The film and television industries grew significantly during the COVID-19 epidemic, owing to a boom in audience demand for home entertainment and streaming services. As a result, new streaming platforms and online content makers are rapidly increasing the market, opening new doors for film and television insurers.
According to Scott Carroll , SVP and programme director of Take1 Insurance, the pandemic posed huge hurdles to the film and television business, primarily due to cost.
“A normal shot is more expensive for production companies, partly due to COVID standards,” Carroll explained. “Over time, that will reduce, but the film business was struck so hard by COVID losses that many insurers imposed stricter COVID processes and safety regulations – at the expense of the production companies.
Many film and television insurers began to restrict or eliminate some coverages, particularly in the areas of civil authority and imminent peril, as well as tightening their underwriting and risk management standards, resulting in a large number of insured losses during the COVID period.
“The industry took a hit, but it survived,” Carroll said. “While others were entirely shut down during the pandemic, the movie business was one of the first to keep functioning yet the end consequence was greater expense and less insurance coverage.”
While other insurers have backed off, Carroll claims that Take1 Insurance has “stayed constant,” providing comprehensive coverage throughout the epidemic, particularly in the problematic areas of civil authority and imminent peril. The company has now launched a new Recorded Content Producers Program, which is targeted at documentary, industrial, commercial, and educational (DICE) film producers, as well as webisodes and YouTube video producers, with gross production budgets of up to $3 million.
The new programme, which is available in all 50 states on a direct or agency bill basis, includes all lines of the most important commercial insurance coverages, such as general liability, property (including business income/interruption), commercial auto and/or hire and non-owned auto, workers’ compensation, a suite of inland marine covers (for items unique to the filming industry, such as props, sets, wardrobe, and miscellaneous equipment), and a producer’s portfolio (often callede
Other specific protections for the production sector are available under the Recorded Content Producers Program, such as negative film and faulty stock coverage, which are equally as important to DICE producers as they are to film and TV producers. Civil authority, impending peril, and producer’s indemnity coverages are all included in the programme.
“I have a lot of faith in the DICE community.” Carroll told Insurance Business, “I think it’s an underserved segment of the industry for us at Take1, and while we already write a lot of it, there’s a lot more business out there.” “I feel that the demand for content creation is larger than it has ever been, thanks to the internet, YouTube, webisodes, and other types of streaming entertainment available today.” DICE producers’ needs, as well as the number of DICE producers available, are numerous and expanding. I see this as a hugely increasing industry that we want to try to tap into.”
Carriers did not drop out of the market during COVID because the DICE community is a bad risk, according to Carroll; on the contrary, they are a good risk.
“DICE, like film and television, remains a highly sought-after collection of production organisations,” he said. “However, I believe that many carriers out there had to take a serious look at some of the things they provided as a result of the COVID losses and the impact the pandemic had on the business, and they’ve pulled back as a result.” Some people perceive change as a negative but I see it as a very positive thing. I believe we can adapt to the industry and meet the needs of DICE producers in a timely manner.
“At Take1, we are very focused on this industry, and we consider ourselves to be very knowledgeable about it. We would love to share our knowledge with those who seek our assistance to ensure that the risks associated with a particular risk in the world of DICE are understood, discussed, and addressed.” We look forward to speaking with any retailer who is interested in a production company or believes they have a need for one.”