Everyone,
I thought this would be a great topic for this month's Cheat Sheet™. I asked Scott Taylor, one of the top production insurance experts in the country, to write a comprehensive article on the subject.
All The Best,
David Wells
President, Moving Picture Electronic Services
Production Insurance. Are You Covered?
 This is an abbreviated version of an article written by Scott Taylor, President of Taylor & Taylor Associates, Inc., and Taylor & Taylor, Ltd.
To read the entire article, click here.
Workers Compensation
This is the insurance that covers your cast and crew (employee) for injury while on the job, or such sickness or injury, which is job related. An employee is basically anyone under your direct supervision and control, regardless of the number of days worked for you, and regardless of whether or not you are withholding taxes.
Workers compensation will usually cover a U.S. employee working in a foreign country, but only for a short period time. Foreign Voluntary Workers Compensation should be used for U.S. employees working in foreign countries for longer periods of time, or if the employee is brought in from a foreign country.
For a foreign employee hired and working in their native country, work with the social insurance system in their country by way of payroll taxes, or purchase workers compensation and employer's liability in the countries that do not have social insurance. The best way to hire foreign employees is through a foreign production company that has secured the necessary coverage by way of payroll taxes, or a domestic workers compensation policy in that country.
It is suggested that all film production companies maintain a separate workers compensation policy even if they are using a payroll service. There will be an occasional person who the Workers Compensation Board will determine is in actuality an employee and whose payroll has not been put through the payroll service. In the event the employee who has not been paid through the payroll service is injured, you need to have had a workers compensation policy in force.
Statutory Disability Benefits
Covers employees for a statutory amount in the event they get hurt or sick while off the job. This is mandatory coverage in New York, New Jersey, Rhode Island, Puerto Rico, Hawaii and California. If you are using a payroll service, it is important to verify that they have secured this coverage.
Commercial General Liability
This policy basically covers trips and falls. It covers a film production company for bodily injury and property damage claims brought by others as a result of their negligence. In the event there is no negligence on the part of the film production company there is a $5,000 medical expense limit that will be available on a gratuitous basis.
It’s recommended that Foreign Commercial General Liability should be secured if you’re shooting outside the U.S. and Canada.
Non-Owned & Hired Automobile Liability
Protects against claims resulting from the use, loading or unloading of non-owned and hired automobiles. Coverage is limited to the United States, its Possessions and Territories and Canada. Coverage excludes physical damage to the automobile being driven. For that, you will need Hired Automobile Physical Damage, which protects against physical damage to hired automobiles. Coverage may be limited to the United States, its Possessions and Territories and Canada (Check your policy to determine the policy territory).
Some policies sold to production companies contain a maximum limit per automobile or truck of $125,000. This limit is inadequate when using certain cranes and camera cars. Therefore, camera cars and cranes are best covered under the Miscellaneous Equipment or Hired Vehicle Physical Damage section of a Production Package policy.
If you’re shooting outside the U.S. or Canada, it’s recommended to secure Foreign Non-Owned & Hired Automobile Liability and Physical Damage.
Film Production Package Policy (Usually Worldwide)
This policy includes:
- Negative Film & Videotape - Covers the actual cost to reshoot the film as a result of fire, theft, water damage or lost film. There is no coverage for weather days during the reshoot.
- Faulty Stock, Camera & Processing Errors - Covers the actual cost to reshoot the film as a result of bad film, camera malfunction or lab errors. There is no coverage for weather days during the reshoot.
- Props, Sets & Wardrobe - Covers props, sets & wardrobe used in a commercial. Jewelry, furs, fine arts, antiques and objects of art usually have a sub-limit of $5,000 to $25,000. Please note: Props, Sets & Wardrobe coverage does not afford any animal mortality coverage. Animal mortality coverage can be added by endorsement.
- Extra Expense - Covers those expenses incurred above and beyond what would have otherwise been incurred as a result of direct damage to property being used in the production. Please note that there are many exclusions in this section. For example: changes of temperature, dampness of atmosphere, damage to property stored in the open, loss of use of animals, breakage of glass or fragile materials and mechanical breakdown of other than cameras, sound equipment, and generators; providing this endorsement has been added.
- Miscellaneous Equipment - Covers the actual equipment being used to film including cameras, lights, grip and generators. Please note, this coverage can be extended to include physical damage to production vehicles and automobiles. At the very least, the coverage should be extended to include camera cars and cranes. Owned equipment is also covered under this section.
- Third Party Property Damage - Covers that property not specifically covered under Negative, Film & Videotape, Props, Sets or Wardrobe, Miscellaneous Equipment or Office Contents that are in the insured's care, custody and control. This coverage usually applies to property being moved out of the way on the location and in many instances to the location itself.
- Loss of Use coverage for film or video rented equipment is provided in either the miscellaneous equipment or third party property damage section. The various entertainment insurance carriers include this coverage under different sections of their production policies.
- Office Contents - Covers desks, computers, telephones, furniture and improvements & betterments.
There are many other types of insurance a producer could use, including coverage for aircraft, watercraft, weather, railroad, and more. Click here to read the entire article by Scott Taylor.
Scott Taylor is President of Taylor & Taylor Associates and Taylor & Taylor, Ltd. They have provided insurance for businesses and individuals for over 50 years, and specialize in film, TV and video production insurance. For more information, call (212) 490-8511 (NYC) or (310) 826-7200 (Los Angeles), or visit www.taylorinsurance.com.
|
