This is a presentation that I made to an MFA film production class.

1. Insurance for Filmmakers
Chris Johnson
October 20, 2011

2. Insurance for Filmmakers
• What is insurance?
• Why do filmmakers need insurance?
• What types of business insurance are relevant
to filmmakers?
• What are Certificates of Insurance?
• Can I afford insurance?

3. What is Insurance?
• Form of risk transfer
• Insured assumes small known loss in exchange
for promised compensation in the case of a
larger uncontrollable loss
• The opposite of playing the lottery

4. Why do Filmmakers Need Insurance?

5. Why do Filmmakers Need Insurance?

6. Why do Filmmakers Need Insurance?
• Required by:
– Film offices
– Rental houses
– Locations
– Financial backers
– SAG
– Distributors

7. Recent Examples of Insurance Claims
• Sacha Baron Cohen and Universal Pictures
were sued for the bingo scene in “Bruno”
• Warner Bros. Pictures is being sued by a stunt
double for "The Hangover Part II" for a head
injury
• Production of “In Time” was delayed 2 weeks
by Justin Timberlake’s leg injury
• Heath Ledger’s death during the filming of
"The Imaginarium of Doctor Parnassus"

8. What Types of Insurance are Relevant?
• General Liability
• Workers Compensation
• Inland Marine
• Commercial Auto
• Professional Liability (Errors & Omissions)
• Excess Liability (Umbrella)

9. Commercial General Liability
• Claims relating to physical injury to others, or
damage to their property
• Protection for ‘innocent by-standers’
– A camera is dropped on a pedestrian’s foot
– A boom falls on a parked car
• Occurrence and Aggregate Limits
• Stunt coverage is an additional expense

10. Workers Compensation
• Coverage for work-related injuries and
diseases
– Required by law for employees by all states
– Required by some locales for film permits
– Free lancers often meet the WC definition of
employees
• Payments are made directly to healthcare
providers and injured workers

11. Inland Marine
• Equipment – Rented or Owned
• Props, Sets, Wardrobe
• Negative Film, Videotape & Digitalized Image
• Third Party Property Damage
• Cast Coverage

12. Inland Marine
• Third Party Property Damage
– Claims relating to damage to property in your
‘care, custody and control’ (locations)
• May not be very important for filming in a shoe store
• May be very important for filming in a BMW dealership
– General Liability does not cover damage to
locations

13. Inland Marine
• Cast Coverage
– Pays the production company for lost time due to
cast member illness or death
– Does not pay to the cast members themselves
• It is not a replacement or alternative to Workers Comp
– Can cover all cast/ crew or just key people
– Physical exams may be required for covered
people

14. Inland Marine – Less Common
• Extra Expense
• Rental Cost Reimbursement
• Civil Authority
• Office Contents
• Animal Extra Expense
• Hired/ Non-Owned Auto Physical Damage

15. Commercial Auto Liability
• Bodily injury or property damage claims relating
to auto accidents
– Stunt vehicles
– Production vehicles
– Personal vehicles
• Hired/Non-Owned
– Hired means rented
– Non-Owned means borrowed (employee personal
vehicles)
• Stunt coverage is an additional expense

16. Professional Liability
• Also called Errors & Omissions
• Malpractice Insurance for Doctors is a
commonly known example
• Coverage for Errors in Work Product
– Unauthorized use of copyrighted material
• Film that is too similar to another
• Unlicensed music
– Unauthorized use of someone’s image or likeness
– Defamation

17. Professional Liability

18. Excess Liability
• Similar to Umbrella coverage in personal
insurance
• Coverage kicks in if underlying liability
coverages are exhausted
– General Liability
– Auto Liability
– Professional Liability
• More common for larger productions

19. Certificate of Insurance
• Document providing proof-of-insurance to
third parties
• Not a contract in and of itself
• Cannot be used to change terms of the actual
insurance policy (which is a contract)
• Insurance regulations limit what can be
included on certificates

20. Certificate of Insurance
• Additional Insured (General Liability)
• Loss Payee (Rented Equipment)
• Primary Coverage
• Unlocked Vehicle Exclusion
• Special Wording (additional charge from
insurer)

21. Can I Afford Insurance?
• Short-Term Policies are available for film
productions
• Monoline (à la carte) Policies can satisfy some
very specific needs
• Package (prix fixe) Policies are usually the best
deal for established businesses
– DICE Annual Producers Package
• Most major insurers accept payments for annual
policies
• Most major insurers accept credit cards

22. Can I Afford Insurance?
‘Buy as much insurance as you can afford—some
is better than none.’

23. www.johnsonese.com
info@johnsonese.com
773.857.0242