Property Insurance For Film & Production Companies

Property insurance is critical to all film and entertainment firms. You have hundreds of thousands of dollars’ worth of equipment that you need to run your productions. The entertainment property policy you purchase has many different terms and we thought it would be good to review.

Covered property includes your equipment and related property used in the entertainment industry including audio, visual, computer, recording, lighting and projection equipment, wardrobes, props, costumes, and fine arts, as well as similar property of others that is in your care, custody, and control.

Property Loaned, Leased or Rented to Others-You’ll have coverage for direct physical loss to covered property you own that you loan, lease, or rent to others.

• Accounts Receivable- Coverage is provided to reestablish accounts receivable records damaged as a result of a covered, direct physical loss.
• Extra Expense- Commonly used equipment is easily and quickly replaced. Specialized or customized equipment may not be. To help you keep your performance commitments, your policy can cover the necessary and reasonable expenses up to a specific limit to expedite the repair or replacement of covered property. We can also cover the expenses to temporarily rent replacement property until your damaged property can be reasonably repaired or replaced.
• Business Personal Property-Your policy covers direct physical damage to your business personal property resulting from a covered cause of loss.         

Note: All coverage described here would be subject to specific limits depending on policy terms.

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.

Why Film & Movie Producers Need Professional Liability Insurance

From small productions to Hollywood blockbusters, substantial liability claims can arise for video, film and television producers. Even where you have ensured that all necessary clearances have been obtained you never know what will happen. Video Film and Television Producers Professional Liability insurance provides you with the peace of mind you need.

What Errors & Omissions insurance does is indemnify producers from lawsuits that may arise from the content of a production, including lawsuits alleging:

·         Invasion of privacy

·         Unauthorized use of titles

·         Failure to obtain appropriate rights for music and film clips

·         Improper handling of unsolicited scripts

·         Unfair competition

·         Professional errors in judgment

·         Infringement of copyright

·         Breach of contract

·         Libel or slander

·         Unauthorized copying of ideas,

This coverage will usually be required by a distributor, broadcaster or financier prior to the release of any theatrical or television production. Production financing will usually not flow until E&O coverage is in force.

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.

The Risks of Drone Ownership

More and more businesses are purchasing and using drones for number of reasons.  Drones have been used in the entertainment business for a number of years.  Unmanned Aerial Vehicles (UAV's), affectionately referred to as "Drones", are revolutionizing the industry as we know it. Drone insurance is a vital component in protecting the "Owner/operator" of the aircraft. Drones are a quickly evolving technology, and the implications and regulations for owning one may change in the near future. Current sales of drones are running about 200,000 for 2015.

Liability Issues with Drones

• Here are a few issues that have not yet been worked out through the courts:
• Who owns the airspace?
• What constitutes an invasion of personal space?
• What are my privacy rights?
•  Who is liable for damage?

Drone Insurance Concern

Most business insurance excludes liability related to an aircraft of any kind. Drone owners should talk to their insurance agent to see if they have coverage and, if not; consider what coverage options might be available. We have the ability to write drone insurance, call us today.

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.

Does Your Production Company Sign Contracts?

Contracts are signed in the entertainment business every day.  Contracts can include property lease agreements, equipment lease agreements, service agreements, and employment contracts.  It is an important part of your entertainment insurance and risk management program to review all contracts prior to signing.  We always recommend that you have an attorney review contracts to make sure that they comply with all state regulations.

Contract Hot Spots

• .         Hold harmless -- A hold harmless agreement requires you to hold another party harmless for your actions.  While this may be appropriate in some situations, we recommend you review this against your business insurance.  Your business insurance may have coverage limitations depending on the hold harmless language.  If you must indemnify the other party, limit the indemnification as much as possible. Negotiate the same indemnification for yourself.  An attorney can also help you understand unintended consequences that might arise from using, or agreeing to, a particular clause.
• .         Disputes provisions are often part of all contracts.  Make sure that the provisions state that any dispute will be managed and settled in your state of operation.
• .         Confidentiality agreement.  Many times you may be providing confidential information about your business or customers.  Consider including a provision requiring them to keep the information confidential and to secure the information in a manner consistent with applicable federal and state laws.

4.       Commercial or business insurance requirements should be included in every contract. If there is going to be any on-site work completed, make sure the agreement includes workers’ compensation insurance as well.

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.

Does Your Production Company Use Sub-Contractors?

Why Your Risk Just Went Up

There are many reasons why you buy production or movie insurance. But the bottom line is that you buy commercial movie insurance to protect your assets and have claims paid fairly and promptly. You also want competitively priced insurance rates.

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 businesses 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.

Most State governments 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.

You Have Just Been Sued…How What?

How To Prepare For A Deposition

Hopefully, you or your entertainment business will never be involved in litigation. But if you are sued, your business insurance will offer defense if the claim is covered under your business insurance policy. Your business insurance carrier will become involved with defending you in court, and part of that process includes depositions.

The deposition process will include the individuals involved in the litigation. This is where both sides interview the parties to get facts about the circumstances that cased the claims or loss. A deposition is a question-and-answer session that takes place in an attorney’s office. Usually present are the attorneys for the parties, the parties themselves, and a court reporter. It will be important to think about the following items as you plan for possible litigation.

Here are some things to thing about

• .     Always be represented with legal counsel.
• .     Do not be afraid to stop and ask your attorney questions.
• .     You will be under oath, so tell the truth.
• .    I f you do not know the answers say so.
• .     Answer only the question, do no tell a story.
• .     Do not guess.
• .     If you need time to think about your answer, that is ok.
• .     Never guess in response to a question!
• .     Only answer the questions that are asked.

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.

You Should Really Love Your Entertainment Insurance

Most of us would never say we love our insurance. In fact, most clients don’t even read their entertainment business insurance policy. Maybe after you read this story you may have a different opinion.

A small production company was filming a short commercial in a parking lot. One of the actors was set to drive up in a car and get out to promote the product. The actor could not stop the car and it ran into three by standers, causing serious injury, the resulting damages totaled over $15,000.

Know Your Business Liability Coverage

• Bodily Injury--Bodily Injury to a third party.
• Property Damage--Damage to a third party’s property (equipment building etc.).
• Advertising Liability--Damages arising out of advertising, libel, slander, or invasion of privacy.
• Products and Completed Operations--Liability arising out of the Nonprofit’s products or business operations and services conducted, excluding professional services.
• Premises--Covers liability arising out of injury to third parties while on your premises.
• Medical Payments--A general liability coverage that reimburses others, without regard to the insured's liability, for bodily injury while on your premises.

You should also pay attention to the exclusions in your business liability insurance policy. Some of the common exclusions are:

• Pollution
• Workers’ compensation
• Directors and officers liability
• Professional services
• And more

Many of the exclusions can be added or purchased under a separate policy.

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.