Film & Entertainment Insurance

Hey all,

I've come to find that there are a lot of questions concerning insurance; whether it's rental house, film/production, D.I.C.E., etc. I thought this could be a good forum for people to ask questions and get feedback from myself and other users. I specialize in insurance for film, entertainment, and support industries and thought I might be able to clarify any issues. These are complex policies and differ greatly among insurers.

Let's talk about insurance, share your stories, and ask questions!

Emory M. Maginnis
 
Cool, welcome to the site!

I'm a complete newb with insurance. Everything I've ever shot has been 100% guerrilla, but I don't intend for it to stay that way.

Okay, so if I understand it right -- a film production needs two kinds of insurances, correct? One is for everyone's safety during production, and the other is E&O?

Would you go to the same place for both? And as far as figuring out the rates for each, I can see how the production liability insurance could be calculated by size of cast/crew, how many stunts, and a bunch of other factors, I'm sure. But how in the heck is the rate for E&O determined? I mean, if it's an original story, it's an original story, shouldn't all E&O be the same?

Like Morris, I'm also curious about some ballpark figures. And I don't mind if they're just broad generalizations. Let's say it's a very small cast/crew -- on most days, there would be less than 10 of each, cast & crew. And let's say that there are very few stunts, and they're simple (like stage fighting). And let's say it's a 20-day shoot. Production budget is ultra-low-budget. Is that enough info for a ballpark, or are there still many variables?

And then for E&O? Not sure what kind of info I could provide. I mean, it's an original story, nothing lifted from anywhere. Ultra-low-budget.
 
First, there are multiple policies for a production. There is General Liability, a Production Package Policy, Auto, Workers Comp, and sometimes Excess Coverage. These are all typical production policies. E&O is usually a post-production coverage.
There are multiple things that are taken into account when quoting E&O coverage. The distribution, the type of material, the scale of the release, whether it will have a DVD presence or is strictly for a festival perhaps. Little things can cause claims, not just if the script is original. Perhaps the original script was written by a guy who took pieces of a friends life to write the script, but didn't tell anyone about it. Then the "friend" comes after the production for compensation. Perhaps the movie posters are reminiscent of another poster and they sue for likeness. All sorts of things can happen.
As far as the ballpark figure, it really depends on the budget. For a feature film, it all can range from around $10,000 (probably a little more because of minimum premium) to you name it. Keep in mind this is for a feature film, not a short shoot festival-type film.

Hope this helps.

Best,
Emory Maginnis
emory@mfeis.com
 
I'm glad you're here. :)

I've been wanting to ask a question - lawyers and doctors have malpractice insurance, and, in some jurisdictions, a working professional must carry it. Is there malpractice insurance for film producers and directors?
 
Is there malpractice insurance for film producers and directors?
Yes. That's what CF and Emory are discussing. E&O insurance is similar to malpractice insurance.
In most cases the producer does not need to buy E&O insurance. It’s crazy expensive and if you
never get a wide DVD or theatrical releace it may be unnecessary. In most cases (not all) the
distributor will cover that cost. Of course the costs end up being charged against what you
make but the cost does not need to come out of your pocket.

CF - I have paid as low as $2,500 for a 3 week (18 day) shoot for insurance; few locations,
small cast, no "stunts". For the one day we used squibs we added another $250 bringing the
total to $2,750.
 
Factors that jack up your insurance rates:

guns
stunts
fire
animals
high cranes
a past history of filing a claim as a producer
doing gangster rap
having a big budget
shooting a long time


If you're renting serious equipment, most rental houses will want certificates of insurance. Most savvy location owners will want proof of insurance, too. However, I think the biggest reason to use insurance is the physical safety. Unless you have a crew of best friends, you just never know if someone on set is gonna trip over a cable, crack their knee open and then turnaround sue you for missing a year of work.

As for E/O, like directorik said, this really depends on where your movie is heading. If you do get distribution, the distributor will indeed ask if you have E/O, but they don't necessarily ask you to PROVE that you have it. One big way of playing it safe when writing your script is to use no last names. Or if you DO use last names, make them ridiculously generic, like "Jones" or "Brown." Or avoid establishing the city you're in. That doesn't solve all potential problems, but it's a big help.

Shanked
 
Thanks, Rik, Emmagin, and everyone else for creating a wonderful thread. Is there any way to get the standard policies on E&O and general liability film insurance?

I think that, if E&O is post-production, then it would not be the producer's malpractice, because, as I understand it, a producer is involved in pre-production as opposed to post-production. But that's just my understanding.
 
Is there any way to get the standard policies on E&O and general liability film insurance?
Yes. You can contact any of the many providers of E&O and general
liability film insurance. They will be glad to give you their standard
policies.

I think that, if E&O is post-production, then it would not be the producer's malpractice, because, as I understand it, a producer is involved in pre-production as opposed to post-production. But that's just my understanding.
Well. Errors and Omissions insurance isn’t EXACTLY the same as malpractice
insurance. You read the link I provided so you understand a little better what
E&O insurance is - and it’s not “post production” insurance. It indemnifies
producers from lawsuits that may arise from the content of a production,
including lawsuits alleging infringement of copyright, libel or slander, invasion
of privacy, plagiarism or unauthorized copying of ideas, defamation or degrading
of products and infringement on title, slogan, or trademark.

Standard PLI can be taken out by individuals and companies to help them from
bearing the full cost of defending against a negligence claim made by a client.
 
I was looking for some very broad figures for various types of shoots. Say I had a feature being shot on public roads and private property with a cast of 20-30 and a crew of 35, including driving, handcuffing, sims (no shooting), running through woods, and strippers.

Also are there any generalizations you can give such as X-Y$ per shooting day + Z$ for A type stunts, W$ for B type stunts, etc.?
 
To get specific numbers I would have to have a much more fleshed out shooting schedule. I was hoping for some general numbers so that I could see what effect certain on set activities have on the overall cost. My insurance guy can provide me with everything except for E&O coverage but needs set in stone numbers to work with.
 
Yes. You can contact any of the many providers of E&O and general
liability film insurance. They will be glad to give you their standard
policies.

Thanks, as always, Rik. :)

Any insurance agents out there who can provide that? If so, please PM me for contact details.

Oh yes, those who are purchasing any kind of insurance should get an insurance lawyer to look over the fine print - not just any lawyer but an insurance specialist, because, under certain circumstances, the insurer can refuse to provide coverage, so the contact has be to written so they can't wiggle out. Many general practitioners will not know of the pitfalls.
 
No need to PM anything:

Emory has offered to answer questions and even offered an email.
You can contact:
http://www.productioninsurance.com/
Call FilmIns at 800-696-3023 http://www.filmins.com/
http://www.eqgroup.com/film_production.htm
I always use: http://www.filmemporium.com/

Any insurance agent will need a lot of information about your production i
n order to give you anything other than a general ballpark number. I have
gotten coverage for a feature for as low as $2,750. I have paid $20,000.
That’s your ballpark figure. When putting together a budget I have found
that 3.5 to 4% of the non-salary budget is a pretty good general number.
E&O can be all over the place - it depends on the final movie.
 
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