Film Production Insurance

Entertainment, Producers Risk & Multimedia E&O
Major Motion Picture, Indie, Webisodes, Short Term & DICE

---

Making Movies in the Southwest:
Get 33% more bang for your buck for productions filmed in New Mexico, and we can insure your films and companies!
We insure productions and companies of all sizes with their office address located in California, New Mexico, Arizona or Utah.

Rio Grande Insurance has ten offices across New Mexico (and also operates in California, Arizona and Utah), best suited to comprehensively serve your production. Read further for types of insurance to consider for entertainment productions and services.
Contact Sam Levy, Film Division Insurance Manager, for a quote today:

New Mexico Film Incentives

The state of New Mexico's Film Office (New Mexico Film Commission) and Taxation and Revenue Dept. have created an excellent set of incentives for New Mexico film production:

At the top of the list of New Mexico Film Production 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
Entertainment Industry Insurance Policies (E&O, Producer's Risk, Workers Comp, Liability, Health, Businessowner, etc.) and bonding can be a significant portion of production costs, up to 10% total. 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 over 20 Oscar nominations in the past couple of years.
Just a few of the entertainment projects & major motion pictures recently filmed (and insured) in New Mexico:

The Avengers Odd Thomas Cowboys & Aliens Breaking Bad (TV Series) In Plain Sight (TV Series) Crash (TV Series) Iron Man 2 Indiana Jones and the Kingdom of the Crystal Skull Paul Swing Vote

Thor Crazy Heart Transformers: Revenge of the Fallen Just Like a Woman No Country for Old Men True Grit 3:10 to Yuma Terminator: Salvation Year One See More...

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

There are basically two ways to insure entertainment productions:
(Note: We also insure film industry support companies, including production services, post-production, digital/multimedia, support, etc. - fill in an online business insurance quote)

Film Insurance for a single 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 further below in Coverages, that may be needed. The core "by the production" insurance policies usually are:
  • General Liability (may be packaged as a Businessowner's policy) - primarily covers "slip and fall" for bystanders (not for those involved with the production). This allows you to get film permits, and you can add optional coverages such as:
    • Blanket (unlimited) Additional Insureds (if more than 3 anticipated);
    • Unlimited municipal/law enforcement certificates;
    • Fire Legal Liability
    • Medical Payments (immediate payment without legal action)
    • Waiver of Subrogation (see below in Waiver of Subrogation)
    • Entertainment Production General Liability, as opposed to a normal businessowner's general liability, can cover you anywhere in the United States and Canada, and worldwide by additional endorsement
    • Premiums start at just $100!
  • Businessowners - Includes General Liability and adds Business Personal Property and optional building property owner coverage.
  • Errors & Omissions - Protects claims against rights, music, story, etc. for up to 3 years
  • Producer's Risk - This is the one that has many different elements (see below in Coverages) and can include:
    • Rental Equipment, known as "Inland Marine" (non-owned, paid-for equipment at non-permanent locations)
    • Third Party Property Damage (for non-owned & non-rented equipment that you borrow and use, also referred to as "Care, Custody & Control")
    • Hired and Non-Owned Auto liability & Physical damage
    • Owned equipment "floater" (the entity insured owns the equipment)
    • Special Coverages:
      • Faulty Stock/Drives/Cameras
      • Sets, Props & Wardrobe
      • Animals
      • Stunts, including blanks & squibs, falls, fights, precision driving
      • Pyrotechnics
      • Vehicles, including aerial and water scenes &recreational vehicles
      • Cast Medical related
        & more...
  • Workers Compensation - a state statutory requirement if you employee more than 2 people, that can also easily be provided by your payroll service, or we can provide it for your employees and single-entity contractors, but not for volunteers
  • Temporary Health Insurance - averaging in the $90/month range per person. These are "individual" policies, not "group" policies, but we can issue them for anyone you desire on your production.

  We have special Short Term Single Production comprehensive packages, with $1 million (and up) minimum general liability premiums starting at $500. Basic stunts and cast coverage can be added to these packages at low cost. Other coverage, like Borrowed Equipment, Automobile Liability and/or Auto Physical Damage,

  Short Term I	Short Term II
  Less than 60 days, continuous coverage 10-11 continuous days included for minimum premium Add $100,000 rented equipment for another $300 (higher limits available) Gross Production Budget less than $1 million General liability covers anywhere in the US or Canada (other countries at additional cost)	Less than one year production time range Gross Production Budget less than $2 million General liability covers anywhere in the US or Canada (other countries at additional cost)

  We have a simplified application that you can fill out and we can get you a very fast quote.
  Download a PDF of the Short Term Film Productions application here
  and fax it to (505) 984-8238, Attention:Sam (or scan and email to )
  OR
  Fill in our online short term production quote form to get a quote right away by email

For larger productions, please call Sam at (505) 984-8216. The text version of the application we will first need for productions with budgets over $250,000 can be seen here, and we will also need current copies of script, one-sheet/synopsis, complete budget, specific verification of amounts of cost of all hired vehicles, and a shooting schedule.

A warning on co-production agreements a.k.a. sub-selling scams

There are organizations and educational institutions that conveniently offer paper-only co-production arrangements that can seem to have a number of benefits to producers. One of those benefits can be presented as low or no cost production insurance and general liability.

It's not easy for you as a producer to keep everything on time and on budget. You make deals, alliances and partnerships to solve situations in everything from funding to distribution. Especially with smaller productions, film insurance can seem like an unfairly high expense that you'll never really need to use. However, is saving a couple hundred dollars on your production really worth risking the loss of your home, your savings and 75% of every paycheck forever?

Please see our article on co-production agreements: Don't Lose Your House! Is Your Production Actually Insured?

Other film insurance articles we've written:

Predicting the Future: Types of production insurance & what may not be covered

Insurance options for multiple projects and the entertainment industry

A word on Film Completion Bonds

Productions may also desire (or lenders require) a film completion bond. This is not like any other type of insurance bond, but a much more involved product, taking over a month just to quote. A film completion bond is strongly in the interest of the lenders, but not always in the best interest of the producers and director, who risk losing control of the production if the budget is in danger of going over. Film completion bonds are not a "brokerable" product, and are much more than just "bonds," which means that no one but a direct bond company employee can act as a film completion bond agent.

To quote a bond, you will need to contact a bond company directly.There are really only three players in the completion bond business:

• IFG (a division of Fireman's Fund, owned by Allianz of Germany),
• cineFinance &
• Film Finance

Ongoing/Annual film insurance for a company, individual or support industry company

• For companies, this is for the ongoing, annual production of DICE or similar works
  (DICE = Documentaries, Industrial, Commercials & Educational)
  DICE/Annual 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.
  • We have a special "plain vanilla" DICE package at great rates
    To be eligible for the "vanilla" DICE/Annual Productions programs, the productions must:
    1. Have annual gross production costs less than $5,000,000;
    2. Shoot only in the US, Canada and their territories and possessions;
    3. Not have Pyrotechnics, Aircrafts, Boats, Animals, Fight Scenes, Blanks, Squibs, Guns, Live Gangster Rap Music.
    4. Stunts and Cast Coverage are available at additional cost.
       We have a simplified application that you can fill out and we can get you a very fast quote.
       Download a PDF of the DICE application here
       and fax it to (505) 984-8238, Attention:Sam (or scan and email to )
    5. The below types of productions are generally acceptable in the "vanilla" program
• Even if you do not qualify for the "vanilla" DICE package, we have other DICE and ongoing/annual policies - please email or call Sam at (505) 984-8216.
• Similarly, we write commercial insurance for film industry support companies - we have relationships with entertainment industry specialty insurance and can shop to find your best value, regardless of what your company does with the entertainment business.
• 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 the next section, Coverages), then very often a DICE policy will provide more comprehensive and broader coverage for less, and is therefore the better value.
  
  Example: A "monoline" (standalone) general liability policy, for example, may only cover you for "slip and fall" at your recorded place of business, whereas the film insurance general liability included in a DICE policy covers accidents anywhere in the US and Canada (and other countries by add-on, or endorsement).
  

What are some of the Producer's Risk policy and other film production insurance coverages?

Equipment, Props, Sets and Wardrobe

Camera, sound, lighting and miscellaneous rented equipment. Owned equipment can be covered separately (on an owned equipment "floater" policy). Props, sets, and wardrobe are covered.

How much should I insure for?
The insurable value should be the total value of your rented equipment, props, sets, and wardrobe from all vendors. Owned equipment should be covered for their replacement cost.

Can the deductible be changed?
No. The deductible is based on the total limit of equipment, props, sets, and wardrobe.

Are "Loss Payees" included?
Equipment insurance includes your vendors being provided with certificates of insurance naming them as loss payee in the event of a loss. Unlimited certificates can be issued.

Negative Film or Videotape & Faulty Stock, Camera & Processing

Damage or destruction of raw film or tape stock, exposed film or videotape, faulty stock, faulty cameras or lenses.

How much should I insure for?
The limit is the budget you declare as your largest single production.

Extra Expense

Extra expense reimburses the insured for the out-of-pocket expenses in the event of the interruption, postponement or cancellation of the declared production, as a result of loss, damage or destruction of property or facilities contracted for use by the insured.

For short term productions, this can be declined, or coverage begins as low as $10,000, $25,000, $50,000 and $100,000
Feature productions/Series may specify limit desired

Third Party Property Damage

Covers damages to property and personal property owned by others and loaned to you, while it is in the care, custody and control of you the insured (i.e. damage to a house that you are shooting in or to an item that you borrow to use but do not pay for).

For short term productions, this can be declined, or coverage begins as low as $250,000, $500,000, $1,000,000, $1,500,000 and $2,000,000
Feature productions/Series may specify limit desired.

General Liability

Covers the insured for losses to "others" (generally speaking non-involved third parties) due to bodily injury or property damage caused by the insured';s employees or agents. Locations will require general liability of at least $1,000,000, but please note that general liability does not cover the location itself. The term aggregate is the total liability limit. The occurrence is the limit per claim.

What types of bodily injury and property damage are covered?
Generally speaking, you the insured are covered for acts of negligence by you, your employees and people acting on your behalf for the production against non-involved third parties (such as bystanders and other incidentals). People involved in any way with the production are not covered for their own bodily injury or damage to their own property (such as a house that is lent) as a result of work on the production under general liability coverage. In order to cover bodily injury for those working on the production, you would need workers compensation for those on payroll and temporary or supplemental medical and accident coverage for volunteers. For property damage of property owned by people working on the production, you need "third party property damage" (care, custody and control), owned equipment or inland marine/miscellaneous rented equipment coverage.

Are "additional insureds" included?
With blanket additional insureds, your vendors and locations will be provided with certificates of insurance naming them as additional insureds in the event of a loss. Unlimited certificates can be issued.

City and other special certificates
Cities, police and highway departments and other entities may require “special wording" on their certificates or have a special form they require be completed. Film permit offices will require this.

Waiver of Subrogation
The insurance company is prevented from suing entities with whom you have a contractual relationship. See description below.

General Liability limits are quotes as Per Occurrence/Aggregate Limit, and are generally available as:
$1,000,000 (per occurrence)/ $1,000,000 (aggregate)
$1,000,000/$2,000,000
$2,000,000/$2,000,000
$3,000,000/$3,000,000
$4,000,000/$4,000,000
$5,000,000/$5,000,000
Feature productions/Series may specify limit desired.

Automobile (Hired & Non-Owned)

Vehicles rented for the production.

Automobile Liability covers injury to third parties or damage to their property.
Available as "Combined Single Limit per accident" coverage of one to five million dollars.

Automobile Physical damage provides coverage for damage to the vehicles.
Available for short term production either as $125,000 limit per vehicle or $250,000 limit per vehicle, both with $500,000 aggregate limits. Feature productions/Series may specify limit desired.

Excess Liability

This provides excess liability over the general liability and/or automobile and can be obtained in increments of 1,000,000.

Cast Coverage

1.  Cast Extra Expense Coverage Form (NAS-ABCEE-POL) 
This is the base cast coverage form.  Similar to industry standards, this form provides Cast Coverage but requires that cast members be scheduled.  Cast members may be scheduled for Accident & Death only, if medicals are not obtained.  Sickness coverage may be added if acceptable medicals are obtained.

2. Cast Schedule of Covered Persons (NAS-AB-715)
The form that schedules specific cast members (or crew).

3. Cast Blanket Extension Excluding Sickness (NAS-AB-702) 
Coverage for Accident & Death, up to the cast limit, without having to schedule people.  All production personnel are covered including actors, crew, stunt coordinators, sound recorders, directors, camera operators, production managers, etc. 
[For DICE policies, the actual productions do not have to be scheduled for this coverage to be in effect].

4.  Cast Blanket Extension Including Sickness (NAS-AB-701)  
Coverage for Accident, Death and Sickness, without having to schedule people.  Provides up to 25k per person, 100k aggregate with a 3500 deductible.  Covers all production personnel. 
[Again, for DICE policies, the actual productions do not have to be scheduled for this coverage to be in effect].

5. Cast Family Bereavement Extension (NAS-AB704)  
Provides a bereavement period of up to 5 days due to the death of an immediate family member.

6. Cast Essential Person Extension (NAS-AB-703)  
Covers the abandonment of the production due to accident, death, or sickness of a scheduled person.  Medicals are required.

What types of stunts are elegible for the special short term package insurance?

You now have the option to "buy back" some of the stunt coverage previously not allowed with our special short term film production package:

• Aerial Scenes

  Shoots from aircraft including airplanes, helicopters, gliders and balloons.

  Includes scenic shots from private or commercial aircraft that do do not involve aerial acrobatics or other hazardous maneuvers.
  

  Does not include aircraft liability.

• Falls

  Covers scenes involving scripted and choreographed falls.

• Fight Scenes

  Fight scenes that are choreographed, structured, and sequenced. These scenes may involve physical contact between actors and the use of weapons.

• Recreational Vehicles

  The use of recreational vehicles such as ATV's, go carts, mopeds, motorcycles, scooters, segways, snowmobiles, and similar type vehicles.

• Water Scenes

  Canoes, kayaks, shots on lakes, shoots primarily in water, surfing, pools

  Does not provide watercraft coverage. But we do offer watercraft coverage with our "movie boat" program, please inquire

   

• Weapons

  Scenes that involve prop guns, squibs, blanks, knives or other similar weapons.

• Precision Driving

  Controlled driving on public roads, race tracks, off-road (no racing, skidding, collisions).

• Animals
  Scenes involving the use of animals, such as dogs, farm animals, household pets, and zoo animals

What types of productions are elegible for "plain vanilla " DICE/Annual Productions insurance?

What is a "Waiver of Subrogation"?

Subrogation means, in a legal sense, one party has the right to "step into the shoes" of another party for the purposes of bringing a claim for damages. Not all types of claims may be subrogated. The most common type that can be subrogated is property damage claims.

Example: Joe is an electrician insured by BIG Insurance Company. He is hired by Amusement Park World to replace light bulbs in the parking lot for the park's opening in the Spring. Amusement Park World requires Joe to sign a Waiver of Subrogation stating that BIG Insurance Company will not be able to recover (from Amusement Park World) any money paid for damages to Joe's truck if he hits any of the huge potholes in Amusement Park World's parking lot (a claim for which they would normally be liable).

A waiver of subrogation clause is placed in a contract to minimize lawsuits and claims among the parties. The result is that the risk of loss is agreed among the parties to lie solely with the insurance company. The risk, once assigned to the insurers (insurance companies) by the parties, is determined to stop there, without allowing the insurer to seek redress (legal cation) from any party who may be "at fault" for the loss/claim. In order to add a Waiver of Subrogation to your insurance policy, you will either need to state the number of parties with whom you have such agreements, or you may purchase a blanket waiver of subrogation that will apply to all entities with whom you have a contract with a waiver of subrogation clause.