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Creativity should not be bound by risks.

Film Insurance ensures that your creative pursuits are not bogged down by the vagaries of nature, human or otherwise.

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      Film Insurance

    Film Insurance


    Making a film is an exhilarating ride. From the spark of an idea to the final cut, it's a journey fueled by passion, creativity, and a dash of daring. But with every exhilarating moment comes a whirlwind of risks. There could be accidents on the film set, actors could fall sick - leading to lost days, worse still - actors could die; there could be shoot cancellation due to unavoidable circumstances, there could be damage to the film equipment, natural calamities could cause havoc, there could be damages to third parties. These are just some of the possible risks that could affect the production of a film. Readmore..

    Why Film Insurance?



    Sanjay Dutt was an A list star who was shooting for Subhash Ghai’s Khalnayak. And then one day, he was sentenced to jail. This experience led Subhash Ghai to insure his next film Taal to protect his production house against any such incidents that could hamper the fate of his film. Subhash Ghai thus paved the way for mass adoption of film insurance in India. Readmore..

    • Heaven's Gate (1980): A Cautionary Tale

      This ambitious Western epic, directed by Michael Cimino, spiraled into a production nightmare due to unchecked costs, on-set accidents, and a director's relentless pursuit of perfection. The film's budget ballooned from an estimated $7.5 million to over $44 million, and its release was met with scathing reviews and dismal box office returns. The financial fallout was catastrophic, leading to the bankruptcy of United Artists, the studio behind the film, and effectively ending Cimino's career. Heaven's Gate serves as a stark reminder of how quickly a film project can descend into financial ruin without adequate insurance protection.

    • Fire on Sets

      In 2020, a massive fire broke out on the set of a major Bollywood film, reducing elaborate sets worth an estimated ₹10 crores to ashes. Without insurance, this loss could have brought the production to a grinding halt. A couple of other high profile projects that got delayed or cost the producers significant money on account of Fire on the Sets include Manikarnika: The Queen of Jhansi (2019) & Vijay 61 (2017).

    • Illness of a Lead Actor

      In 2019, a leading actor in a South Indian film was diagnosed with a serious illness mid-production. The film had to be postponed for months, leading to significant financial losses due to halted production, rescheduled shooting, and disrupted schedules. Insurance could have mitigated these costs and ensured the project's completion. A couple of other high profile projects that got delayed or cost the producers significant money on account of illness of the lead actor include Kites (2010) & Paa (2009).

    • Equipment Damage

      During a location shoot in the Himalayas, a film crew's expensive camera equipment was damaged due to extreme weather conditions. The replacement cost ran into lakhs of rupees, a significant setback for the production, especially for independent filmmakers operating on tight budgets. A couple of other high profile projects that got delayed or cost the producers significant money on account of equipment damage include Dil Se.. (1998) & Lakshya (2004).

    Policy period & risk location for your film insurance Policy


    Just like a film's narrative unfolds within a specific timeframe and setting, your film insurance policy needs clear boundaries. The policy period should encompass the entire filmmaking journey, from the first day of pre-production to the final day of post-production. For a snappy ad film, this might be a day's work, but for a sprawling epic, coverage could stretch up to a year or more. Don't forget those crucial pre- and post-production phases – they're just as vital to insure as the filming itself. Readmore..

      Film Insurance

    What can be covered under a Film Insurance Policy?



    At Ethika, we believe in empowering filmmakers with the knowledge to make informed decisions about their insurance needs. We liaise with the Insurer to offer optimal coverages for a film. While a film insurance is a customized policy (i.e. you can ask for any coverage appropriate to the risk of production of the film), here's a breakdown of the most relevant and common coverages sought by most film makers, alongside ways to decide on the sum insured for each cover

    Personal Accident for Cast:

    This coverage provides financial compensation in the unfortunate event of accidental death of a cast member during production.

    • Determining the Sum Insured:
      Consider factors such as the actor's remuneration, their role in the production, and the potential financial impact their absence would have on the project.

    Personal Accident for Crew:

    This coverage protects your crew members in case of accidental death on set.

    • Determining the Sum Insured:
      Evaluate the number of crew members, their roles, and loss of income that could arise from an accident. Ensure you have your stunt men covered for accidental death and disability.

    Coverage for Disability & Medical extension under Personal Accident:

    It is a common practice to ignore the medical extension and disability cover for the cast and crew members. This cover, however, is equally if not more important. Imagine your stunt man suffering serious injury during a stunt and them being hospitalized with the bill running into Lakhs of rupees. Avoid such situations. Always opt for this extension.

    Equipment Insurance

    This coverage safeguards your valuable cameras, lights, sound equipment, and other essential tools from damage or theft.

    • Determining the Sum Insured:
      Assess the total replacement value of your equipment, considering the current market prices for new gear. Always insure your gear at the cost of new equipment to avoid under insurance.

    Props, Sets, and Wardrobe Insurance

    This coverage protects the visual elements of your production, including props, set designs, and wardrobe, from unforeseen events.

    • Determining the Sum Insured:
      ECalculate the cost of replacing or recreating these elements, factoring in materials, labor, and any unique or irreplaceable items.

    Film Tapes, Raw Stock, and Negatives Insurance

    This coverage protects your raw film stock, digital storage devices, or negatives, ensuring your critical content is safeguarded.

    • Determining the Sum Insured:
      Consider the cost of replacing the raw stock or the potential expenses involved in reshooting lost or damaged footage.

    Extra Expenses Cover

    This coverage protects you from additional costs incurred due to unforeseen events that interrupt or delay your shoot, such as bad weather, strikes or other such covered risks as listed above.

    • Determining the Sum Insured:
      Estimate the potential daily expenses of your production, including crew wages, location rentals, and equipment costs, and consider how many days of delay you want to be covered for.

    Money Insurance

    This coverage protects against the loss or theft of cash during production activities.

    • Determining the Sum Insured:
      Evaluate the maximum amount of cash you'll be handling or transporting at any given time during production.

    Public Liability/ Third Party Liability Insurance

    This coverage provides protection against legal liabilities arising from third-party injuries or property damage caused during production. The section compensates for any liability that may arise from a third party i.e. someone who is not a part of the production or the film.

    • Determining the Sum Insured:
      Assess the potential financial impact of any claims, considering legal fees, medical expenses, and property damage costs. Look for past precedents of similar claims.

    This coverage protects you from unexpected costs incurred during the post-production phase, such as Editing delays, Sound mixing and design issues, Visual effects complications, Music Licensing and Composition Changes among other things.

    • Determining the Sum Insured:
      To determine the appropriate sum insured for post-production expense coverage, consider factors such as the complexity of your post-production workflow, your post-production budget, potential risks and challenges. Ideally your post production budget should be a good determinant of your sum insured.

    Imagine this: you are midway through shooting your magnum opus, a historical epic with elaborate sets and a star-studded cast. Suddenly, disaster strikes. Your lead actor suffers a career-ending injury, or a fire engulfs your meticulously crafted sets. What happens to your film? What happens to the substantial investment poured into your dream project?

    This is where abandonment cover emerges as your shield against the unpredictable. It's the safeguard that protects your film project from unforeseen circumstances that force you to abandon production, ensuring that your creative vision doesn't become a financial casualty.

    The abandonment cover can generally trigger upon

    • The death, accidental injury, or critical illness of a named key member, such as your lead actor or director, making it impossible to continue filming
    • The physical loss or damage to your film stock, including negatives and tapes, due to fire, allied perils, acts of God, or natural calamities, provided you've adhered to the backup and storage requirements

    In the unfortunate event that you have to abandon your film, the Insurer will pay you for upto the sum insured for the abandonment section.

    What is generally not covered under a Film Insurance Policy


    What is excluded from your policy is more important than what is covered in it. This is because the fine print of the policy is generally read only at the time of a claim. So, here is a list of risks that a Film Insurance policy will generally not cover

    • Disappearance or unexplained loss or inventory shortage
    • Insects, vermin, inherent vice, latent defect, wear, tear, gradual deterioration, deterioration due to dampness or dryness of atmosphere, extremes or changes of temperature, shrinkage, evaporation, loss of weight, rust, contamination, or leakage of contents, unless caused by a risk not otherwise excluded
    • Mechanical breakdown and electrical unless caused by a risk not otherwise excluded
    • War, invasion, civil war, rebellion or revolution, Hazardous Activities, Hazardous Properties


      Film Insurance

    Deductible in your policy


    Think of a deductible as your contribution in the unlikely event of a claim. It's the portion you'll pay, while the insurance covers the rest. Deductibles can vary depending on the specific coverage – your camera equipment might have a different deductible than, say, a liability claim. The magic trick? Higher deductibles often lead to lower premiums. While tempting to opt for a high deductible and save on upfront costs, remember that a lower deductible means less out-of-pocket expense when you need it most. It's a balancing act, but we're here to help you find the sweet spot that aligns with your budget and risk tolerance. Readmore..


    Premiums for your film insurance policy


    Insurers tend to assess various factors before arriving at the premiums
    for film insurance. Some of these factors being

    Production Budget

    The higher the budget, the greater the potential financial loss. Big-budget blockbusters with elaborate sets and expensive equipment generally command higher premiums.

    Past Claims History

    A production company with a history of claims might face higher premiums, as they are perceived as higher risk.

    Cast and Crew

    The health and safety of the cast and crew are crucial. Insurers consider factors such as the age and health of key personnel, the number of stunt performers involved, the number of risky scenes and the overall safety record of the production team.

    Filming Locations

    Shooting in remote locations or areas prone to natural disasters increases the risk, thus influencing the premium. Similarly shooting outside India is riskier as compared to shooting within the country.


    FAQ's


    Film insurance typically covers a wide range of risks, including:

    • Personal accidents for cast and crew
    • Equipment damage or theft
    • Damage to props, sets, and wardrobe
    • Extra expenses due to delays or interruptions
    • Public liability
    • Errors and omissions