EXPLANATION OF PRODUCTION INSURANCE COVERAGES

Cast Insurance in an amount equal to at least 100% of the amount of the budget to cover, among other things, extra expense necessary to complete the principal photography of the Picture due to the death, injury, sickness of any principal performer or the director.

Negative Insurance in an amount equal to at least 100% of the amount of the budget to cover, among other things, all risks of direct physical loss, damage or destruction of raw film stock, exposed film, whether developed or undeveloped, and sound tracks.

Faulty Stock, Camera and Processing Insurance to cover, among other things, loss, damage or destruction of raw Picture stock, exposed film, whether developed or undeveloped, and sound tracks, caused by or resulting from fogging or the use of faulty sound equipment, faulty developing, faulty editing and faulty processing.

Props, Sets and Wardrobe Insurance to cover, among other things, all risks of direct physical loss, damage or destruction of props, sets and wardrobe during production of the Picture.

Extra Expense Insurance to cover, among other things, any extra expense necessary to complete the principal photography of the Picture due to the damage or destruction of property, including, without limitation, facilities, props, sets or equipment used in connection with the Picture, including loss due to faulty generators. Note, Extra Expense Insurance will only respond if you have coverage for the loss relating to Extra Expense. For example if you claiming a extra expense for miscellaneous equipment you must have insurance for  miscellaneous equipment

Miscellaneous Equipment Insurance to cover, among other things, all risks of direct physical loss, damage or destruction to cameras, camera equipment, sound, lighting (including breakage of globes) and grip equipment, and mobile equipment, vans or studio location units or other such similar units owned by, or rented to, the producer of the Picture.

Property Damage Liability Insurance covering, among other things, the damage to or destruction of the property of others, including, without limitation, the loss of use of that property while such property is in the care, custody or control of the producer of the Picture.



Comprehensive Liability Insurance covering the Producer of the Picture against, among other things, all claims for bodily injury, personal injury or property damage which arise in connection with the Picture, with minimum liability limits of $1,000,000.

Workers’ Compensation Insurance as required by the various jurisdictions in which any services are rendered in connection with the Picture covering, among other things, all temporary or permanent cast or production crew members.

Any insurance coverage required by applicable collective bargaining agreements. Coverage is to be blanket and the limits of liability must be sufficient so as to meet all requirements of such collective bargaining agreements.

Broad Form Monies and Securities Insurance covering, among other things, the loss of money or other securities through disappearance, destruction or wrongful abstraction at any location site any place in the world in an amount equal to the greater of $25,000 or the amount of the highest estimated weekly cash payroll for the Picture.

Essential Element Insurance covering, among other things, all production costs (including story costs, interest and financing charges) spent or incurred prior to the abandonment of the Picture in the event that any cast member or other personnel deemed “key” or essential shall require replacement.

Errors and Omissions Insurance covering, among other things, the legal liability and defence of the producer of the Picture against lawsuits alleging the unauthorized use of title, format, ideas, characters, plots, plagiarism, unfair competition and breach of implied or quasi-contract. Such insurance shall also protect against alleged libel, slander, defamation of character and invasion of privacy. The Errors and Omissions Insurance shall be in the minimum amount of $1,000,000 per occurrence and $3,000,000 in the aggregate within a deductible of $10,000 and a period of coverage not less than two years from the date of commencement of production of the Picture (plus such longer periods as coverage is required to be in effect pursuant to contracts for the exhibition or distribution of the Picture.