Clients don’t usually think about what could go wrong during a video production shoot, but in reality, there are a lot of factors that could leave your (the client’s) company exposed to risk. Before hiring a video production company, make sure it has at least the following coverage: liability (at least $1,000,000), third party property damage (at least $1,000,000), and workers compensation (California requires a minimum of $1,000,000). If video production company isn’t covered and there is a problem on (or off) set, your company will more than likely be held liable for damages that result due to mistakes you had no control over.
Liability Coverage for Video Production Companies
If a passerby slips and falls on a wire left on the sidewalk during a shoot, the production company whose shoot it is would be held liable for their medical expenses. But if the production company doesn’t have insurance, that injured person could sue your (the client’s) company for damages. At a minimum, the production company should carry $1,000,000 of liability insurance.
Third Party Property Damage Coverage for Video Production Companies
If the video production company causes an electrical fire at a location they rented, most people would think that liability insurance would cover the damage done to the location. Unfortunately, this is not the case. Liability insurance only applies to damage done to anything outside of the shooting location. So if the fire burns down the location they’re renting, only their third party property damage coverage will cover that. If they don’t have coverage for third party property damage, the owner of the location could come after you (the client) for those damages.
Workers Compensation Insurance for Video Production Companies
If anyone on the production crew gets hurt on the job, they would be entitled to workers compensation from the production company. If the employee doesn’t carry their own workers compensation insurance and the production company doesn’t have it, the employee could go after the client for compensation.
For more information on how to determine if an individual is an employee or independent contractor, please visit one of the following sites:
http://www.edd.ca.gov/pdf_pub_ctr/de38.pdf or http://www.dir.ca.gov/dlse/FAQ_IndependentContractor.htm.
Video Production-Specific Insurance
Lastly, it’s very important that the video production company work with an insurance agency that specializes in production insurance. Some smaller production companies try to use their homeowners or renters insurance, and that coverage is not sufficient. Video production companies need video production insurance. A knowledgeable production insurance broker will have the tools and expertise necessary to keep them (and you) safe from being sued.
We want to thank Rich Gunn from TCP Insurance for helping us with this article. TCP specializes in insurance for the production industry. To learn more about video production insurance, visit TCP insurance here: http://www.tcpinsurance.com/.