Products and Cover Profiles

What cover is required will depend upon the type of production to be insured. Some advice on the different aspects to consider and an estimate of the likely premium can be given once a preliminary budget is available.

For smaller productions such as short films and documentaries, cover is arranged on a 'Short Term' basis. For larger productions, such as feature films, cover is arranged on a 'Per Production' basis and in most cases cover can be arranged on an 'Annual' basis.

The insurance risks involved with Film and Television Production are split into sections. These sections can be bought individually and the relevant sections will vary from one production to another.

The following summaries of the available covers are only intended to be a very basic guide to the cover that they provide. For a full understanding of the cover, it is important to read the policy wording and contact Austagencies Cinesure if you have any questions.

Film Producers Indemnity (Cast Insurance)

Some people can be very important to a production and these people can be agreed with Austagencies Cinesure as a 'Named Persons'.

If a Named Person suffers an Accident, Illness or even Death, during Principal Photography, this can cause significant Financial Loss for the Production Company.

'Financial Loss' means:

1. Extra expenditure incurred in maintaining the Production.
2. Extra expenditure incurred to complete the Production.
3. Costs involved if Abandonment or Suspension is agreed with Austagencies Cinesure.

The premium is principally based on the Net Insurable Production Cost (total costs less Post Production costs etc) at completion of Principal Photography.

• The usual people insured are Principal Actors, the Director and the Producer. Accident risks are covered automatically and Illness cover is included upon receipt of a satisfactory Medical Declaration. Any costs related to medical examinations are the responsibility of the Production Company.

Pre-Production Indemnity (Cast Insurance) is similar to Film Producers Indemnity above and protects the Production Company for incurred costs and expenses during the pre-production period where the production is geared to the availability of a contracted Director or Principal Actor(s).

Negative Film Risks

This covers physical Loss or Damage to Negatives or Videotape, which causes Extra Expenditure for the Insured in re-shooting or repairing the damaged footage. If the Negatives are completely lost at a late stage of production this could cause a Total Loss. Usually, cover also provided for Faulty Stock, Faulty Camera and Faulty Processing losses.

The Sum Insured is based on the Total Budget less any budgetary items which would not form part of a loss such as insurance premiums, bank interest, owned office equipment, props, set and wardrobe, story and script rights etc.

• Cover includes work prints and 'rough cuts' but excludes library stock.

Multi Risks

This section covers Physical Loss or Damage to Equipment (cameras, lighting and sound) or Props, Set & Wardrobe, used in connection with a production. Cover can also include equipment such as edit suites and computers.

The cover provided is on a 'Reinstatement & Replacement' basis for equipment owned, hired or leased by the Production Company.

• Action props, such as registered vehicles, may only be included if Austagencies Cinesure are advised in advance, otherwise they are excluded from the Policy.
• A schedule of equipment and replacement values will normally be required.

Extra Expense

This protects the Production Company for any additional Expenses incurred, following Physical Loss or Damage to cameras, equipment or facilities.

Extra Expense means additional costs to those budgeted, necessary to maintain production, including a move to another studio or location if agreed with Austagencies Cinesure.

• The damage has to be from an external cause. Cover excludes electrical problems and other internal faults.
• If agreed with Austagencies Cinesure in advance, cover can normally be extended to include these risks for an additional premium.

Public Liability

This section protects the Production Company for sums, which they become legally liable to pay as compensation (excluding punitive or exemplary damages) regarding:

1. Bodily Injury (including Death & Illness).
2. Loss of or Damage to Property including Loss of Use.

. The most common Limits required are $5,000,000, $10,000,000 and $20,000,000.

• For most Production Companies it is much more efficient to have an annual Public Liability policy as opposed to arranging separate covers for each production. This is because of the minimum premiums required to cover such large limits.

Money

This section covers Money used in connection with a Production such as 'petty cash' on location.

• As with any insurance, it is a condition of the policy that all reasonable precautions are taken to safeguard against a loss.
• Cover excludes money used to run a business and money carried by couriers.
• In the event of a loss, the police must be notified immediately.

Errors & Omissions

This covers the Production Company's liability for sums, which they become legally obligated to pay as Damages. These Damages may be awarded in a court of law for:

• Invasion, Infringement or Interference with Privacy or Publicity rights.
• Infringements of Copyright or Trademark.
• Libel, Slander or other forms of Defamation.
• Plagiarism, Piracy, or Unfair Competition resulting from alleged unauthorized use of Titles, Formats, Ideas, Characters, Plots, Performances or other material.
• Breach of Contract.
• Coverage is Worldwide and normally issued for an initial period of 3 years.