All film productions should have insurance coverage—and not just because it is financially smart. Insurance for feature film production is a legal necessity, and many venues will not permit a film to shoot at its location if it cannot demonstrate an acceptable minimum level of protection and the right mixture of policy types.
Film producers, legal advisors, and compliance officers within film production companies must establish that their productions meet all legal and regulatory requirements. However, finding accurate and up-to-date information on legal standards can be challenging, making navigating the regulatory environment and avoiding potential legal pitfalls more difficult.
Here is an overview of legal requirements and standards for film insurance, which is an excellent place to start for studios getting ready to commence their next project.
Overview of Film Insurance Regulations
While every venue and project type may require slight variations in film insurance, some policies are generally required regardless of the production details. Without carrying these specific insurance policies, studios could face:
- Difficulty partnering with venues that will not approve contracts without insurance
- Legal fees from accidents or events for which the studio is liable without insurance
- Lawsuits
- Financial challenges or even complete studio shut down due to high costs of incidents not covered under insurance
Types of Required Insurance Policies
Every situation will be different and necessitate different blends of coverage. In general, all film studios should plan to acquire:
General Liability Insurance
General liability insurance covers a production if someone unrelated to the project is harmed due to filming or if their property is damaged. This can encompass a passerby tripping on a loose cord or having a camera rig detach and crush the top of someone’s car.
Studios will not usually be able to secure venue contracts without general liability insurance coverage. Many locations specify the type of coverage required, who is named, and how much the policy will cover at a minimum.
Workers’ Compensation Insurance
Workers’ comp insurance pays for medical bills, rehabilitation, time off work, and more for crewmembers injured or falling ill as a direct result of the production. Most states will not permit a film to start shooting until it demonstrates that all its workers are adequately protected. Failure to secure workers’ compensation insurance can land a studio in legal trouble.
Errors & Omissions Insurance
Before distributors will disseminate a film, they will need proof of errors & omissions and insurance. They will typically require that they be specified on the policy. E&O protection safeguards involved parties from financial and legal repercussions should an accident cause problems with the completed film.
The most common issues are allegations of copyright infringement, defamation, and trademark violations, but E&O insurance covers many potential scenarios. Intellectual property is among the most commonly contested. It can threaten the distributor’s financial well-being, so they protect themselves by demanding E&O coverage from studios they work with.
State-Specific Legal Requirements
General liability, errors & omissions, and workers’ compensation will almost always be required no matter where a film is shot. However, many states and cities apply additional rules to film production, so checking these requirements when planning a project is essential.
For instance, many films are shot in Los Angeles each year. FilmLA, which assists studios with acquiring the proper permits, will require not only workers’ compensation and general liability insurance but also auto coverage and cancellation insurance. FilmLA must be named as additional insureds directly on the studio’s policies.
Compare this to the insurance requirements of America’s most popular film locations: New York City. While they do not require as many types of insurance to issue a permit for filming, they do specify that the production must carry commercial general liability insurance with a minimum of $1 million in coverage per occurrence; additionally, the city has the right to require this minimum to be higher depending on the contents of the film.
Establish Legal Compliance With MFE Insurance
When it comes to insuring a film production, there is more to the decision than simply what types of policies a studio believes it might need. Abiding by state- and city-specific requirements is an additional consideration that an experienced insurance agency can help you maneuver.
The professionals at MFE Insurance specialize in film insurance and understand the ins and outs of securing permits for any shoot location. Contact MFE Insurance for complete legal guidance and customized coverage options for your next film project.