How does Employer's Liability coverage work and what does Alec Baldwin have to do with it?
Hello!
We've arrived at Civil Liability Month here at #MondayBlog!
This November is going to be a hot one, and we are excited to share with you our knowledge of this very important coverage, as well as clear up any doubts and put an end to the confusion.
Civil liability coverage can be a bit complex and even boring to understand, because it involves many legal interpretations of damages, coupled with the famous general conditions of insurance. So sometimes we feel that the policyholder gets a bit lost trying to understand how and when the coverage is applicable.
Our first post of the month will be about Employer's liability, and we'll use the case of Alec Baldwin and the tragic accident that resulted in his death on the film set of the feature film Rust as an example to explain this coverage.
What is Employer's Liability coverage?
The employer's liability in terms of insurance works like this, let's say you're filming and Paulo, one of your employees, is accidentally injured on the film set by an act of negligence on your part, like for example, there were no properly established security protocols. Paulo climbed a ladder to fix the wiring for the film set, was shocked, fell from a height of 7 meters and as a result of this sudden and unexpected accident, he was permanently disabled.
This is when the Employer's Liability coverage arrives to help you by covering the amounts you must legally pay for this damage caused to Paulo.
But then you ask me, but wouldn't the Personal Accident coverage be triggered? Yes, it would be. In the first instance, the PA coverage is triggered and indemnified, but nothing prevents Paulo and/or his family from suing your production and at this time, the Employer's liability is the coverage you need to have in your insurance policy.
The great advantage of having the PA at these times is that in front of the judge it demonstrates good will and can decrease the final value determined by him in his sentence.
In summary, the coverage works for the death and/or permanent disability of production employees, during the term of the insurance, provided that what caused the death or disability was due to sudden and unexpected accidents. And, of course, the accident must be the insured's fault, per unintentional negligence or lack of attention.
This coverage is valid both for employees of your producer, with employment contract and/or CLT, as for production agents, during the term of your policy. And she can also cover her employee during their commute to and from the movie set. This last condition varies from insurer to insurer.
What happened to Alec Baldwin?
If you've been living under a rock for the last week, or if you've been somewhere meditating, you might still not be aware of the sad case that happened on the film set of the movie Rust, which Alec Baldwin shot toward the camera to do a “take”, and to his shock and the entire production, he hit and killed director of photography Halyna Hutchins, in addition to injuring director Joel Souza.
We would like to make it clear that we are not going to speak from the criminal point of view of this story.
We, at Prospecto, will focus on the insurance side of the Employer's liability and on how both the insurer and the reinsurers can behave in this case.
From what can be seen in the media, it appears that the whole situation is being regarded as accidental, and it does not appear that the county of New Mexico - where the filming is taking place - will file a criminal action against those involved in this tragedy.
One thing, however, is clear, actor Alec Baldwin is not to be considered guilty of Halyna's death or Joel's wound. Producer Alec Baldwin, on the other hand, is civilly responsible for this.
Yeah, Alec Baldwin is one of the six producers responsible for the $7 million film. In addition to Alec, we have producers Ryan Smith, Nathan Klingher, Ryan Winterstern, Matt DelPiano and Anjul Nigam, who together have over 35 years of experience in this market.
It's very difficult to understand how a super-cast of producers overlook something as important as the necessary care with weapons on film sets, but that's exactly what happened.
In addition to the above-mentioned producers, other production people can potentially respond civilly for the accidental shots, based on the day sheet obtained by "The Associated Press", which mentions four executive producers, a line producer and a co-producer, and assistant director Dave Hall and gunsmith Hannah Gutierrez.
How is Employer's liability coverage triggered in this case?
There is no great mystery about the question of how coverage would be applied here, and it only takes effect upon the death of the director of photography. The accidental shooting of director Joel in his shoulder, so far, does not constitute a permanent disability, being within the parameter of personal accident coverage.
But back to Halyna's accidental death.
Was it accidental? Yes. (as far as we know)
Was there a death of a production employee? Yes.
Is the producer to blame for the accident? Yes, because the responsibility for providing security during filming rests with Rust Movie Productions.
Then the Employer's libility coverage can be triggered, and the claim process can be started. We find it very difficult not to have started already.
How would the regulation of this case be?
First of all, we're talking about Civil Liability here, which is coverage actionable only when there's a lawsuit in action. In other words, in this case, the director's family must sue the producer for her death on the film set.
Thereafter, the insurer holding the insurance policy for this film will certainly follow the police investigations closely, but will also carry out its own fact-checks.
An experienced regulator will be dispatched to the set and will speak to everyone present on the day of the accident. This regulator will try to reconstruct the day's work and verify how the weapon that was supposed to be cold, ie, bullet-free, was loaded with a bullet.
After all verifications, a claim report will be sent to the insurer and there will be a final verification of the possible coverage being indemnifiable or not.
The insurance company can try to make a deal with the family, in order to minimize the damage, and if it is not successful, it must wait for the judge's decision on one of the most difficult legal questions. After all, how much is a life worth?
In case of possible negligence?
And that's where this whole subject gets even more curious, as apparently there is evidence that a person on Rust's team had made a complaint in an exchange of messages with one of the producers, complaining about the lack of safety in the use of firearms during the footage.
The text from the team member to the production manager said: “We've already had three accidental discharges. This is very unsafe.” According to The Los Angeles Times, two unnamed staff members reported that five days before the accident, Baldwin's double had used a gun, which contained two bullets inside, as he had been told there was no ammunition. on the revolver.
If it is proven that the production was negligent with the weapons during filming, the insurer may not cover the financial loss arising from the lawsuit, as negligence is clearly excluded in any insurance policy.
We will see how the insurer will behave, and what decision it will take, as we find it very difficult not to have a lawsuit in the very near future.
So, dear reader, what did you think of our first post on Civil Liability?
We're sure you've learned a lot today, but if you have any questions, don't hesitate to contact us.
We at Prospecto will be delighted to help you understand this coverage and all other Civil Liability coverage applicable to the Brazilian insurance market!
Next week there will be more Civil Liability here at #MondayBlog.
We are waiting for you!
Have a great week, lovers!
Prospecto Seguros
LEGAL NOTICE
This post was created through research on sites, under the "Fair Use" copyright law, as the research materials fall under public knowledge.
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