Entertainment insurance provides coverage for the film industry and its producers. It is a large sub-section of the insurance and risk management world with its own unique exposures and coverages. The film industry in the United States is a big business generating $522 billion in revenue in 2013. According to Statista, that number is expected to rise to $632 billion in 2014. As revenue rises, so do film costs, with even “low budget” production costing several million dollars. These high costs bring high exposures! There are tight deadlines, a lot of moving parts and many people performing a variety of roles, both on the set and in the production offices. This translates to a lot of risk to the film itself and the production company. The question production company’s leadership must be able to answer is how they are mitigating those risks.
Some of the unique exposures a film production faces are delay in production, stunt/pyrotechnic risks, producer’s errors/omissions, safety and security on set, copyright infringement, breach of contract, etc. Production delays due to Harrison Ford breaking his leg causing at least a two week delay and resulting in unknown additional production expenses for the new Star Wars movie have been all over the news recently.
In addition to the above unique risks there are more traditional exposures production companies face that are covered by products such as Property, General Liability and Worker’s Compensation insurances. This blog is Part 1 of what will be a film production risk and insurance series and over the next few months we will begin discussing a variety of risks as well as possible solutions that could be used to mitigate a company’s risk.
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