A key starting point when reviewing a programme of Insurance for a Post Production company is to ensure that they are insured on the right policy. It’s important not to just insure the business on an office policy as we have seen on occasion before as this usually won’t protect them against media-specific risks.
In order to protect client’s media during the editing process (whether on film or digital – audio, visual, or CGI) we developed a specialist cover, Post-Production Indemnity Insurance, which we include for no additional cost as part of our Annual Performance Policy.
Post-Production Indemnity will cover the accidental loss, destruction or damage to multimedia property for which you are responsible, during the Post-Production process. The amount paid out for the claim would be based on the additional expenditure incurred to complete the production, for example, if reshoots are required, the costs would be paid for rebooking the actors, crew and location.
In addition to Post-Production Indemnity, we would also recommend Post Production companies considering the following types of insurances:
Professional Indemnity Insurance
This cover is intended to protect professionals and their business in the event of a claim being made by a client or third party, suggesting they have suffered a loss as a result of:
- Professional Negligence, such as making an error in your work or providing bad advice
- Unintentional copyright infringement
- Unintentional breach of confidentiality
- Loss of documents or data
- Defamation or libel
We would recommend Professional Indemnity insurance to anybody providing a service in which you are liable to cause either a client or third party to suffer a financial loss. This can range from things such as advising clients a piece of work will be complete by a certain date and not achieving this or not obtaining the relevant licenses for film or media work.
Cyber Liability Insurance
Cyber Liability is often overlooked as a cover, but in the day of age where everything is being run by computers, the risk of a cyber-attack is increasing every day. As the film and media business is predominately computerised this puts the whole industry at risk.
If you or your business is targeted by a hacker and subsequently suffer a data breach, it will take money and potentially a large time frame to rectify this. As a result, your business might not be able to trade, leaving you with a potential loss of revenue. As the loss of revenue stems from a cyber-attack it will not be picked up by a typical business interruption policy. The attack would also leave you with regulatory fines and worst of all, a damaged reputation.
Cyber insurance is not in place to prevent a cyber-attack as this is not possible. Rather, it will help you deal with the aftermath and get your business up and running again in the quickest time possible. Although we can’t prevent the attack, the policy and underwriters can provide you with risk management features/tips which may help with the security of the business.
Public Liability Insurance
Public Liability Insurance provides cover for you against your legal liability to pay compensation and the costs and expenses for the following:
- accidental third party injury
- accidental damage to third party property
- accidental obstruction, trespass, nuisance or interference with any right of way, air, light or water arising in connection with your business
Although Public Liability cover isn’t a legal requirement, we would always recommend having it in place to limit your exposure to potentially having a claim made against you and finding you are the one paying out.
Employers’ Liability Insurance
Employers’ Liability Insurance provides cover for compensation costs if an employee is injured or becomes ill as a result of working for you.
Even if you don’t have any staff employed on the payroll, you are still be responsible for the health and safety of self-employed contractors you hire, temporary staff, apprentices and volunteers working for you.
Employers’ Liability Insurance is a legal requirement in the United Kingdom, and if you are found not to have adequate cover in place then you can be fined £2,500 every day you are not properly insured.
Own Technical Equipment / Own Kit Insurance
Own Technical Equipment Insurance will indemnify you for the repair and/or replacement of your equipment that you have purchased, on a replacement (new for old) basis. Within this, we can also include computers and mobiles phones on a Worldwide basis.
In addition to risks such as theft, our Annual Performance Policy would also extend to include accidental loss and accidental damage.
Equipment Breakdown Extension
Equipment Breakdown, also known as Mechanical Breakdown or Electrical Breakdown, will cover the cost to replace or repair technical equipment should a loss be suffered due to internal breakdown or operator error.
Hired in Equipment / Rented Kit Insurance
Hired in Equipment (or Plant Hire) Insurance will indemnify you for the repair or replacement of equipment that is hired, leased or borrowed to you.
When entering a Hire Agreement with an Equipment Hire Company or Kit House, they will make you responsible for the equipment from the date you pick the kit up until the date you return it to them, so it is important to ensure you are adequately covered should the equipment be damaged, lost or stolen while in your possession.
Business Interruption Insurance
Business Interruption Insurance, also known as loss of profits insurance, will provide cover you for loss of income should there be material damage to your property which prevents you from continuing to trade for a period of time.
For example, if a fire were to break out at your premises, in addition to a claim for material damage to the building itself and any equipment, you may also suffer a loss of income and incur additional costs. This might be from renting an alternative location to work from until your premises has been repaired, as well as covering revenue or profit you would have earned had the fire not occurred.
We would strongly recommend Business Interruption Insurance to all clients, and in particular those that rely on the premises they work from such as Post-Production Companies, Kit Hire Companies, Studios and Film Schools.