Film production insurance: coverage, requirements and costs

A film or video production is a temporary company with expensive equipment, high-value people, strangers' property and a deadline. Most producers buy a production package that combines cast, production media (negative and faulty stock), extra expense, equipment and props, and third-party property damage, then add general liability, auto, workers' comp and, for anything that will be distributed, producers' errors and omissions. Film production is NAICS 512110, with post-production in 512191 and other film and video industries in 512199. The insurance problem is timing: coverage must be bound before cameras roll, written to last until delivery, and shown on a certificate the city or location owner will accept.

Why film and video producers need business insurance

A single loss stops everything. When the lead actor is injured, a card with a day's footage fails, or a camera package is stolen, the cost is not just the replacement but the crew, locations and rentals that keep running while you wait. Chubb's Film Producers Risk brochure describes production exposures as running from equipment losses to production losses caused by cast illness or damaged production media, and defines "Production Loss" broadly to include additional costs to complete an insured production, through post-production.

You borrow and rent almost everything. Cameras, lenses, trucks, locations, picture cars and props come from other people. Care, custody and control liability is the exposure when you damage property you are responsible for; a general liability policy excludes it, so it is bought as third-party property damage in the package. Chubb's brochure describes automatic coverage for cast and crew living quarters, animals and loss of use for covered property.

Locations and permits require insurance. City film offices make proof of insurance a condition of the permit, and private locations ask for the same.

Distribution brings intellectual property claims. A finished film or series is a collection of copyrighted works: music, footage, artwork, logos, scripts and likenesses. Statutory damages are $750 to $30,000 per work, up to $150,000 for willful infringement (17 U.S.C. 504(c)). Distributors and platforms require E&O, usually with the platform as additional insured, before they take delivery.

Core coverages

• Production package. The core film policy, with sections for cast (illness, injury or death of an insured performer), production media (damage to film, tape, drives and data, including data recovery), production extra expense (added costs to finish the production after a covered loss), production equipment, props, sets and wardrobe, and third-party property damage. Chubb's brochure notes that many policies limit extra expense to completing principal photography, while its form continues through post-production, and that the policy term runs from binding to completion of the production. Other carriers' forms differ, so compare the exclusions for pre-existing conditions, weather, and cast outside the declared list.
• General liability. Covers bodily injury and property damage to third parties, including passers-by and location owners, subject to the usual exclusions for professional services and for property in your care, custody or control. See commercial general liability.
• Producers E&O (media liability). Covers claims of copyright and title infringement, defamation, invasion of privacy and right of publicity arising from the content. Usually written on a claims-made basis for three years from delivery or release. See media liability insurance: defamation, copyright and content claims and Intellectual property insurance: defense, enforcement and what a CGL misses.
• Workers' compensation. Crew injuries from rigging, lifting, vehicles, stunts, heat and long days. Productions often run payroll through an entertainment payroll company, which carries comp; confirm who is the employer and who is covered.
• Hired and non-owned auto and picture-car cover. Rented trucks, production vans, and vehicles used in the shot. See Hired and non-owned auto (HNOA) coverage: what it covers and who needs it.
• Umbrella. For the higher limits that studios, locations and distributors request; see commercial umbrella insurance.
• Equipment floater. If you own a camera package and shoot year-round, an annual inland marine insurance for tools, equipment and goods in transit policy may cost less than a package on each production.

Coverage you may be required to carry

No state requires a production company to carry GL or a package. Requirements come from permit offices, location owners, distributors and financiers. Example: New York City's Mayor's Office of Media and Entertainment requires, for a film permit, general liability of at least $1 million per occurrence in the name of the entity applying, on an occurrence (not claims-made) form at least as broad as ISO CG 00 01, from an insurer rated at least A.M. Best A-/VII (or equivalent S&P, Moody's or Fitch rating), with the City named as additional insured on CG 20 26 or CG 20 12 or equivalent. The broker must email the certificate, a broker certification and the endorsement at least 48 hours before the application, and the certificate must be signed by the broker and show coverage dates covering the whole project. The office may waive the requirement for hardship, for example where a policy would cost more than 25% of the project budget, and it can require more based on risk. New York State workers' comp and disability forms may also be needed. Other cities and states set their own terms, so check the permit office before buying. State workers' comp law applies to crew employees (see workers' comp requirements by state: who must carry it). See certificates of insurance: what they prove and what they do not and use the Certificate of insurance (COI) review checklist.

Common claims and how to prevent them

• Equipment loss. Inventory serial numbers, lock grip and camera trucks, and never leave a package unattended in a vehicle.
• Media loss. Two verified copies on separate drives before wiping a card; the data wrangler's log is the claim evidence.
• Cast claims. Medical examinations for key cast where the policy needs them, and a declared list so the policy applies.
• Property damage to locations. Written location agreements, before-and-after photographs and a walk-through with the owner.
• Crew injury. A safety plan, safety meetings, certified stunt coordination and rigging, and heat and hours policies.
• Clearance claims. Written music licenses for each use, signed releases, and a title report and legal review before release.
• Auto. Driver qualification for production vehicles and a rule for who may drive picture cars.

What drives the cost

• Package policy: insured production budget (the "below-the-line" cost and cast budget), production length, location and travel, number of principal cast and their ages and health, stunts, water, aircraft, weapons and animals. Short-term packages are rated per production; annual policies are rated on projected volume.
• General liability: budget or payroll for the production, with higher charges for pyrotechnics, stunts and public street work.
• E&O: budget, genre, use of real people or brands, and clearance procedures; documentary and docudrama work attract more scrutiny.
• Workers' comp: payroll by class code; entertainment classes vary by state, and stunt work carries higher charges.
• Underwriting questions: script, budget, shoot locations, cast list and ages, whether any aircraft or boats are used, and prior claims.

Specialized coverages to consider

• Excess cast, media or negative for higher limits than the package.
• Civil authority, strike and weather extensions where not automatic.
• Completion bond (a surety product) required by some financiers.
• Animal and stunt riders where the primary form excludes them.
• Cyber for productions that hold personal data of cast and crew; see cyber insurance: what it covers for a business.

How to buy

Film insurance is a specialty market. Independent producers and video companies should use a broker who places entertainment risks, because a package, E&O, and permit-compliant certificates must line up. Chubb publishes Film Producers Risk for feature films, television, commercials, documentaries, music videos, educational films and corporate productions. Have ready: the script or treatment, budget, schedule and locations, cast list with ages, crew size and payroll plans, equipment list, vehicles and special hazards, and the contracts that set insurance terms. Bind before location scouting that involves paying deposits. See how to prepare an insurance submission underwriters will read.

Key takeaways

• The production package is the core policy; read what ends coverage and when post-production is included.
• Permits and locations, not the state, set your general liability limit and wording; NYC, for example, requires $1 million per occurrence on an occurrence form.
• Producers E&O is usually a delivery condition, not an optional extra.
• Care, custody and control property damage is not covered by GL, so confirm it is in the package.
• Keep media backups and clearance records; they are your claim documents.