Essential Takeaways:
- Film insurance requirements can vary by shoot location and type, but a strong video production insurance portfolio can address all needs at once.
- Commercial shoots are especially susceptible to liability issues and errors and omissions, which makes insurance even more important.
- The most common types of coverage included in the scope of video production insurance are general liability, equipment, cast & crew, and errors & omissions.
Commercial film projects are just one of many types of shoots, but they encounter risks that may differ from those of feature film productions and other projects. If you have previously secured insurance for those types of tasks, you may be surprised to learn that you should reconsider your coverage. Film production insurance coverage works best when customized to the specific type of project and its associated risks.
But what does production insurance cover? In the case of commercial shoots, challenges related to trademark, defamation, and similar issues tend to become more frequent, and preparing for such possibilities is essential for smart coverage. If you are considering video production insurance for commercial projects, be sure you understand what coverages are most important and why.
Do Commercial Shoots Need Production Insurance?
In short: yes, commercial shoots should secure production insurance. Without it, you may experience financial strain due to potential issues such as lawsuits, equipment repair, or replacement costs. Insurance can help to cover these costs.
In general, commercial productions should approach insurance differently from smaller, hobbyist, or feature-film projects. Commercial films typically require broader coverage due to their higher budgets, larger crews, and client expectations for the finished product. Without these, your studio could be financially responsible for the costs should something go wrong.
What Does Video Production Insurance Cover?
Video production insurance is not a one-size-fits-all type of coverage. The best insurance will be customized to your specific situation, addressing the risks particular to your production. Most production insurance packages will include at least the following:
General Liability
Film studios should not begin work until they have secured general liability insurance. In fact, many locations will not permit filming until studios can demonstrate minimum protection in this area.
This coverage addresses the risks associated with third parties engaging with the production. For example, if you are filming in an office building for a client and someone trips over a camera cable in the hallway, they could injure themselves. Your studio would be responsible for paying for their medical treatment. Similarly, if you bump a camera into a wall and leave a dent, you are liable for that damage unless you have general liability insurance to cover the cost.
Equipment
Whether your project requires advanced lighting or just a few cameras and microphones, equipment is one of the costliest aspects of a film shoot. Without equipment insurance, your studio could be required to pay out of pocket for repairs or replacements for damaged equipment. Conversely, equipment insurance can help to cover these costs, mitigating the financial strain and keeping your project on schedule.
Cast & Crew
On-set accidents and production delays can run you afoul of schedule agreements and may require you to pay medical costs for the people working on the shoot. Without cast & crew insurance, those costs might come directly from your pocket, which could mean shouldering the expense of hiring new talent, adjusting payroll, or other expenses associated with shifting employees.
Errors & Omissions
One of the most important types of insurance for commercial shoots, and also one of the most overlooked, is errors & omissions protection. Commercial video production insurance without this essential inclusion could leave your entire studio exposed to significant financial risk, such as paying settlements in a lawsuit that could cost tens or even hundreds of thousands of dollars.
Most commonly, E&O coverage kicks in when a studio accidentally violates a trademark or copyright, or breaches an element of their distribution contract. In the commercial niche, which is less often fiction-focused, the risk of defamation is also higher. E&O insurance can minimize the financial harm of these slip-ups.
Get Commercial Video Production Insurance Customized To Your Project
As you consider the best way to secure your commercial shoot, evaluate your insurance coverage and confirm it aligns with the scope and risks of your project. By selecting the right coverage, filmmakers and production companies can minimize financial risk, establish compliance with client contracts, and operate with confidence on set.
The professionals at MFE Insurance have been creating customized coverage for film studios for many years, and we understand the exclusive challenges of commercial productions. Contact MFE Insurance to get started with personalized guidance.