Thursday, November 20, 2014

Production Companies Need Replacement Cost Insurance

Entertainment Industry & Replacement Cost Insurance

You purchase insurance to cover losses you may have to your commercial buildings, equipment, cameras, props and other property. There are a number of decisions you make regarding your coverage that will determine how the loss will be viewed by the insurance company. According to the latest surveys by major insurers, many in the entertainment industry have a critical gap in their insurance coverage. The reasons vary from; not fully understanding how certain coverage applies to their business, buying insurance from an agent who does not understand entertainment insurance, thinking their commercial coverage provides the coverage, and finally believing they don’t have the risk.

What Is Replacement Cost Coverage?

Replacement cost coverage essentially means that the insurance company will replace the damaged or destroyed property with new property up to the policy limit, as long as it is with like kind and quality.  This may seem simple, but it's not quite that simple in every case. If the value is not accurate, your loss may not be fully covered.

Replacement cost insurance can be purchased to protect buildings, props, cameras, production equipment, machinery, office equipment and more. This insurance pays the full amount needed to replace the asset or property up to the policy limit. Any gradual reduction of the asset value or depreciation is not taken into account for insurance claim purposes.

The staff at John Hart Insurance has over 60 years combined experience in the field of entertainment insurance.  We focus exclusively on understanding the unique needs of motion picture, television, video, music and theatrical companies.  This knowledge base allows us to structure an insurance program specifically for each client that will be a balance of  the best coverage and most economical solutions to help them manage the risks inherent to their unique businesses.

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