This is a very brief outline of the insurance coverage that may be appropriate to protect the financial interests and liability exposures of individuals and business entities in the Entertainment Industry. Insurance for the Film Industry is placed in a very narrow market of insurers experienced in this highly specialized class of business. While many coverage are similar to those in use in other industries, there are a host of sophisticated specialty coverage that are peculiar only to the Entertainment Industry. The policy forms are among the most flexible available anywhere and are designed specifically around the needs of the clientele.

For feature films, the motion picture completion guarantor will require the placement of "standard" coverage and will also demand that insurance be arranged to protect against the unusual and/or extra-hazardous exposures that are customary to film production. Limits of liability, deductibles, and special terms and conditions are negotiated on each risk in accordance with budget and script requirements. The following will provide a summary for understanding the complexity of coverage required by the entertainment industry. Specialty coverage also exists for the on going film producer (Special Producer) who specializes in commercials, documentaries, educational, industrial films and the like.

Following is a brief description of coverage generally available. To get a complete description of coverage offered, you must refer to the actual insurance contract. For samples of the insurance contracts, check the specific coverage descriptions.

FILM PRODUCERS INDEMNITY (CAST INSURANCE)

This coverage reimburses additional or extra expenses incurred in the completion of principal photography, occasioned by death or disability (accident or sickness) of any scheduled artist, with various extensions of this definition; including costs resulting from abandonment of the film.

This is an "extra expense and/or abandonment" coverage. A medical examination of those persons to be insured is required within a specific (and short) time prior to commencement of the filming.

NEGATIVE FILM, VIDEO, AUDIO, RECORDING TAPE FLOATERS

Including Film Print Floaters, Print in Storage Risks, Transit Risks, Faulty Coverage and Accidental Erasure Coverage, and related covers. Covers physical loss of or damage to the negative film, videotape, etc., which basically is the extra expenses incurred in re-shooting or re-recording the lost or damaged material, or for aborted costs in case of abandonment.

The faulty coverage such as fogging, faulty developing and accidental exposure to light are basically excluded from the Negative Floater, but are added back as a separate coverage.

PROPS, SETS, WARDROBE AND RELATED PROPERTY FLOATERS

This is an "all risk," "worldwide," Inland Marine Floater that covers owned property and the property of others while used or to be used in connection with the insured activities for direct physical loss.

MISCELLANEOUS EQUIPMENT

The equipment covered by this floater may include Camera, Sound, Grip, Electrical lighting, Communications and Musical Instrument Equipment, Production Location Equipment (fixed and mobile), Recording Equipment, Theatrical Property, Recreational Area Equipment and all related property.

This is a "worldwide" Inland Marine Floater that covers owned property and the property of others while used or to be used in connection with the insured activities.

THIRD PARTY PROPERTY DAMAGE LIABILITY

This provides protection against loss to property of others while the property is being used or intended to be used in connection with a covered production.

EXTRA EXPENSE

This coverage reimburses the out-of-pocket expenses incurred as a result of interruption, postponement or cancellation of the production directly resulting from damage to facilities, or property which were intended for use in production.

ERRORS & OMISSIONS

This is a vital coverage to protect producers against copyright infringement suits that may be brought against them.

GENERAL LIABILITY

Film producers need this protection for their liabilities to others arising out of their operations. This contract protects them for their liabilities for unintentional bodily injury and property damage. Bodily Injury to Cast and Crew members is not covered here and should be covered by a Workers Compensation policy. This policy also excludes property damage to property involved with the production, automobile liability, large watercraft liability, & aircraft liability. These exposures can be insured with specific policies.

AUTOMOBILE

This coverage protects the film producer for their liabilities arising out of use of automobiles in their business. Physical damage to "hired vehicles" can also be insured. If the production company owns any automobiles, they must be specifically listed on the policy.

WORKERS' COMPENSATION

When filming in the United States, the film producer will be required to provide certain protections as defined by each state under their Workers' Compensation laws. This policy, when properly written, provides that protection. Some States provide work related injury coverage through a State tax. Many production companies use a payroll service that provides Workers Compensation coverage.

UMBRELLA LIABILITY

Provides additional limits above the General Liability, Automobile Liability, and Employer's Liability primary coverage. It also extends to other liability coverage if applicable. Most entities requiring proof of liability insurance require a $1,000,000 limit. Some locations require higher limits. These higher liability limits are provided by an Umbrella Liability policy.

COMPLETION BOND

A completion bond protects the project's investors, NOT THE PRODUCER. The bonding company guarantees that there will be completed project. If the producer fails to complete the project under budget, the bonding company can take the producer off of the project and hire someone else to finish it. The first proceeds from distribution will go to pay off any loss of the bonding company.

CONTINGENT LOSS OF REVENUE BOND

This form of insurance may not be around much longer. It is a fairly new coverage that offers a bank some protection if the production does not make enough money in distribution to repay a loan. The insurance (bonding) company requires a lot of information including distribution contracts. Once they are comfortable that the movie will make a profit, they will guarantee partial repayment of the bank loan. There have been several lawsuits concerning misrepresentations from the producer and the insurance companies refused to pay any losses.

GUILD (UNION) TRAVEL ACCIDENT

This coverage is required by Entertainment Guild contracts. The coverage is blanket and the terms are designed to meet with signatory requirements.

VARIOUS ODD COVERAGES

POLITICAL RISK & WAR RISK

ANIMAL MORTALITY

NON-OWNED AIRCRAFT LIABILITY

NON-OWNED WATERCRAFT LIABILITY

RAILROAD PROTECTIVE LIABILITY

CONTINGENCY COVERAGE

This is a broad category of coverage that is customized for the needs of the film producer. Generally, this is coverage that is put in place to protect the producer from losses due to circumstances beyond the producer's control. It can be written for protection from many causes, and is most often written to protect against adverse weather conditions that will prevent filming.