The size of the film industry is immense, with a value in excess of $42 billion. It may be accepted that feature films and blockbusters require massive budgets to pay for the hundreds or thousands of employees hired to handle film equipment.
Still, even with smaller or shorter projects such as commercials, music videos, documentaries, or corporate videos, there’s significant unseen work. The complexities of lighting and sound equipment—not to mention the cameras—are just a few of the difficulties that these professionals face daily.
With the complexity of equipment management, protecting such equipment from theft or damage is an essential part of any shoot. Purchasing film equipment insurance is the smart move for producers because this coverage includes the essential components of film production—even before and after the shooting begins.
What Does Film Equipment Insurance Cover?
Film equipment insurance should be part of a larger production insurance package, likely as an element of general liability insurance. General liability insurance offers financial compensation after property damage or when someone suffers a bodily injury at an insured location. Expanding generalized property damage coverage to film equipment is, therefore, the purview of the same insurer in most cases.
Film equipment can be incredibly expensive, and if a producer has to replace it out of their pocket due to theft or damage, the financial repercussions could undermine the entire project. Because of the high cost of this type of equipment, it is seldom bought outright.
Instead, many studios and production teams rent their equipment, which saves on cost but puts them in danger of legal consequences should something happen to the tools. Suppose the equipment is not insured and gets damaged.
In that case, the renter is responsible for replacing the equipment and navigating legal fees and reimbursement with the equipment’s owners. This is why film equipment insurance coverage is necessary, regardless of who owns the cameras and other rigging.
Before Production
It might not be obvious how necessary coverage is before production begins. Pre-production in filmmaking is the time reserved for planning the project. This means that producer meetings, writing, scheduling, and casting actors are conducted in this timeframe. Pre-production does not usually include cameras or film equipment. However, it often includes the renting, testing, and transporting this equipment.
An insurance policy offering generalized property coverage may not properly protect studios during pre-production. When equipment is being transported, and there is not yet an insured set, damage during this stage could fall between the cracks of existing policies. Be sure to check the details of a film equipment insurance policy to ensure that it offers related cargo or transportation coverage.
During Production
Comprehensive coverage is necessary during the main production of a film project. Depending on the nature of the project, the actual filming will take place in several locations. Feature-length productions could have hundreds of shooting locations, while some commercials only need a single sound stage.
No matter the project’s scope, coverage must extend to all locations the equipment will go to. Permits for shooting locations cannot be legally obtained without proof of coverage. The bare minimum in equipment protection may not be enough should something go wrong.
Additionally, some shooting locations will cost more to insure than others, as they may have varying levels of safety. Outdoor shoots, for instance, come with added risk to cameras and other equipment, either from theft or exposure to weather.
After Production
Post-production commences when principal photography ends. Post-production includes editing the footage together to create the final film. It also includes advertising, music syncing, and much more. Producers should still keep their film equipment in the event that additional takes or supplemental filming is deemed necessary after editing, which means insurance coverage should also continue.
Editing requires a lot of its own unique equipment as well. While it is common to use standard digital editing software, some editors prefer more nuanced or specific equipment that requires insurance.
Whichever method is used, the equipment that powers post-production can be deceptively valuable. If computers or drives are damaged or stolen, the film could be destroyed or rendered incomplete. In the worst cases, insurance can offer the financial boost necessary to attempt to salvage the production.
Get Film Equipment Insurance From an Experienced Broker
Film equipment insurance and related coverage plans for film production are best purchased from insurers with years of experience working within the nuances of the entertainment industry.
The experts at MFE Insurance have partnered with studios across industry niches, from feature films to small advertisements and more. Contact MFE Insurance to discuss how your team relies on film equipment and the insurance coverage that can cover your most pressing risks.