Film Crew on Location-breaks vase

Steel Structure Falls-Injures 3

Client Accused of Copyright Infringement

INSURANCE• Entertainment Industry has

unique needs that standard insurance companies may not understand or properly insure.

• Use a specialist that represents insurance companies familiar with your needs.

InsuranceLiability: you’re responsible for what

happensNegligence: failure to do what a

“reasonable” person would do

InsuranceWho decides when you’re negligent?

Insurancethe “reasonable person” (judge or jury)

not you

definition of negligence can be very wide and vague

Liability Insurance

This is essential insurance for all business

covers damage to property or injuries suffered by someone else for which you are held

responsible.

General LiabilityExamples:

•your dog bites the mailman delivering mail to your home business….

•your clumsy client scorches himself on your complimentary hot coffee…

Liability Insurance• Crucial for film/TV production, recording

facilities, live shows, etc.

• Cities or venues require a minimum $1,000,000 policy

• Freelancers may be required to have it to work at some places

• Banks may require it to receive a loan

Property Insurance

• Covers damage to the building where your office is located, as well as furniture and inventory

Key Types of Insurance

• Equipment Insurance – for the use of your personal equipment, as well as equipment you rent.

• Rental companies usually require proof of insurance (Certificate of Insurance) and some may insist they become “Additional Insured” on your policy.

Equipment Insurance

• Rate is based on value of equipment – $1 per $100 value of equipment– Does not include equipment taken on

location– Excludes wear and tear, intentional

damage, or an inherent defect– Keep list of serial numbers & receipts

off site

Key Types of Insurance• Floater Policy – covers equipment or

materials that leave your facility – $1.50 per $100 in USA– $2.00 per $100 worldwide

• Rental House Floater – covers equipment that you rent or loan to someone else who takes it outside your facility

Key Types of Insurance

• EDP – Electronic Data Policy – covers loss of hardware and/or software

Key Types of Insurance

• Extra Expense – helps cover additional expenses incurred due to an emergency or hazard.

--cost to reconstruct footage, recordings, and images due to acts of nature

--additional labor costs incurred to recover or reconstruct lost data due to computer virus

Key Types of Insurance

• Film Negative & Videotape - for re-shooting all footage lost or damaged, including paying for extra time for crew

• Faulty Stock, Camera & Processing - loss due to faulty materials or processing

Product Liability Insurance

• You need this if you make a product that could conceivably harm someone

Commercial Auto Insurance

Covers vehicles used for commercial purposes

Non-owned & Hired

Covers rental vehicles and employees using their own cars for business

Aircraft & Watercraft must be insured separately

Worker’s Compensationcheck with your state for rules

In Florida, if you have 4 or more employees,you must carry this insurance

It covers 100% of medical for injuries on the job and 60% of salary for life if disabled from injury

Worker’s Compensation

• Minimum annual policy is $450

• Rate is based on payroll– Film & Recording is $1.19 per $100 of payroll– Theatrical entertainer/musician is $4.30 per

$100 of payroll– Theatrical Lighting/Sound crew is $5 per $100

of payroll

Umbrella Policy

Provides additional coverage beyond the limits of your existing insurance

must have basic insurance in place to obtain this kind of coverage

Errors & Omissions Policy

“E & O” covers all court costs regardingintellectual property infringement,defamation or invasion of privacy

Required by film & TV distributors

Errors & Omissions Insurance• Important for service-based businesses• Protects you if you make a mistake or

neglect to do something that causes a client harm (doctor’s medical malpractice insurance)

Completion Bond

Most often used in Films and Game Projects:It guarantees the investors that the project will be completed and delivered (even if it goes over budget) or the investors will be repaid

Costs 3-5% of production budget

Completion Bond• They have experts who analyze all

the production documents (scripts, schedule, budget, contracts, etc)

• Their representative will constantly monitor production

• They typically “suggest” approved

producers, accountants, production managers, etc.

Completion BondIf the project goes over budget, they may• Loan additional funds to the producer

to finish the project (recouped from revenues)

• Take over the project and finish it themselves

• Stop production and repay the investors

Insurance

• Cast Insurance – covers expense to complete production due to the death, injury or sickness of performer or director

• Requires physical examination prior to being covered

Insurance

• Guild/Union Flight Accident – required by union contract for cast and crew members

• Props, Sets and Wardrobe – covers loss or damage during production

Film Production Insurance

• General Liability

• Worker’s Compensation

• Errors & Omissions “E & O”

• Completion Bond

• Film Production Package

Film Production Package• Cast Insurance• Negative Film and Videotape• Faulty Stock, Camera & Processing• Props Sets & Wardrobe• Equipment• Third Party Property Damage• Automobile• Extra Expense• Guild/Union Flight Accident

Game Design

• General Liability

• Worker’s Compensation

• Errors & Omissions

• Equipment, Property, Automobile

• EDP

• Extra Expense

• Product Liability

• Umbrella

Digital Media• General Liability

• Worker’s Compensation

• Errors & Omissions

• Equipment, Property, Automobile

• EDP

• Extra Expense

• Umbrella

Computer Animation• General Liability• Worker’s Compensation• Errors & Omissions• Equipment, Property, Automobile• EDP• Extra Expense• Negative Film & Videotape• Faulty Stock, Camera & Processing• Cast Insurance• Guild/Union Accident• Umbrella

Show Production• General Liability

• Worker’s Compensation

• Third Party Liability

• Equipment, Equip. Floater

• Rental House Floater

• Automobile

• Umbrella

Recording• General Liability

• Worker’s Compensation

• Equipment

• Equipment Floater

• Rental House Floater

• Property

• Automobile

• Umbrella

Entertainment Insurance

• Speare & Co.– www.speare.com

• Albert G. Ruben– www.albertgruben.aon.com