California Business Interruption Insurance

Coverage for every movie production company

Business Interruption Coverage is part of commercial insurance policies. This coverage is most commonly found in Commercial Property Insurance Policies and Business Owner’s Policies (a package policy for small businesses, often referred to as a “BOP”). If you own a production, film, TV, media, or Entertainment Company, California Entertainment Business Interruption insurance should be part of your program. Remember John Hart Specializes in your industry. There are a number of important elements to Business Interruption Insurance:

1.     .  Coverage is triggered by a covered loss; for example fire, wind, etc.
2.     .  There is a waiting period that acts like a deductible.
3.     .  Coverage is limited to lost net income, temporary relocation, and ongoing expenses such as payroll that enables businesses to continue paying employees rather than laying them off.
4.     .  There is a time period for recovery, usually 12-18 months.

Extra Expense Insurance reimburses your company for expenses, over and above normal operating expenses, to avoid having to shut down during the restoration period. Usually, extra expenses will be paid if they help to decrease business interruption costs

Business Interruption Insurance can be as vital to the survival of your production firm, studio or company as Fire Insurance. Make sure your policy limits cover a sufficient amount of time to rebuild your business. It can take more time than anticipated after a major disaster to get your business functioning again. 

John Hart Insurance Agency Insures Animals

Animals have been used in movie-making, advertising, documentaries, print, and various production functions since the early days of the industry.  The American Humane Association has worked for many years to protect animals in films. This confirms how important animals are in movies, TV, documentaries and other productions.

Animal Mortality insurance will pay an agreed value for your animal actors if it dies from any accidental or natural cause. This coverage protects you against loss as a result of a variety of perils, including fire, lightning, windstorm, hail, theft, collision, upset while in transit, accidental shooting, and drowning.  Plus, it pays the agreed value of the animal actor if death was caused by one of the perils listed on the policy.

How it Works…it is simple

We get the resumes on the animal actors and their wranglers.  We can then write Animal Mortality coverage (life insurance) on the animals for a predetermined value.

How do you place the value on a unicorn?  On two unicorns? Ask John Hart to find out.

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. 

Distracted Driving in the Entertainment Industry

Distracted driving is any activity that could divert a driver’s attention away from the primary task of driving. All distractions endanger the safety of the driver, passengers, and bystanders.  Many of our clients face the freeways and roads in California and the heavy traffic itself can be distracting. Here are a few facts from the National Highway Safety Association:

•  16% of fatal crashes in 2011 involved reports of distracted driving.
•  20% of injury crashes in 2011 involved reports of distracted driving.

Remember there are state laws that prohibit the use of phones while driving. California has several laws banning the use of cell phones (wireless telephones). The first two laws prohibit all drivers from using handheld wireless phones or cell phones and prohibit drivers under 18 from using hands-free cell phones. A third law bans texting while driving.

Distracted driving includes:

•     Texting
•     Calling your agent or studio
•     Using a cell phone or smartphone
•           Eating and drinking
•     Talking to passengers
•     Grooming
•     Reading, including maps
•     Using a navigation system
•     Watching a video
•     Adjusting a radio, CD player, or MP3 player

Safe Driving Prevention

• While your crew is moving props or equipment from location to location we would like to offer a few safety tips:
• Pull off the road to make a call, or have the passenger do it.
• Plan your route before you get in the vehicle.
• Always buckle up.
• Do not tailgate.
• Allow sufficient time to reach your destination.
•  Ensure your vehicle is properly maintained.

   

The show must go on...But when it doesn’t, John Hart has a solution

Most entertainment companies do everything possible to make sure that shows and productions are opened on time. But sometimes there are circumstances that just can’t be helped. Fire, natural disaster, and talent illness can cause events to be cancelled. Special Event Insurance can provide the necessary security to ensure that if something does go wrong, you and your guests are protected.

Event Cancellation Insurance/Special Event Insurance from John Hart Insurance protects production companies from unforeseen circumstances that require the show to be canceled. It would provide funds to cover deposits and other costs that may have already been paid. Unforeseen circumstances could be related to any number of things including weather, construction at the venue, or illness of the featured speaker or entertainer. Policies can be created to protect revenues or expenses for those with insurable interests should an event be cancelled.

Event Cancellation Insurance is an important insurance to consider. If a loss occurs, John Hart will work closely with you to file documents quickly and accurately so your event can go on as planned.