Ever wonder how those Hollywood movies are insured? I was too for a while until the opportunity presented itself.
My client had a collection of Mustangs – Ford Mustangs. They ranged in age from 1965 to 2014. The car that he and his spouse drove every day was a Ford Mustang. Their backup car was a Ford Mustang. You get the picture.
I had placed the every day and back up vehicle onto a standard auto policy. The remainder I had placed onto an agreed value policy. My insured had very little claims, paid on time, and hardly ever called. At renewal time, we called for retention.
He had forwarded to me different photo shoots of his vehicles, magazine articles, and layouts. Not only did they win awards at car shows, but they also provided income via marketing opportunity.
Then, while answering the renewal questions, he mentioned that his backup car was a ‘hero car’. He explained what it meant and that his car had been in two films so far. Since he had signed up for a third, he wanted to make sure he was still covered.
Since he had signed up for a third, he wanted to make sure he was still covered.
First, just get rid of that ‘Dukes of Hazzard’ jumping the local pond vision you have in your head. A movie production policy is a basic general liability policy with the production, employer’s liability, automobile liability, large watercraft liability, and/or aircraft liability included. A production cannot move forward without a policy in place.
A production cannot move forward without a policy in place. From my experience, these policies are written through agencies like Film Emporium in New York. In this instance, my insured was an additional insured on the policy since they were covering his car for liability only. Also, since many productions may take place overseas, the locations, studios, and landlords are listed as additional insureds as well.
There is one caveat, these policies will exclude coverage for damage to property that should be covered under insurance specifically designed for the property, such as equipment floaters and bailee insurance.
The carrier ended up decided to remove the vehicle from the policy since the physical damage exposure was too great. In other words, no telling what the ‘hero car’ has to do to save the day.
What limits are on these types of policies since they have so much risk? According to an article in Property Casualty 360, Allianz Global Risks US provided a $25 million policy for the production of American Made starring Tom Cruise. You can read about the recent lawsuit here.
You can imagine the amount of liability a television show or a game show might have. Have any media/movie insurance experience or insurance story tell us about it below.
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