Film production insurance protects your production company and/or project from related liability by covering a specified value amount.

Since no two projects are alike, a good film production insurance policy is tailored to a production company’s needs at the time of purchase.

Every production insurance policy needs to be tailored for the company if an annual policy. Or for the project if a short term film production policy.

A film insurance policy is based on the best offerings from insurance companies that provide entertainment production coverage.

In general, a solid policy will protect the producer from liability related to injuries on set and any accidents in working vehicles.

Also covering theft and 'loss and damage' of rented and owned equipment. Policies can also protect the producers from other libel or copyright infringement claims.

Short Term production insurance covers your productions on a project-by-project scale. Purchased on a production-by-production scale, short term production insurance policies can cover as little as one day of production (although you should cover your prep days).

Planning to shoot multiple times throughout the year?

Then you'll want an annual policy. 

Covering all the projects you’re working on at once, annual policies are most typically employed by active production companies.

It is always a good idea to quote both annual and short term production insurance policies when shopping for insurance.

You will often find that the difference in price is nominal when considering the longer period covered.

Year-round video production insurance is a good idea if you:

• You have a production company.

• You own equipment that you rent to productions.

• You are a freelance producer with 4+ productions a year.

• You are producing an a independent film.

​Although film production insurance policies vary widely, you’ll always need general liability.

General liability covers bodily injury and property damage that occurs during the course of filming. Cast and crew are exempt from this and covered separately through a workers compensation policy.

This coverage is required by most city/county permitting offices in order to obtain a permit.

Most film production insurance policies start with coverage for rented and owned equipment, such as the camera, grip and lighting gear.  

Most rental houses for professional production gear require 100k -500k minimum for rental equipment. Regardless of what is actually rented.

A coverage area is where your film insurance policy takes effect. If you’re purchasing short term production insurance, just opt for coverage wherever your shoot is taking place.

If you’re purchasing an annual policy, however, it is important to make sure your coverage areas include anything you might need.

If you are purchasing a domestic policy (US), are you covered in all states? If you are purchasing international coverage, are you covered in the areas where you most often work or shoot?

​Add coverage for an additional fee is possible, but it is most cost effective to broaden coverage when securing the original film insurance policy.

Workers compensation protects you should something happen to your employees on the job. It's important to go over how you are covering crew (employees) and independent contractors.

You need a worker compensation policy if...

• You work as an independent contractor or freelancer.

• You are paid full rate no taxes withheld (from a provided invoice).

• You provide the production with a w-9 for labor or labor & gear.

Your workers compensation policy...

• Can cover your payrolled cast & crew, 1099 freelancers and volunteers.

• Can cover your working crew in periods outside of general production.

• Meet the legal requirement of an independent contractor.

• Protects you from claims arising from injuries to your crew

• Provides for you in the case of injury on the job.

• Covers medical costs, loss of work or death benefits if injuries occur on the job.

Remember that stunts can always be added to an existing policy. These items can be added for 'x' amount of day or for the remainder of a short term or annual policy.

​Types of Stunts:

• Pyro (fire, flashboxes, squibs, explosions, pyrotechnics effects)

• Stunts / Falls (any stunts)

• Aircraft Insurance (renting of helicopter or plane to film or transport crew)

• Aerial Photography (shoot from helicopter, planes, balloons, gliders)

• Weapons (live ammunition)

• Animals (working animals)

• Water and Underwater (filming on in or using gear underwater)

• Recreational Vehicles (Motorcycles, ATV, Snowmobile, go-kart)

• Drones (UAV used during filming)

Media Liability insurance (also known as "Errors and Omission") is required for any project that is distributed for profit.

If your film is sold or put on iTunes and there is an issue with the content, Media  Liability insurance will cover the harm caused by the circulating product.

All television, theatrically released films, and broadcasted programs require Media Liability Insurance.

A Completion Guaranty (also known as a "Financial Gauranty" or "Completion Bond") is a written contract that guarantees a motion picture will be finished and delivered on schedule and within budget. The majority of films produced and fully financed by the major Hollywood studios are, in effect, self-guaranteed. However, most independently financed films, including many that are released and distributed by the major studios, require a completion guaranty.  The completion bond marketplace has consolidated in recent years and the remaining surety companies will not consider a submission under $5,000,000 without an equal amount of collateralization.

A producer usually secures a completion bond guaranty for the benefit of the bank or other financiers who agree to make the necessary production funding strike price available to the producer.

In general, a completion bond guaranty assures banks and financiers that:

1. The producers will complete and deliver the film in keeping with the screenplay, budget and production schedule that the bank or financiers approved; or

2. The completion guarantor will complete and deliver the film in keeping with such pre-approved screenplay and production schedule, and advance such sums in excess of the pre-approved budget necessary to do so; or

3. In the event production of the film is abandoned, the completion guarantor will fully repay all sums invested in the film by the bank or financiers.

The “strike price,” or the “production price” as it is sometimes referred, is the amount that the completion guarantor believes will be needed in order to complete and deliver the film. The strike price will generally comprise (1) the budgeted “above the line” and “below the line” production costs, including fringes and insurance costs; (2) interest and financing costs, if applicable; (3) the completion guarantor’s fee; and (4) the contingency allowance. For the completion guaranty to be effective, the full amount of the strike price must be made available for production of the film.

The first proceeds from distribution will go to pay off any loss of the bonding company.

In order to determine whether a proposed film project presents an acceptable production risk, the completion guarantor will carefully examine and evaluate all significant factors facing the production. This process begins with the producer submitting to the completion guarantor the following main elements: script, budget, shooting schedule, résumés of key crew and descriptions of the project’s financiers and their respective financing commitments. Generally, completion guarantors prefer that the film’s distributors and financiers approve these key elements before they are submitted, however CineZoom.Media™ is prepared to thoroughly evaluate them beforehand.

After reviewing these main elements, the completion guarantor will want to meet with members of the production team, such as the individual producer, director and production manager, to obtain their views about the production budget, shooting schedule and other production matters. Sometimes, the producer chooses to adjust elements in light of recommendations made by the risk manager. On the basis of these meetings and the final materials submitted, the completion guarantor determines whether the production can be produced, completed and delivered as presented. If the submission is approved, the completion guarantor will prepare the completion guarantee agreement and other necessary legal documents.

Once the completion guarantor determines that the production can be produced, completed and delivered as presented, the producer will need to enter into a producer completion agreement.  In this agreement, the producer makes representations and agreements concerning the production and grants the completion guarantor certain rights to monitor and oversee the production to ensure that the film will be completed and delivered in accordance with the approved screenplay, budget, production and delivery schedules. If there are conflicts between the rights and obligations of the producer, distributor, completion guarantor and financiers under the various contracts relating to the production and delivery of the film, those parties will usually enter into an inter-party agreement to resolve such inconsistencies. The inter-party agreement, if applicable, is usually prepared by the principal financier’s legal counsel. The producer will be asked to furnish certain required documents and contracts to the completion guarantor for its review and approval.

The completion guarantor will require the producer to include an adequate contingency allowance in the budget. The contingency allowance may be a flat sum, but in most instances it is a fixed percentage of direct production costs (i.e., all production costs other than the contingency, interest and finance costs and the completion guaranty fee). Various factors will determine what amount the completion guarantor will find adequate for any particular film, however the contingency is normally 10% of direct production costs. The contingency allowance will be included in the strike price and accordingly, the completion guarantor will only be responsible for cost overruns after the financiers have made the contingency allowance available to the producers to cover the budgeted cost of production, completion and delivery. In certain situations, producers and others may agree to defer all or part of their fees if needed to fund the contingency allowance.

The completion guarantor must be satisfied that the production stays within budget and on schedule. Accordingly, the completion guarantor is given certain rights to monitor and oversee the production of the film. The producer will be required to furnish the completion guarantor with cost reports, production reports, cost projections and other customary motion picture measures of progress.

If at any time the completion guarantor expects that the film will not be produced, completed and delivered as promised, it may place a representative at the production site. Or, usually as a last resort, the completion guarantor may assert its right to “take over” some or all aspects of the production in an effort to minimize the risk of incurring liability under the completion guaranty. If a production is not progressing within budget and on schedule, CineZoom.Media™ will strive to take a course of action that is least intrusive to the creative process of producing the film. In most cases, the course of action taken is determined only after meeting with the filmmakers and there has been an open exchange of ideas leading to sound, collaborative solutions.

Before determining the fee for a particular production, the completion guarantor considers several factors, including the director’s and production team’s experience, the film’s budget and associated production risks. As such, fees vary from film to film. Though sometimes a flat sum, the guaranty fee is normally expressed as a given percentage of direct production costs (i.e., all production costs other than the contingency, interest and finance costs and completion guaranty fee).

Some completion guarantors charge an up-front fee and agree to rebate a portion of it to the producer if no claims are made after the film is delivered. This is sometimes referred to as a “no claims rebate.”

A Union Bond (also known as a “Wage and Welfare Bond”) is required in cases when a company wants to hire an employee represented by a union, such as DGA, IATSE, SAG-AFTRA, or WGA. The bond guarantees that the employer will cover all due payments on wages and welfare for the union employee.

Union bonds are financial guarantee surety bonds. They work as a contract between three parties. Your company is the principal asked to get bonded. The obligee is the entity requiring the bond, usually the union of the employee. Finally, the surety is the bond underwriter.

In case the business does not meet its obligations towards union employees, a claim can be made on the wage and welfare bond. If proven, the company needs to compensate the claimants in full.

Because of the direct financial reimbursement involved, union bonds are high-risk. That’s why obtaining them requires posting collateral in most cases.

Who needs to obtain a union bond?

Companies that want to employ people who are members of a union are required to obtain wage and welfare bonds.

Often, businesses settle collective agreements with unions about the conditions under which they can hire union members. Usually union bonds are decided on then. Every union sets the conditions and bonding amount individually.

Are there different types of union bonds?

While there are different names for union bonds, by and large they serve the same purpose: to protect union workers from non-payment of wages and benefits on the side of their employers.

There are some variations between union bonds across the U.S. Each wage and welfare bond is slightly different, as each union decides on the specific conditions to be set in it.

Some of the ways in which union bonds are referred to include wage fund bonds, wage and fringe benefits bonds, welfare fund bonds and fringe benefits bonds. In case the name mentions only welfare or fringe benefits, this means that the bond guarantees the due payment only of these benefits and not of wages. 

How much does a union bond cost?

The price of your union bond, first and foremost, depends on the surety bond amount required by the union that represents your employees. It is often settled during negotiations between unions and companies, and applies to all workers in that union.

Because union bonds are high-risk bonds, your bond price is not calculated the same way as other surety bonds’ cost. There have been numerous cases of claims on wage and welfare bonds, which makes posting a collateral, often 100%, a usual requirement when getting a union bond.

Besides the collateral, you need to cover a bond premium, which is a fraction of the surety bond amount.

To set your bond premium, your surety will still consider your personal credit score and overall finances. If they are both strong, you are likely to get a lower bond premium in the range of 1%-4% of the bond amount.

Regarding the collateral, often it is difficult to avoid posting it. However, if you have long-term relations with your surety, a good history working with them, and strong finances, you might be able to pay only the bond premium and skip the collateral.

To receive a quote, please click on the link below to complete an online application.

• Short Term Productions

• Production Portfolio

• DICE/Annual Productions

• Foreign Productions

• Equipment Floater

• Media Liability

• Financial Guaranty

• Union Bond

Note: Remember to answer all pertinent questions in detail will speed up the quoting process.  Leaving questions unanswered will slow it down.