Business insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a film production firm.
This article will discuss the primary insurance coverage for film production firms, general liability insurance, as well as additional policies that are appropriate for this industry.
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Film Production Companies Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Situations That A Film Production Company’s General Liability Insurance May Cover
Example 1: A piece of heavy equipment falls on the scene and lands on a bystander who has strayed away from his studio tour. His leg has been crushed, and he is taken to the hospital. If your organisation was found to be accountable for the occurrence, general liability insurance would most likely pay the following damages or a settlement struck.
Example 2: During a dangerous scene involving a contained fire outbreak, the flames become uncontrollable and destroy a small local bookstore. In this case, your company would most likely be covered by a general liability policy for the bookstore’s damages.
Example 3: Following the completion of filming, your caterers provide food for the wrap-up party. Some actors and studio employees bring friends and family, but many of them become ill after eating the food. The caterers made a critical error and served rotten food to the gathering. If found guilty in court for this occurrence, general liability insurance would most likely cover part of the following losses as well as any settlements made.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
The typical American film production firm pays $300-600 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Film Production Companies
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that every film production firms should have are as follows:
Insurance for Commercial Property
Equipment is everything to a film production firm. Cameras, set pieces, computers, costumes, cosmetic supplies, and other tangible assets are essential. If these assets are destroyed by a natural catastrophe such as fire or severe weather, it might mean disaster for an uninsured film production firm. Don’t be taken off guard by unexpected disasters. Commercial property insurance covers damages to owned commercial real estate, equipment, and other items used in your operation. For really serious firms, this principle is non-negotiable.
Insurance for Commercial Vehicles
A film production firm will need a number of motor trucks to transfer equipment and workers to new shooting sites. In fact, your autos may get involved in a scenario when vehicles are required! Any vehicle that operates on public roads is required by law to be insured. Accidents on the road might be covered by commercial vehicle insurance, whether you’re actively shooting a car chase or just picking up lunch for the artists and crew.
Insurance for Workers’ Compensation
Your film production firm will prosper because of its workers’ ability and expertise. Workers’ compensation is required by law for all part-time and full-time employees (excluding independent contractors). Any on-the-job incidents that occur are potentially covered by a decent compensation insurance, and it will allow your personnel to rest easy in the case of injuries received on the job. This insurance also includes disability and death benefits, which protect not only workers but their families as well.
Coverage Options for Film Production Companies
In addition to the policies listed above, your film production firm may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Umbrella Insurance for Businesses
You never know what will happen at work on any given day, but this is particularly true for employees of a film production firm. Commercial umbrella insurance is an add-on policy that supports maximised insurance by providing a new level of protection for firms wishing to cover all of their bases. Working with such a varied range of people and equipment, your film production firm can’t afford to be too careless about which possible hazards it overlooks. Commercial umbrella insurance may provide a significant safety net for organisations.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.