Any film can be daunting, but large-scale and feature films are an incredibly significant challenge. From their hundreds or even thousands of staff to the broad scope of filming and the numerous locations and tools necessary to keep the film on track, there are plenty of opportunities for things to go wrong.
Insurance for feature film production is the best way to secure a studio against the financial and legal repercussions of mistakes, accidents, and oversights while filming. Under the more extensive umbrella of overall film production insurance, studios should consider which niche policies would most benefit their project.
It is wise to purchase multiple types of liability insurance instead of relying solely on a single policy to cover the scenarios and risks unique to that specific production or genre.
Here are some bigger-picture liability insurance essentials for large-scale film production so you can be confident in your insurance decisions.
The Importance of Liability Insurance
Liability insurance is non-negotiable for any film; in fact, most locations and partners will not permit filming or grant permits to sites until the production studio can demonstrate that it has some minimum level of protection from a liability insurance policy.
Liability insurance covers the studio if something it is doing causes harm to someone else or their property. Having multiple liability policies is essential because harm can come in many potential forms: physical, intellectual, and more.
Types of Liability Insurance Policies
Production studios should invest in more than one type of liability insurance to achieve the most comprehensive insurance coverage. The most common selections include:
- General liability insurance – Most productions cannot occur without general liability insurance, as studios will find permitting difficult or impossible if they cannot demonstrate a policy. Specific locations or partners may require a minimum coverage amount, so most studios elect coverage of at least one million; however, review the contracts specific to your project and the potential value of your production to determine the correct number.
- Umbrella insurance – Sometimes, a film project requires more liability insurance than the studio’s general liability policy can provide. In this case, an umbrella insurance policy can expand the coverage of another policy to increase the coverage limit for further protection.
- E&O insurance — E&O, or errors and omissions insurance, protects a company against being financially or legally liable for mistakes made during production and film compiling. For instance, when the hit movie Avatar was released in the late 2000s, the studio was hit with a lawsuit alleging that they had stolen the movie concept from a pitch received years earlier. E&O insurance covered the financial burden of securing legal representation to fight this claim and keep credit where it was due.
- Cyber liability insurance – In large productions, hundreds or even thousands of individuals’ personal information must stay with the studio—for payment purposes, healthcare coverage protection, and more. Should this information be leaked during a cyberattack, the studio could suffer significant financial damage without cyber liability insurance. This is especially essential for productions working with A-list talent, whose personal information is an appealing target for attackers.
How to Choose the Right Insurance and Agency
Choosing the ideal insurance for your large-scale film production comes down to the insurance agency, the budget, and the project scope. Producers should spend time ahead of potential insurance meetings determining the most significant risks for the duration of filming and beyond.
Action movies, for instance, do not face the same risks as documentary productions. The best insurance agency will be one with extensive experience in the film industry that can provide personalized guidance based on the details of the film project.
They can help you pinpoint the risks you may not have noticed for your production. Additionally, they should be sensitive to the studio budget and work to bundle protection and decrease costs where possible. Always read the fine print of each policy and ensure it does not exclude essential elements of your production plans.
Secure Your Film’s Future Today
Insurance is one of the most important elements in feature film production, but purchasing a cheap and basic insurance policy is a waste of money if it does not cover your studio’s activities when they really matter. Safeguard your production with the help of MFE Insurance Brokerage’s tailored liability solutions.
Contact MFE Insurance to discuss the scope of your project and learn more about the many types of liability insurance that may be right for the specific risks you are facing.