Audiovisual insurance and project budget. Do you know the relation between them?
Hello!
Every Monday we have #MondayBlog here at Prospecto, and our theme for today is the coverage of miscellaneous risks, specifically those directly related to the budget value of a production.
And before you run away, let me say that understanding these guarantees is essential when taking out insurance for your audiovisual production.
Have you ever heard the expression “make it or break it”? If you don't know how to hire these coverages, you can literally break or at least hurt your producer's financial life.
These guarantees are generally contracted as a relative risk, and in layman's terms this means that, at the time of the indemnity, there will be a penalty applied in the form of apportionment of the loss if the budget informed is not the actual value of the cost of its production.
And this penalty is due to the fact that, in addition to the deductible being applied, you will also proportionally participate with the Insurer in the total amount of the loss.
If you have no idea how to calculate the cost of your production, don't worry, we at Prospecto know exactly what should or should not be included in this value and we are at your disposal.
And now, without further ado, let's get to know these powerful covers.
Support
The support is the place where the sound, image and/or footage is stored, that is, it would be the negative, DVD, HD, memory card, among other options.
It's where what you've created is saved, then edited and presented to the public.
This support coverage comes to assist the production in case, after a job, it is detected that the support has been damaged, being necessary, for example, to film the work again.
The cost of this remake is covered by insurance. Interesting, isn't it?
And that's why knowing how much it will cost to shoot again, that is, knowing your budget is critical.
No-Show
This coverage is phenomenal, as it covers the costs related to the non-appearance of someone essential to the production, whether that person is an actor, actress or director, etc.,
related to unexpected problems with these people. When you think about hiring the No-Show coverage, the golden rule is to think: “Which person, in case of absence, has the power to cancel, or paralyze my production?”. The person or group of people that pop into your head should be included in this insurance.
Oh, and this coverage is extended to problems with the first degree family of the person named as essencial. In other words, if something happens to the father of the main actress, she will certainly not be able to shoot, right? If you have your audiovisual insurance fully covered, this coverage will be there to help you with shooting downtime costs until the actress can go back to filming.
Cancelation
We believe that there is no time of greater stress than when a production has to be postponed or canceled. We are not just talking about financial costs, but dreams being frustrated, so it is necessary to at least have the comfort of being well supported, in case a difficult situation like this happens. In the event of a production cancellation, we at Prospecto will join forces with you and the insurance company, to try to help you, and find solutions while production is postponed.
What if your footage is a live stream, like the Olympics, for example? And in the middle of the broadcast, there is a drop in the signal, and the audience is left without watching 10 minutes of the opening ceremony? Or does the signal cut off altogether? What to do? Cancellation coverage also covers this type of situation.
It is a fact that no one wants a cancellation, but if it is unavoidable, at least the financial loss will be compensated with regard to production costs.
So consider this coverage in your next contract.
Extra Costs
The name of this coverage is almost self-explanatory, as it refers to the coverage of your financial losses, related to the cost of production, that may occur due to cancellation, interruption or postponement of filming due to damage or destruction of the filming location.
In other words, imagine a scenario where your movie is all shot in one location and in the middle of production, the location catches fire, for example. This coverage is used to cover your extra expenses when renting a new space, similar to the previous one, so that you can continue with your project.
There is also the possibility of purchasing an extension on this coverage for property damage, for example, let's say that all portable generators, camera, sound and image equipment were in perfect condition before the start of work, but then a short circuit occurs, or an electrical damage to these tested equipment, it is at this time that the extension takes action to cover the calculated losses arising from an external or internal cause, by charging an additional premium.
Inclement Weather
This coverage is easily found and sold in the Event Insurance product, but in the case of audiovisual productions, it is practically impossible, or extremely rare, to be able to contract this coverage in the national territory. However, we think it's important for you to know that this coverage exists.
And it basically serves to cover the loss suffered by the insured due to the cancellation or postponement of the job due to adverse weather conditions.
You are filming in São Paulo, for example, and a torrential rain falls and floods the place where the filming is taking place, this coverage would be triggered in this situation.
However, this coverage is more common in international insurance and it is necessary to make a special request to Brazilian insurers, who will then analyze and agree or not to cover this risk within the audiovisual insurance.
All of the above coverages are like pieces of a puzzle that come together to give you complete protection from your losses directly related to your production cost budget.
Importantly, there is no expected profit coverage, but it is possible to include coverage for the producer's fee. And that all these coverages can only be activated if the damages occur after the start of the work and after the policy has entered into force.
Did you already know these coverages, their forms of application and advantages?
If you have any questions, please don't hesitate to contact us. We are here exactly to help you hire the best coverage for your project.
See you next Monday.
An excellent week, lovers!
Prospecto Seguros
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Audiovisual Production
Equipments
Errors and Omissions
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Events