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.