Property Insurance For Production Firms Part II

Part one of property for film and production companies we talked about; definition of covered property, leased or rented property, accounts receivable, extra expense, and business personal property. Now let us cover some additional areas. 

Rental Reimbursement -Coverage for continuing rental or lease charges you are legally obligated to pay under a written lease or contract for covered property you rent or lease from others when that property has a loss.

Newly Acquired Property-newly acquired entertainment equipment is covered usually, for up to $10,000, for 45 days or until the expiration or cancellation of the policy, whichever comes first.

Valuable Records, Data, and Software-Record keeping is essential for any business. Your policy can include coverage to restore, replace or reproduce your valuable records, data and software.

Unexplained Disappearance-Your coverage is extended to provide up to a specific limit towards the cost to replace covered property that is discovered to be lost or missing upon taking inventory and for which you can furnish a sales receipt or manufacturer’s packaging.

Exhibitions-Equipment that is physically damaged by a covered cause of loss while on temporary exhibition is covered. Error in Repairing, Restoration, or Retouching Your policy also extends coverage to the loss resulting from your employees’ defective workmanship in repairing, restoring, or retouching covered property. 

John Hart insurance can provide your film or production company with:

• Coverage is available for a wide variety of equipment used in the arts and entertainment industry
• The policy typically covers:
•  Property in storage
•  Property in transit
•  Property owned by others and in your care, custody, or control
•  Property on exhibition
• Expediting expense, rental reimbursement, exhibitions, and other important coverage additions and basic limits can be built-in
• Coverage is available on a scheduled or blanket basis
• Limits may be customized to meet your individual needs

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

Property Insurance For Film & Production Companies Part I

We get questions every day regarding what are the common coverage’s found in commercial property insurance for film and production companies. Part one of our series, film & production company property insurance, we will review; definition of covered property, leased or rented property, accounts receivable, extra expense, and business personal property. Let’s get to it.

Definition of Covered Property-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.

Why Insure Your Production Equipment For Replacement Cost?

Here is a quick definition of replacement cost coverage; Replacement Cost value is the amount it would cost to repair or replace an item with one of the same kind and quality as the original — in today’s market.

Replacement Cost Coverage usually reimburses you for the full cost of replacing the items you lose, rather than simply reimbursing you for the value of the item at the time it was lost. In other words, your insurance policy would pay what it would cost to go out to a store and purchase the item today.

From theatrical costumes, sets, to musical instruments, amplifiers and sound boards, from cameras, video equipment, and computers to custom-made puppets –equipment is an integral part of the entertainment an integral part of the entertainment business.

Having replacement cost coverage will allow you to continue operations after a loss with the least amount of disruption.