Q: How does one go about getting film production insurance and what are the costs to consider when budgeting for an indie film?
Ferdinand via twitter @filmmethod
There are several places to go for film production insurance. The thing you have to make sure you understand is that production insurance is a very specific type of insurance and most insurance companies don’t carry it. So, if you are filming something outside of a state that is used to having films there, they probably won’t have it. You can get it from a state outside of the one you are shooting in and it will cover it.
I recommend talking to filmmakers who have gotten insurance before and see who they like and contact that agency. Don’t be afraid to ask for a quote during the budgeting process, in fact, that is the best way to do it. I would get a quote while budgeting from a few different companies, for budgeting purposes, pick the highest quote and then add a little more money to that line item just to make sure you can cover yourself incase the prices change between the time of budgeting and filming. Also, production insurance is not the same as work comp so be aware of that. If you go through a payroll company, they will usually have work comp that you can get through them for a percentage.
You are going to need (at minimum) a policy that covers up to a million dollars on equipment and locations. Most equipment rental companies will expect that and so will most locations. You also need to make sure you understand that most insurance claims have a deductable per claim. For example, if you break a light and you damage someone’s property at the same time, that’s two separate claims. Therefore, the deductable will need to be paid twice. So, budget in there for a few claims just in case. Also, some of these policies don’t cover auto. So, if you need to rent a grip truck, be aware of this.
When you do find the insurance company with the best policy for your shoot you should be prepared to show them your script and fill out a form that may seem a little strange to you. They do this so that you can’t lie when applying for insurance. For example, if you have animals, guns, stunts (even if it’s just one person falling down), etc., that will change your policy quote. Don’t lie on your application just to save a few bucks because it’s not worth it. Because if they find out you did have a dog on set and you didn’t tell them, they can legally deny your claim because it voids your policy.
Oh and don’t forget about E&O (Errors and Omissions) insurance while you’re budgeting. This is an insurance that you will need to get once the film is completed. You can get quotes on that in the budgeting process as well.
Don’t be afraid of the insurance process, it is there to protect you. Your best bet is to get the quotes early so you have budgeted enough to cover what you need.