Every film set needs insurance. Film production is, after all, a huge investment, so it helps protect you and your crew from potential liability claims. Without insurance, you could risk lawsuits, expensive payouts, and even have your production shut down.
There are many types of film production insurance that cover a range of circumstances, but luckily, it doesn’t have to cost a fortune. In this guide, we look at everything you need to know.
What Is Film Production Insurance?
Production insurance provides you with a guaranteed compensation payout for loss and damages that might occur during filming. This covers a range of areas, such as your crew’s health and location protection.
Depending on the film you are making, you might need to take out more than one insurance policy. This is because each agreement changes based on the needs of every individual production. For example, some films might need additional insurance for stunt performers or filming in another country.
Before you make your film, you need to include insurance in your film budget breakdown. Professional film sets typically spend 2-3% of the budget on insurance coverage. Even if you’re making an independent film, you should make sure you have some basic production insurance.
Why Do You Need It?
Well, to be honest, when making a film, things can and will go wrong. For instance, equipment breaks, property can get damaged, or actors can get injured. Without film production insurance, you might need to pay for all of this out of pocket. If you refuse to pay upfront, you could face an attack of liability lawsuits.
Furthermore, it’s the producer on set that is held responsible for any claims made against the production. So, in short, if you’re a producer, you need to protect yourself in case someone tries to sue you.
If you’re a student filmmaker working with other students, your institution may insure you. However, it is still good practice to have the correct production documents completed before you begin filming.
Types of Film Production Insurance
To get production insurance, you will first need to contact a broker. Your broker will ask for details of what cover you need and create an insurance contract specifically for you. Below is a breakdown of the different types of production insurance available.
Make sure to research and read all the regulations before signing an insurance contract. If you’re unsure what broker to go with, ask around and see what insurance other production companies in your area recommend.
Public Liability
This type of insurance is designed to protect you if a client or a member of the public makes a claim against you for injury or damage to their property while you are working. This could be either an incident that occurs on your business premises or as a direct result of your operations.
For example, someone may trip over one of your cables and hurt their knee. It could even be something as simple as knocking over a mug of tea and damaging a client’s phone. Having public liability insurance in place will ensure that compensation and legal costs are covered without having to dip into your own pockets.
In short, if you do any public filming, then you need public liability insurance. Also, you might be able to find cover through certain film unions.
Why Do I Need Public Liability Insurance?
Filming often takes place in public places, so there is an inherent risk that accidents or injuries can occur. Legal costs alone can add up to thousands of pounds and could be enough to get you into some real financial difficulty. Add compensation on top of that, and the results of a claim could be catastrophic for both you and your company.
While it may be unlikely that you will ever need to make a claim, the benefits of having coverage far outweigh the costs of the policy. Also, there are times when public liability insurance is a contractual requirement if you’re shooting on location.
What Does It Cover?
Policies vary from insurer to insurer, but you will usually find that damage to property and bodily injury to any person is covered. Fortunately, this offers you protection for a wide range of scenarios, whether it was indirectly or directly your fault.
Most policies start at $1,000,000 maximum liability (the most they will payout), with higher limits available upon request. How much you will need depends on the nature of your projects, level of risk, and level of interaction with the public.
Professional Indemnity
Also known as professional liability insurance, this commercial policy is designed for both freelancers and production companies. It can cover costs if a compensation claim is made against you for damages based on your services.
While most film projects are completed without any major disasters, it’s always good to have professional indemnity insurance.
It may not be the most exciting thing in the world, but if you do research to find a good policy, you’ll have extra peace of mind that you are protected should the unexpected happen.
Why Do I Need Professional Indemnity Insurance?
Professional indemnity insurance is vital for filmmakers and is a contractual requirement for most projects. That’s because you can be held liable for any film that the client isn’t happy with (even if you followed the brief). This could include things like continuity errors and poor lighting. A client can also claim for either professional or financial damages that occur as a result of your work.
While you may be confident in your abilities, mistakes happen, and professional indemnity insurance can save you a huge expense if a project doesn’t go to plan. Without it, you would have to pay compensation plus any legal fees yourself. Unexpected costs like this could seriously derail your production and get you into some financial trouble.
What Does It Cover?
Different insurance policies will cover different things. However, most offer cover for:
- Negligence, which is when you make a mistake in your work or give a client advice that results in negative consequences.
- Intellectual property, which is where you unintentionally infringed on copyright or trademarks.
- Loss or damage of data belonging to the client, for example, accidentally deleting their footage.
- Dishonesty, which usually refers to theft from the client.
- Defamation, which is where you used or made material that damaged a third party’s reputation.
Some policies will also offer industry-specific extensions, like cover for an unintentional breach of contract or APA contracts for producing advertisements.
Film Equipment Insurance
As the name suggests, film equipment insurance relates to the cameras, monitors, audio equipment, and even computers that you use for your work.
It offers protection against theft, damage, or loss and means that should the worst happen, your insurer will replace your equipment with a like-for-like equivalent.
Why Do I Need Film Equipment Insurance?
Camera equipment is expensive, heavy, and not particularly inconspicuous, so it can be prone to damage, loss, or theft. You are often in busy locations and sometimes in several different locations a day, transporting all your equipment from A to B.
Even the most careful person can have the unexpected happen under these kinds of circumstances. Having proper insurance in place means that should the unexpected happen, you will be able to recover costs and get back up and running quickly.
For freelancers, your equipment is your livelihood. That’s why it’s so important that you have the proper insurance in place to make sure you are protected. If you’re renting equipment, you should definitely get equipment insurance. Luckily, some rental houses will be able to recommend insurance companies that they are partnered with.
What Does It Cover?
As this type of insurance is industry-specific, you will usually find that it covers all technical media or film equipment as well as all kinds of risks, including accidental damage.
This could range from anything like a home burglary to accidentally dropping your camera on the floor. As with any insurance policy, this can vary, so it’s important to read through the fine print to make sure you have adequate coverage for your particular kind of work and equipment.
Good film equipment insurance policies should always offer you the option of renting equipment in case an item is lost or stolen shortly before you are due to work on a project.
While many film equipment insurance policies are fairly extensive, you should also always double-check what security and storage requirements they have in place. For instance, while some policies will cover equipment taken from unattended vehicles, others will not.
If you work abroad, you should also look out for policies that include worldwide coverage so you don’t need to take out any extra insurance.
When it comes to how much coverage you need, you should always insure your kit for the current new replacement cost. If you use particularly rare or vintage equipment, you may need to get a valuation before you can receive coverage.
Bear in mind that to make a claim, you will likely have to show proof of purchase, so make sure you keep hold of any physical or digital receipts for your filming equipment.
Short-Term Insurance
This is the type of insurance most producers will need. Short-term insurance will cover one specific project on a day-by-day basis. In general, these insurances cover health, injury, location, and worker’s compensation. The cost will vary greatly depending on your production type.
Annual Insurance
If you’re a producer who has ongoing projects throughout the year, then you can take yearly insurance instead of short-term. This would also be useful if you own a film production company or rent out equipment all year round.
Specialty Insurance
Depending on how you shoot your film, you may need additional specialty insurance. Your broker will be able to add these additions to your insurance contract. For example, specialty insurance might include pyrotechnics, animal actors, drones, weaponry, or underwater shoots.
Where Can I Find Film Production Insurance?
It’s always a good idea to look for an insurance company that specializes in film and TV. Should you ever have to make a claim, they will have industry-relevant experience and will likely have dealt with similar situations before. The sooner they can resolve the issue, the sooner you can get back to what you do best.
It’s also wise to get quotes from a few different insurers so you can compare policies and find the best deal. However, whichever insurance company you choose, it’s important that you have a thorough understanding of exactly what is covered before you sign on the dotted line.
