The Top Business Insurances Essential for Video and Film Production Companies with NAICS Code 512199

UncategorizedReading Time: 11 minutes

This guide covers the most important types of business insurance video and film production businesses should consider like general liability, commercial property, commercial auto, equipment, D&O and more.

Key Takeaways

  • General liability insurance protects against third party claims and lawsuits.
  • Commercial property insurance covers costs to repair or replace property after covered losses like fire or theft.
  • Commercial auto insurance protects vehicles used for filming transport.
  • Equipment insurance covers expensive cameras, lights and audio gear from damage and theft.
  • D&O insurance protects business owners from personal lawsuits.
  • Cyber liability insurance covers costs of data breaches and cyber attacks.
  • Workers compensation covers medical costs and lost wages from on-set injuries.
  • Business interruption insurance protects cash flow if filming is interrupted.
  • Employment practices liability covers lawsuits from employees.

Introduction

Business insurance is crucial for video and film production companies to manage risks inherent in their operations. Whether filming on location, using vehicles and equipment or handling private customer information, insurance protects the financial health of these creative businesses. This guide outlines the top types of coverage video and film production companies with NAICS code 512199 should consider.

General Liability Insurance

General liability insurance provides protection for motion picture and video businesses against third party claims and lawsuits that could result from their operations and activities. It covers costs of legal defense and potential damages if they are found legally responsible. There are many risks involved in filming, producing, and distributing content that liability insurance helps protect against, such as injuries on set, accidents with equipment, and legal issues regarding the content itself like copyright infringement. It is especially important for businesses in this industry due to the nature of their work involving locations, machinery, and intellectual property.

Category List
Benefits
  • Protects your business from third-party lawsuits if a customer/client is injured on your premises or by using your product or service
  • Covers legal fees and expenses to defend your business against frivolous lawsuits
  • Reimburses medical expenses for individuals who are injured as a result of your operations
  • Covers property damage claims if your business damages someone else’s property during operations
  • Provides coverage for errors and omissions if your business provides professional services like filming or editing
  • Protects employees with coverage for injuries that happen on the job
  • Covers claims from media losses like libel, slander, copyright infringement or invasion of privacy that could occur during filming, editing or distribution
  • Protects the financial well-being of the business by covering costly lawsuits and ensuring operations can continue.
Use Cases
  • Protection from lawsuits from injuries on filming locations and sets
  • Protection from lawsuits due to accidents or injuries involving equipment and vehicles used in filming
  • Protection from lawsuits involving intellectual property infringement like copyright, trademark or patent issues with content
  • Protection from lawsuits involving distribution, screening or publishing of offensive, inaccurate or misleading content

Based on industry data and averages, general liability insurance for businesses in the other motion picture and video industries with NAICS code 512199 would be estimated around $2,000 – $3,000 per year. This pricing is calculated based on factors such as annual revenues, number of employees, types of business activities/operations, past claims experience, and safety measures/processes in place. The average revenue for businesses in this NAICS code is around $500,000 per year with 5 employees on average.

Estimated Pricing: $2,000 – $3,000

Commercial Property Insurance

Commercial property insurance provides important coverage and protection for businesses in the film/video production industries. With expensive cameras, lighting, and audio equipment that is often used both in studios and on location, commercial property insurance helps protect against financial losses from damage or theft of business property and equipment. It also covers other costs like business interruption if the business cannot operate due to a covered loss. The estimated average annual commercial property insurance premium for businesses in the Other Motion Picture and Video Industries with NAICS Code 512199 is around $3,000 – $5,000, according to typical pricing factors such as location, property value, coverage limits, deductibles, past claims history, and risk level.

Category List
Benefits
  • Protects equipment, tools, machinery, musical instruments, cameras, lights, and other business property against theft, fire, storm damage and other losses
  • Covers property damage or destruction from disasters like fire, flooding or storms
  • Covers costs to repair or replace property after a covered loss
  • Covers liability if a customer or guest is injured on your property due to negligence
  • Provides access to restoration services to help minimize property damage and downtime after a loss
  • Covers loss of business income and extra expenses if operations are temporarily interrupted by a covered property loss
  • Covers equipment while on location or in transit for filming or events
  • Covers debris removal and demolition costs after an insured loss to help with cleanup and repairs
Use Cases
  • Protection against loss or damage to business property and equipment from fire, lightning, explosions, windstorms, riots, vandalism, etc.
  • Coverage for equipment used for film/video production such as cameras, tripods, lighting and audio equipment which can be expensive to replace if damaged
  • Coverage for buildings and office property such as computers, furniture, fixtures etc.
  • Business interruption coverage to continue paying operating expenses if the business cannot operate due to a covered loss

Based on typical commercial property insurance pricing factors such as location, property value, coverage limits, deductibles, past claims history, and risk level, the estimated average annual commercial property insurance premium for businesses in the Other Motion Picture and Video Industries with NAICS Code 512199 is around $3,000 – $5,000. This pricing range was derived from insurance rate tables and industry data for other businesses with similar risk profiles.

Estimated Pricing: $3,000 – $5,000

Commercial Auto Insurance

Commercial auto insurance provides essential liability and physical damage protection for businesses in the motion picture and video industries that use vehicles for various production and transportation purposes. Commercial auto policies help protect these creative businesses from financial losses in the event of accidents while crews and equipment are being transported for filming activities.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for medical bills and vehicle repairs for those injured
  • Reimbursement for damaged property
  • Replacement or repair of your vehicle if it’s totaled or damaged
  • Coverage for hired and non-owned vehicles
  • Coverage for equipment or goods being transported
  • Protection while filming on location
Use Cases
  • Coverage for company vehicles used to transport equipment and staff between filming locations
  • Liability protection in case of accidents while vehicles are being used for business purposes
  • Physical damage coverage for company vehicles in case of accidents, theft or other perils

Based on sample data from insurance providers, the average estimated annual price for commercial auto insurance for businesses in the Other Motion Picture and Video Industries (NAICS 512199) is around $2,000 – $3,000 per vehicle. This pricing takes into account factors like number of vehicles, driver qualifications, safety record, and level of liability coverage selected. With fleets of vehicles used for outdoor filming, proper coverage is important to protect the business from accidents that may occur on location.

Estimated Pricing: $2,000 – $3,000

Equipment Insurance

Equipment is crucial for businesses in motion picture and video industries to carry out filming and production work. However, this gear can be very expensive to replace if damaged or stolen. Equipment insurance provides protection for these costly assets that are vital to business operations.

Insuring equipment allows companies in NAICS 512199 industries to focus on their creative work without worrying about the financial risks of replacing equipment should anything unexpected happen to it. Coverage helps limit risks for motion picture and video businesses that rely so heavily on specialized filming gear.

Category List
Benefits
  • Protect expensive film/video equipment from theft, loss or damage
  • Cover replacement costs if equipment is stolen, lost or damaged
  • Peace of mind knowing equipment is protected from unforeseen accidents
  • Covers equipment during transportation and on location shoots
  • Covers equipment during periods when it may not be in regular use
  • Provides liability coverage if rented equipment is damaged while in your possession
  • Policy can be customized to fit a company’s unique equipment needs and budget
  • Pays out claims quickly so business operations are not disrupted
  • Special filming location coverage for equipment used on location or while traveling
Use Cases
  • Insuring expensive filming/production equipment (cameras, audio equipment, lighting equipment, drones, etc.) against theft, damage, or loss
  • Insuring specialized vehicles (shuttles, production trucks, trailers, etc.) used for location filming
  • Insuring studio spaces, editing suites, and other fixed production facilities against property damage
  • Insuring expensive costumes, props, and set pieces against damage or loss during production
  • Providing cast insurance for injuries sustained during production

Based on typical insurance pricing models, equipment insurance for businesses in the other motion picture and video industries (NAICS 512199) would be estimated around $1.50-$2.00 per $100 of equipment value. This price was derived considering average equipment values for production equipment like cameras, lighting, and other equipment common to video and film production businesses in this industry. The final estimated price of $1.75 per $100 was calculated as the midpoint of the estimated range.

Estimated Pricing: $1.75/100

Directors And Officers Insurance

Directors and officers insurance, also called D&O insurance, is an important type of liability coverage that helps protect business owners and executives from lawsuits arising from their official duties. It covers legal defense costs and any damages or settlements that result from claims against directors or officers due to wrongful acts committed in their capacity as company representatives.

Category List
Benefits
  • Protect directors and officers from personal liability lawsuits
  • Cover legal fees if a lawsuit is filed against directors or officers
  • Provide defense coverage if a lawsuit is filed
  • Cover investigations or inquiries from government regulatory agencies
  • Reimburse a company for indemnification payments to officers and directors
Use Cases
  • Protection against claims for wrongful acts including any actual or alleged breach of duty, neglect, error, misstatement, misleading statement, omission or other act done or attempted by any director or officer.
  • Reimbursement of legal defense costs incurred while defending claims made against directors and officers for their wrongful acts.
  • Coverage for claims alleging discrimination, sexual harassment, wrongful termination and other employment practices violations.
  • Protection against shareholder derivative lawsuits and related legal defense costs.
  • Indemnification for insider trading, privacy violations and intellectual property infringement claims.

Based on typical pricing models for this type of insurance, the average annual cost for Directors And Officers Insurance for small to medium sized businesses in the Other Motion Picture and Video Industries with NAICS Code 512199 would be around $5,000-$10,000. Factors that influence pricing include annual revenue, number of employees/directors, and risk profile of the company’s operations.

Estimated Pricing: $5,000-$10,000

Business Interruption Insurance

Business interruption insurance provides an important financial safety net for motion picture studios and video production companies by protecting their cash flow and ability to resume operations if filming is unexpectedly interrupted or revenue drops due to covered events outside of their control.

Some key uses of business interruption insurance for companies in the motion picture and video industries include covering losses of income from natural disasters damaging equipment, locations becoming unavailable, filming interruptions from government closures, and loss of revenue if a key talent is injured and unable to work. Pricing for this coverage is estimated around 1-2% of annual revenue up to $5 million for a typical production studio.

Category List
Benefits
  • Covers loss of income if your business operations are interrupted
  • Protects cash flow if property is damaged in events like fire, storms or vandalism and you have to temporarily close
  • Reimburses continuing expenses like payroll, rent and loan payments if your revenue drops unexpectedly
  • Covers loss of income due to utility outages, including power or internet outages
  • Provides funds to pay contractors to help restore operations after an event causes business interruption
  • Helps your business stay afloat financially during downtime so you can reopen and resume operations as quickly as possible
  • Covers loss of earnings from dependent properties or customer locations if they are unable to provide resources or demand due to an unplanned event
Use Cases
  • Loss of income due to fire or natural disaster that damages filming equipment and sets
  • Unexpected closure mandates from government orders such as during the COVID-19 pandemic
  • Loss of income if a star actor/director becomes unable to work due to injury or illness
  • Loss of income if a key location becomes unavailable during filming due to unforeseen circumstances

Based on typical coverage amounts and rates for a production studio in this industry, business interruption insurance would be priced at around 1-2% of gross annual revenue covered up to $5 million. For a studio with $10 million in annual revenue, this would equate to a price of around $100,000-$200,000 per year.

Estimated Pricing: $100,000-$200,000

Cyber Liability Insurance

Cyber liability insurance provides important protection for businesses in industries that handle sensitive customer data such as the motion picture and video industries. It can help cover the costs of data breaches, cyber attacks, and other incidents that could damage a company’s reputation and finances.

Some key benefits of cyber liability insurance for businesses in the other motion picture and video industries include coverage for legal costs, data breach notification expenses, business interruption costs, system restoration fees, and more. It also protects against third party claims and lawsuits in the event customer information is compromised. Common causes of cyber incidents like ransomware, hacking, and human errors are covered.

Category List
Benefits
  • Protection against cyberattacks and data breaches
  • Coverage for legal costs and lawsuits in the event of a breach
  • Coverage for PR and notification costs if personal data is compromised
  • Coverage for business interruption expenses if systems are down due to an attack
  • Reimbursement for costs associated with restoring systems and data after an attack
  • Coverage for fraud or embezzlement resulting from a cyber incident
  • Protection of brand and reputation in the event of a serious cyber incident
Use Cases
  • Data breach or cyber attack leading to loss of private customer information
  • Network security failures exposing private information
  • Third party liability for unauthorized access to systems or data
  • Technical failure or human error resulting in system outage
  • Ransomware attack encrypting critical systems and demanding ransom
  • Loss of revenue and extra expenses from downtime of critical systems due to a cyber attack
  • Liability claims and lawsuits from customers alleging negligence that led to a data breach

Based on industry statistics, the average cyber liability insurance pricing for businesses in the other motion picture and video industries with NAICS code 512199 is around $1,500-2,000 per year. This pricing was derived from looking at typical policy rates for small businesses in creative and media industries which often deal with digital assets and online operations, and have similar exposure to data privacy regulations. The final estimated price falls in the middle of the given range.

Estimated Pricing: $1,750

Workers Compensation Insurance

Workers compensation insurance provides critical financial protections for employees and employers in the motion picture and video production industries. It covers costs of medical treatment, lost wages, and liability risks for work-related injuries common on film/video sets involving stunts, equipment use, and various production activities. Estimated pricing for workers compensation insurance policies in this industry is around $1.50 to $2.00 per $100 of payroll. Key benefits include coverage for on-set injuries, repetitive stress injuries, transportation accidents, illnesses contracted on location, and costs if a major injury prevents returning to work. It also ensures compliance with state laws and reduces liability risks from any accidents or injuries during production.

Category List
Benefits
  • Covers medical expenses if an employee gets injured or sick from work
  • Compensation for lost wages if an employee cannot work due to a work-related injury or illness
  • Protection from lawsuits if an employee is injured on the job
  • Reduced costs of hiring compared to self-insuring
  • Complies with state workers compensation laws
  • Peace of mind knowing employees are covered for on-the-job injuries or illnesses
Use Cases
  • Covering injuries that happen on set during filming or production activities like falling, slipping, lifting heavy equipment
  • Covering injuries from accidents that happen when using production vehicles, drones, special effects, stunts or rigging equipment
  • Covering claims from repetitive stress or musculoskeletal disorders from activities like camera operating, gripping, lighting, editing
  • Covering medical bills and lost wages if an employee contracts an illness from a location like COVID-19
  • Covering injuries or accidents that occur during transportation of crew and equipment between locations
  • Covering costs if a major injury prevents an employee from returning to their regular job
  • Reducing liability risks if an employee or third party is injured on set and needs to be compensated

Based on national averages, the estimated average pricing for workers compensation insurance for businesses in the Other Motion Picture and Video Industries with NAICS Code 512199 is around $1.50 to $2.00 per $100 of payroll. This pricing is derived based on industry risk factors and average claims rates. The rate may vary depending on individual business risk characteristics such as safety records, staff roles/duties, and location.

Estimated Pricing: $1.50-$2.00/100 of payroll

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) protects businesses in the other motion picture and video industries from costly lawsuits related to human resource issues and employment decisions. It provides coverage for legal defense costs and damages if employees file claims against the business. Common claims involve wrongful termination, discrimination, harassment, privacy violations, wages/hours disputes, workplace safety issues, family and medical leave act (FMLA) violations, and other employment-related legal actions. On average, EPLI insurance costs between $3,000-$5,000 annually for businesses in this industry.

Category List
Benefits
  • Protection against employee lawsuits such as wrongful termination, discrimination, harassment and others
  • Coverage for legal expenses to defend your business if a lawsuit is filed
  • Compensation if you are required to pay damages from an employment related claim
  • Protection of your business assets from large settlement payouts or damage awards
  • Access to experts and attorneys dedicated to defending against employment-related claims
  • Peace of mind knowing your business is protected from costly lawsuits and legal fees
Use Cases
  • Wrongful termination lawsuits
  • Discrimination or harassment claims
  • Claims regarding violations of privacy
  • Claims of failure to employ or promote
  • Claims of unfair treatment
  • Wage and hour claims such as unpaid overtime or other compensation
  • Workplace safety lawsuits
  • Family and medical leave act (FMLA) violations

Based on typical insurance pricing models, the average estimated pricing for Employment Practices Liability Insurance for businesses in the Other Motion Picture and Video Industries with NAICS Code 512199 would be around $3,000-$5,000 per year. This pricing range was derived based on factors such as the typical payroll and number of employees for businesses in this industry, expected risk level based on litigation statistics, and insurance benchmarks for similar sized businesses in comparable creative/entertainment industries.

Estimated Pricing: $3,000-$5,000

Conclusion

Proper business insurance safeguards video and film production companies from unexpected losses and lawsuits that could damage their operations or put them out of business. The insurance policies outlined here provide essential financial protection and peace of mind so these creative businesses can focus fully on their craft.

Frequently Asked Questions

Share via
Facebook
X (Twitter)
LinkedIn
Mix
Email
Print
Copy Link
Copy link
CopyCopied