We are finishing up our foray into the magic of movies and their multiple perils. According to movie and insurance industry professionals, few insurane companies provide all the different policies a production would need. It apparently takes a cast of thousands of risk managers to determine what kinds of coverage and what limits are appropriate for any given movie.
In our last post, we left off with “in front of the camera” and “behind the camera” risks. When a movie crew takes over a Fort Lauderdale hotel for three days, new perils come up. The production company risks liability for damage to the property; the answer is third-party damage “in front of the camera” coverage.
That kind of insurance won’t cover losses from faulty film stock or malfunctioning cameras. More coverage is necessary, and brokers will recommend faulty stock coverage or all-risk coverage for the negatives, the “behind the camera” coverage.
Then, of course, there are completion bonds, a kind of guarantee that a production will be finished on schedule and on budget. The bonds are not traditional insurance, but they do deserve a mention.
The increased use of technology in filmmaking has spurred the development of a new kind of insurance: cyber liability coverage. The risk covered in this case is having bootleg copies of the movie made and circulated. That can happen before or after release.
Technology and information-sharing are emerging risk areas for insurance companies. As quickly as the industry changes — and that’s fairly quickly these days — insurers will have to move even faster to stay in the spotlight.
Source: Insurance Journal, “Insurance Plays Key Supporting Role in Movies,” Jonathan Schwarzberg, Feb. 23, 2012Share