Tuesday, September 29, 2015

Does Your Entertainment Company Use Sub-Contractors?

Why Your Risk Just Went Up

The National Labor Relations Board (NLRB) unveiled a new standard for determining which employees are considered employees and which are considered contractors. Over the past few months, most government regulators have been cracking down on businesses that misclassify employees as contractors. These rules may make more entertainment firms responsible for labor law violations committed by contractors and staffing agencies in wage and hour benefits.

Previously, employers were responsible only if they had direct control over working conditions. This ruling will impact temporary staffing firms which currently employ over 3 million people. In some cases, these “contractors” may be deemed joint employees.

California regulators are cracking down on businesses that try to skirt the employee/employer relationship by identifying certain individuals as contractors. Here is a good test:

The six factors, or questions, in the “economic realities” test include:
1.   Is the work an integral part of the employer’s business?
2.   Does the worker’s managerial skill affect the worker’s opportunity for profit or loss?
3.   How does the worker’s relative investment compare to the employer’s investment?
4.   Does the work performed require special skill and initiative?
5.   Is the relationship between the worker and the employer permanent or indefinite?
6.   What is the nature and degree of the employer’s control?


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.

Wednesday, September 9, 2015

Does Your Production Need Increased Liability Insurance Coverage?


Entertainment or production firms are not immune from large lawsuits. Large claims involve; injury or deaths on sets, copyright issues, cancelled events, talent contracts, and more.

Umbrella Insurance provides extra protection or limits above the liability insurance you currently have. An Umbrella Insurance policy protects your production from losing the entirety of your resources and assets in the event of a large claim. Umbrella Insurance provides limits above your primary commercial insurance program.

Here is one example. While shooting an advertisement on a California highway an auto accident caused injury to two production members and a third party. The crew were covered under workers’ compensation but the by stander was not. The third party sued the production company for $2,500,000 in damages.

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 manage the risks inherent to the client’s unique businesses.