Rio Grande Insurance

Making Movies in New Mexico:
Get 33% more bang for your buck!

The state of New Mexico's Film Office and Taxation and Revenue Dept. have created an excellent set of incentives for New Mexico film production. Kudos to commissioner Lisa Strout and Governor Bill Richardson.

At the top of the list of incentives is a 25% rebate on all production expenditures, including labor and talent. This rebate applies to feature films, television, regional and national commercials, documentaries, video games and post-production. Apples-to-Apples, it costs only 75% as much to make the same movie in New Mexico! If you use an in-state payroll service, you can also get the rebate on out of state talent expenditures. There is no minimum spend required, no cap, and no sunset clause. See nmfilm.com's rebate cheat sheet for more information.

Rio Grande Insurance is your financial strategy partner
Insurance (E&O, Producer's Risk, Workers Comp, Liability, Businessowner, etc.) and bonding can be a significant portion of production costs. Rio Grande is your financial partner to reduce these expenses, shop for your best value and get excellent coverage. All insurance premiums at Rio Grande are elegible for 25% rebate from the state.

New Mexico-made movies received 14 Oscar nominations in 2008.
Just a few of the entertainment projects & major motion pictures filmed (and insured) in New Mexico:

• Transformers
• No Country for Old Men
• The Astronaut Farmer
• 3:10 to Yuma
• Sex & Lies in Sin City
• Crash (series)
• Terminator: Salvation
• In the Valley of Elah

So, just what type of film insurance do you need to consider?

There are basically two ways to insure the entertainment industry:

1. By the production

• This is for the producers of individual productions who need coverage for a specified budget in a specified period. There are many individual coverages, described below, that may be needed. The core "by the production" insurance policies usually are:
  • General Liability (may be packaged as a Businessowner's policy)
  • Errors & Omissions
  • Producer's RIsk - This is the one that has many different elements
  • Workers Compensation - a state statutory requirement
• Productions may also desire (or lenders require) a film completion bond. This is not like any other type of insurable bond, but a much more involved product. Film completion bonds are not a "brokerable" product, which means that Rio Grande cannot act as your film completion bond agent.

1. By company or individual

• For companies, this is for the ongoing, annual production of DICE works (Documentaries, Industrial, Commercials & Educational). DICE policies can consist of producer's risk, general liability, hired and non-owned auto and maybe an equipment floater. DICE may need workers compensation depending on number of employees or individual contractors.
• For individuals, they may often need only a small, a la carte set of business owner coverages (like liability and an equipment floater only), however if they need more than 3 coverages (see below), then very often a DICE policy will provide more comprehensive and broader coverage for less, and is therefore the better value. In addition, a "monoline" (standalone) general liability policy, for example, will only cover you for "slip and fall" at your recorded place of business, whereas the general liability included in a DICE policy covers accidents anywhere in the US and Canada (and other countries by add-on, or endorsement).