Annual Production Insurance is a comprehensive policy designed for production companies involved in ongoing or multiple projects throughout the year. Instead of purchasing separate insurance policies for each production, companies can cover all their projects under one annual policy, simplifying insurance management and often reducing costs.
Why Do You Need Annual Production Insurance?
Protect All Productions Under One Policy
Having a single policy that covers all productions throughout the year ensures consistent coverage. It eliminates gaps in coverage that might occur when managing multiple short-term policies.
Comprehensive Coverage for Multiple Projects
Annual Production Insurance typically includes:
- General Liability: Protection against claims of bodily injury or property damage to third parties during any of your productions.
- Equipment Coverage: Insures owned and rented equipment against theft, loss, or damage across all projects.
- Property and Set Damage: Covers damage to sets, props, wardrobes, and other production materials.
- Workers’ Compensation: Provides benefits to employees who suffer work-related injuries or illnesses on any project.
- Errors and Omissions: Protects against claims related to defamation, invasion of privacy, or infringement of intellectual property rights.
Simplify Insurance Management
Managing a single annual policy simplifies administrative tasks, reduces paperwork, and ensures that all projects are automatically covered without the need to obtain new policies or certificates for each production.
Who Should Consider Annual Production Insurance?
- Production Companies with Frequent Projects: Companies that produce multiple films, commercials, music videos, or other media content throughout the year can benefit significantly from an annual policy.
- Independent Producers with Ongoing Work: Independent producers engaged in continuous production work may find it more efficient and cost-effective to have an annual policy rather than securing insurance for each project individually.
Where Is Annual Production Insurance Available?
Annual Production Insurance is available across the United States and is particularly prominent in states with active entertainment industries, such as:
- California: Home to Hollywood and a hub for film and television production.
- New York: A center for film, television, and theater productions.
- Georgia: Known for its growing film industry due to tax incentives.
- Louisiana: Offers a vibrant production scene with diverse filming locations.
How Does Annual Production Insurance Work?
Coverage Options
- General Liability: Protects against third-party claims of bodily injury or property damage during any production activities throughout the year.
- Equipment Coverage: Insures both owned and rented equipment against risks like theft, damage, or loss.
- Property Coverage: Covers sets, props, wardrobes, and other physical assets used in productions.
- Workers’ Compensation: Mandatory coverage providing medical and wage benefits to employees injured during production.
- Errors and Omissions (E&O): Protects against legal claims related to the content of your productions, such as copyright infringement or defamation.
- Automobile Liability: Covers vehicles used in productions, including non-owned and hired autos.
Application Process
- Evaluate Your Needs: Assess the scope of your productions for the upcoming year to determine the necessary coverages.
- Consult an Insurance Broker: Work with a broker experienced in entertainment insurance to customize a policy that fits your needs.
- Provide Detailed Information: Supply information about your company’s operations, past productions, risk management practices, and any planned high-risk activities.
- Review and Purchase Policy: Carefully review the policy terms, conditions, and exclusions before purchasing.
Policy Management
- Certificate Issuance: Easily obtain certificates of insurance for locations, equipment rentals, and other needs without applying for new policies each time.
- Policy Adjustments: Update your policy as needed throughout the year if there are significant changes in your production activities.
Benefits of Annual Production Insurance
Cost Efficiency
- Reduced Premiums: Annual policies can be more cost-effective than purchasing multiple short-term policies throughout the year.
- Bundled Coverages: Combining various coverages into one policy may result in discounts.
Administrative Ease
- Simplified Renewals: Only one renewal date to manage each year.
- Consistent Coverage: Ensures that all productions are covered without the risk of forgetting to insure a project.
Enhanced Risk Management
- Comprehensive Protection: Broad coverage reduces the risk of uninsured losses.
- Customized Policies: Tailor the policy to fit the unique risks associated with your productions.
Frequently Asked Questions
Is Annual Production Insurance Suitable for Small Production Companies?
Yes, even small production companies can benefit from an annual policy if they engage in multiple projects throughout the year. It can simplify insurance management and potentially save costs.
Can High-Risk Activities Be Covered Under Annual Policies?
Yes, activities such as stunts, pyrotechnics, and the use of animals can be included, but they must be disclosed to the insurer. These may affect the premium and require additional safety measures.
What If a New Project Arises Mid-Year?
With an annual policy, new projects are typically automatically covered, provided they fall within the scope of activities outlined in the policy. Always inform your insurer about significant changes to ensure adequate coverage.
Sources
- Producers Guild of America – Production Safety and Insurance
- California Department of Insurance – Entertainment Insurance
- The Hartford – Film Production Insurance
- Front Row Insurance Brokers – Annual Production Insurance
- Aon/Albert G. Ruben Insurance Services – Entertainment Insurance Solutions
- Hiscox – Media & Entertainment Insurance