people involved and your investments.
This article will explore the various types of insurance available for film production and what each policy typically covers.
1. General Liability Insurance
General liability insurance is something any business should have, and it’s no different for film productions. It’s different than typical business insurance as most business providers only offer videography and photography insurance for companies completing video services for a client. Movie production is usually excluded in those policies. General liability protects the production company from claims for bodily injury, property damage and personal injury related to people or items not owned or employed by the company.
For example, if someone passing by your set or a visitor is accidentally injured on-set, or your art department or crew damages a location, general liability insurance would step in to handle legal fees, medical costs or settlements.
2. Workers’ Compensation Insurance
Most states require companies to carry workers’ compensation insurance if they are hiring employees or crew members. While it may not be required, the company can elect for the policy to sub-contractors. This insurance covers workers when they are injured on the job. Accidents are not uncommon in fast-paced workplaces, and it can make a tremendous difference when there is workers’ compensation to cover the injured employee’s medical expenses, rehabilitation costs and lost wages. It protects both the employer and the crew.
3. Errors and Omissions (E&O) Insurance
Errors and omissions insurance, sometimes called media liability insurance, is an insurance most distributors require a production to have. Distributors do not want to be liable once they release a film for potential claims related to copyright infringement, defamation, invasion of privacy or plagiarism.
Even with due diligence, a production might use copyrighted material (such as a song or image) without getting the proper clearance they need. The production might portray an individual or entity, like a company, in a way that the person or entity claims is defamation. E&O insurance would take care of the legal costs and any settlements or judgments that arise from these types of lawsuits.
4. Cast Insurance
Cast insurance is of real benefit to films that rely on star power for their funding, and it is an option to protect productions in case a primary cast member can’t fulfill their agreement due to illness, injury or death. The talent is often one of the most valuable assets in a film, and the loss of a star can cause a production to grind to a halt.
This policy covers the unfortunate need and cost to reshoot scenes, delay the production or recast the role. That means that if a key cast member is sick and only needs time to recover, the insurance would cover costs with extending the shoot schedule and compensate crew for the downtime.
5. Production Equipment Insurance
While general liability covers damage to locations or items your crew may damage belonging to someone else (such as rentals), production equipment insurance covers the physical damage or loss of the equipment used in film production such as cameras, lighting gear and sound equipment. You might use this insurance if you have equipment stolen, or some of it becomes damaged due to weather or accidents. This is a type of insurance independent filmmakers who can’t afford to replace their gear should especially consider. Shooting on location heightens risk related to theft and damage.
6. Props, Sets, and Wardrobe Insurance
Productions can sink a lot of money into their art department, and this insurance covers those custom-built sets, props and costumes. Like gear, these items may be vulnerable to theft or damage due to accidents, or mishaps like fire or weather. The policy would cover repair or replacement, which can be a huge relief when you have expensive items that are custom made that would need to be recreated.
7. Negative Film and Faulty Stock Insurance
Even though we now live in a digital world, some filmmakers still work with film stock, and this insurance is actually related to loss or damage to the negative or digital files. It will cover the costs to reshoot the lost footage.
It can come in handy when there are errors in the processing of negatives, or when you have faulty digital media. Even digital media has technical errors related to memory cards or drives, and this policy will cover the cost to reshoot, including cast, crew and location fees.
8. Inland Marine Insurance
While equipment or prop insurance covers these items while in use, inland marine insurance covers items that are in transit. A production might be traveling between locations or shipping equipment to a remote site.
For instance, if equipment or set pieces are damaged when the truck carrying them is in an accident, inland marine insurance would cover the cost of repairs or replacement. This insurance is crucial for productions that involve frequent travel or location changes, where the risk of damage during transport is heightened.
9. Automobile Insurance
Ever worked for a set that required you to drive their rented vehicles? It’s probably because they have vehicle coverage. This insurance covers vehicles used to transport cast and crew, or vehicles used on camera as part of the actual scenes that are owned or rented by the production.
The policy covers any damage or injuries caused by the production’s vehicles, as well as damage to the vehicles themselves in accidents or mishaps, such as stunts gone wrong.
10. Completion Bond
This isn’t a traditional form of insurance, but it’s worth mentioning. A completion bond acts as a guarantee that a film will be completed on time and within budget. This is particularly important to independent filmmakers who are seeking financing. A completion bond ensures investor money is protected in case of difficulties.
A third-party company watches the production’s budget and schedule. If the film runs over budget or faces delays, the company will take over management of the production and make sure the film is completed.
These are the main types of insurance a production may want to have to protect their investment and people. There are other types you can look into such as animation insurance, post production insurance, or even liquor liability when a production involves alcohol. It may be tempting to fly by night without any insurance, but filmmakers who do are putting themselves, their investors and their people at risk.
Jessica Mathis (AKA Divinity Rose) is an award winning screenwriter/performer/producer from Louisville, Kentucky. She is the CEO of She Dreams Content Development and Production, which focuses on female forward projects in comedy, docustyle and genre entertainment.
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