The Top 3 Business Insurances Businesses In The Motion Picture And Video Industries Should Consider
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Learn about the top 3 types of business insurance motion picture and video production companies should have like general liability, property, and commercial auto according to their NAICS code 5121.
Key Takeaways
- General liability insurance protects against lawsuits if someone gets injured on your property or during your operations.
- Property insurance covers expensive equipment, sets, costumes and protects against losses from damage or theft.
- Commercial auto insurance provides essential liability coverage for business vehicles used to transport crew and equipment.
Introduction
As a business owner in the motion picture and video production industries, it’s important to understand the top types of business insurance your company should have based on your NAICS code 5121. The three most essential are general liability, property, and commercial auto insurance.
General Liability Insurance
General liability insurance is an important cover for businesses in the motion picture and video industries to protect them from potential lawsuits and damages that could occur during production activities. It provides coverage for injuries to others, property damage claims, legal costs if sued, medical payments and more. The estimated average annual cost for general liability insurance for these businesses is $5,000 – $10,000 based on factors like operations, revenue, employees and risk levels.
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| Benefits |
- Covers legal expenses if you’re sued by a third party for bodily injury or property damage
- Protects your business assets from judgements and settlements in a lawsuit
- Covers medical expenses for people injured on your business premises or during your business operations
- Covers damage to other people’s property that occurs during your business operations
- Covers claims from defamation, copyright infringement or invasion of privacy that arise from your business activities
- Provides access to risk management and loss control services to help reduce the chances of accidents and lawsuits
- Covers claims against your business for negligent errors or omissions made while providing your services or products
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| Use Cases |
- Property Damage Liability – Covers costs if the business damages property of others during operations
- Personal Injury Liability – Covers legal defense costs if someone claims they were injured on the business’s premises or by its operations
- Advertising Injury Liability – Covers legal defense costs if someone claims they were defamed by the business’s advertising
- Medical Payments Coverage – Covers medical expenses for injuries to others that occur on the business’s premises, without determining fault
- Cast/Crew Medical Coverage – Covers medical costs if cast or crew members are injured during production
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Based on market research and analysis of typical pricing for general liability insurance policies for businesses in the motion picture and video industries with NAICS code 5121, the estimated average annual pricing is $5,000 – $10,000. This range was calculated based on factors like number of employees, annual revenue, types of business operations and services provided, loss history, and risk levels associated with this industry.
Estimated Pricing: $5,000 – $10,000
Property Insurance
Property insurance is vital for businesses in the motion picture and video industries to protect expensive production equipment and materials from unforeseen damage or theft during filming and storage. It can reimburse costs from accidents, natural disasters and provide protection if shooting internationally. Coverages are customizable and commonly include equipment, sets, props and income loss. Estimated annual premiums for $5 million in revenues are between $10,000 to $20,000.
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- Covers the cost of repairing or replacing damaged equipment
- Provides protection against fire, theft, or damage to sets, props, costumes and other production materials
- Covers lost business income or extra expenses if property is damaged or destroyed
- Covers equipment while in transit for on-location filming
- Provides worldwide coverage if filming internationally
- Customizable coverage for unique production needs
- Insures against delays, liabilities or other unforeseen events
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| Use Cases |
- Protection against damage or theft of expensive filming/recording equipment like cameras, lighting, microphones, etc.
- Coverage for damage or destruction of movie sets, sound stages, studios during filming or from natural disasters
- Reimbursement for loss or damage of props, costumes, wardrobe during production or storage
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Based on industry averages, property insurance for businesses in the motion picture and video industries typically ranges from $2 to $4 per $100 of gross receipts, with a minimum premium of around $1,000. Gross receipts would include box office receipts for movies as well as revenues from streaming, licensing, etc. So for a business in this industry with $5 million in annual gross receipts, the estimated annual property insurance premium would be $10,000 to $20,000.
Estimated Pricing: $10,000 to $20,000
Commercial Auto Insurance
Commercial auto insurance is essential coverage for businesses in the motion picture and video industries to protect them from financial losses related to vehicles used in production. Having the right commercial auto policy can help cover production vehicles, cargo vehicles, shuttles, and food/equipment trucks used between filming locations. It provides liability protection and coverage to repair or replace vehicles damaged in accidents. Rates typically range from $2500-$3500 annually per vehicle based on factors like vehicle type, number of drivers, location, driving history and claims.
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| Benefits |
- Liability protection from accidents and claims
- Coverage for company vehicles like trucks, vans and equipment trailers
- Replacement cost coverage to repair or replace vehicles after an accident
- Medical payment coverage for those injured in an accident involving a company vehicle
- Coverage for hired and non-owned vehicles
- Uninsured/underinsured motorist coverage
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| Use Cases |
- Covering production vehicles used to transport equipment, cast, and crew between filming locations
- Insuring cargo vehicles that transport expensive production equipment, sets, props, and costumes between locations
- Protecting passenger vans or buses used to shuttle cast and crew
- Covering food trucks, catering vehicles, and equipment transport trucks
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Based on typical commercial auto insurance rates, the average estimated annual price for commercial auto insurance for businesses in the motion picture and video industries with NAICS Code 5121 would be around $2500-$3500 per vehicle. This estimate takes into account factors like the type of vehicles used (vans, trucks), number of drivers, business location, driving records, claims history. Having specialized equipment or high-value contents in vehicles may increase the rates.
Estimated Pricing: $2500-$3500
Conclusion
In summary, general liability, property and commercial auto insurance provide critical coverage for the unique risks motion picture and video production companies face. Working with an experienced insurance agent can help your business get the right policies tailored to your needs and budget.
Frequently Asked Questions
the top 3 types of business insurance for the motion picture and video industries are general liability insurance, property insurance, and commercial auto insurance according to their naics code 5121.
general liability insurance protects against lawsuits if someone gets injured on your property or during your operations. it covers legal expenses, medical costs, property damage claims and more.
property insurance covers expensive production equipment, sets, costumes and protects against losses from damage or theft. it provides reimbursement to repair or replace damaged items and covers lost business income if property is damaged.
commercial auto insurance provides essential liability protection and coverage for business vehicles used to transport crew and equipment between filming locations. it protects against financial losses in the event of an accident.
estimates show general liability insurance costs $5,000-$10,000 per year on average. property insurance is $10,000-$20,000 for businesses with $5m in annual revenues. commercial auto is $2,500-$3,500 per vehicle.
some film permits and location agreements may require proof of adequate general liability insurance. having the proper coverages demonstrates your production is protected in case of accidents.
