Understanding Production Insurance Coverage

Whether you’re producing a small documentary film or a full- fledged film shoot complete with cast and crew, you need to buy the right production insurance for your needs. Production insurance plans vary according to the various components of the production, however there are some common lines of coverage that apply to all types of productions that you need to understand.

Inland Marine Coverage

Inland marine coverage encompasses things such as damage to miscellaneous equipment, property, set and wardrobe, loss of negative film or videotape, and cast coverage. It’s important to make sure that both owned and rental equipment are covered. Third party property damage is also part of this coverage which means that you are financially protected if your production schedule is delayed or canceled due to damage or destruction of someone else’s property that you are using for your production.

General Liability Coverage

General liability coverage is needed for any type of production, because accidents can happen without warning and can result in financial loss up to and including you being sued. Make sure you have adequate bodily injury coverage as well as property damage coverage to ensure you are protected if a bystander or someone else is injured or their property is damaged during the production.

Errors and Omissions Coverage

Professional liability coverage, also known as Errors and Omissions insurance, is designed primarily to cover you from lawsuits that claim your production has used names or other material such as ideas, character names or musical compositions without permission. It also includes protection from claims of libel, slander or copyright infringement.

Worker’s Compensation Coverage

Worker’s compensation coverage provides income replacement protection and covers medical expenses in the event that any employees or volunteers are injured while on the production. This coverage is mandatory in all states so be sure that you ask your broker about this and that your policy meets legal requirements.

Floaters

Floaters are optional types of coverage that you can purchase to make sure that you are financially protected. Floaters can be purchased for personal articles such as jewelry, fine arts and other valuables. For some productions you may want to have a contractor’s equipment floater to cover damage to the equipment of any contractors you hire to work on the production.

Exclusions

Pay careful attention to any exclusions of your policy. Many production insurance packages specifically state that they do not cover films which include stunts or fight scenes, aircraft, watercraft or animals, as well as pyrotechnics, guns, blanks or squibs. If your production includes any of these things, be sure to ask your broker about other types of insurance that may be needed.

As you can see, purchasing the right insurance plan for your production can be a complicated and tricky process. The best way to make sure you have the right coverage for your production is to find a good insurance broker or agent who can help you create an appropriate production insurance package.