article image 7-5-22.jpgThe Insurance Movie Studios Need

July 5, 2022

There is nothing more exhilarating than the glitz and glamour of Hollywood. But its allure can distract from the threat of liabilities that can plague a production. Indeed, moviemaking is a business like any other, which entails liabilities that must be covered with public liability insurance. Failure to invest in the right insurance coverage can leave a studio vulnerable to costly injury, property damage, or even more serious claims. If you’re wondering why movie studios need insurance, consider the following four types of coverage that every production should have.

General Liability

General liability insurance is typically the bare minimum of coverage for any operation because it offers a base level of protection against liabilities such as injuries, property damage, and any other incident a production company may be responsible for. This type of insurance thus shields studios from the exposures that most commonly emerge on a movie set, making it an invaluable investment. People can get hurt on sets from stunts, faulty equipment, and other liabilities; a studio must have insurance to shield itself from these costs.

Workers’ Compensation

Another essential component of movie production studio insurance is workers’ compensation claims coverage. Risk factors such as stunts and equipment failure can easily cause injuries to your production’s talent or crew. Regardless of who is hurt, you must have insurance to help them access the medical care they may need. Workers’ compensation coverage is a necessity for any movie production (and every other kind of business).

Equipment Coverage

Though some filmmakers prefer the affordable aesthetic of film cameras, movie productions often require the use of state-of-the-art digital cameras and sound equipment — so of course, it’s essential to protect this gear from the potential damage expenses. To further complicate the matter, this equipment is often rented rather than owned, so liability for damages is an even more pressing issue. If an accident were to happen on-set and any equipment became damaged, it could halt production and cost the studio exorbitant replacement or repair costs.

Errors and Omissions

Errors and omission coverage — sometimes referred to as E&O — is a basic form of insurance for any production company, including movie studios. It protects the insured against any loss from a claim of professional liability. In other words, if a client claims that your studio did not fulfill its professional duties — or that you committed an intellectual property infringement — E&O coverage may be able to shield you from the costs of such a claim. ◼