Key Takeaways
- General liability insurance protects against bodily injury and property damage claims
- Property insurance covers expensive filming equipment, sets and vehicles
- Errors & omissions insurance protects against lawsuits from mistakes or omissions in work
- Commercial auto insurance covers vehicle liabilities and losses
- Workers’ compensation covers medical costs and lost wages for injured employees
- Equipment insurance protects costly cameras, audio gear and other production assets
Introduction
The motion picture and video production industry relies on specialized equipment, vehicles and locations which presents unique risks. To protect their businesses and operations, producers in NAICS code 512110 should carefully evaluate the types of insurance coverage needed including general liability, property, errors & omissions and others as discussed below.
General Liability Insurance
General liability insurance is an important coverage for businesses in the motion picture and video production industry. It protects them from financial losses and lawsuits that may arise during the production process. Some key benefits of general liability insurance for these businesses include covering bodily injury and property damage claims from accidents on film/video sets, protecting from lawsuits if equipment is damaged during productions, and covering medical payments if someone is injured on a production’s property. The insurance also covers legal costs if a business is sued for intellectual property infringement and provides protection from cancellation or postponement of productions due to unexpected events.
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Based on national industry data, the estimated average annual pricing for general liability insurance for businesses in the motion picture and video production industry with NAICS Code 512110 is $3,500. This pricing is calculated based on average revenue, number of employees, types of operations/activities, and loss history data of businesses in this industry.
Estimated Pricing: $3,500
Property Insurance
Property insurance provides critical protection for businesses in the motion picture and video production industry. It safeguards expensive equipment, physical assets, buildings and vehicles that are essential to operations against financial losses from accidents, damage, theft and other unforeseen incidents during production activities. Coverage also protects valuable film footage against loss or damage which could be very costly to re-shoot. Property insurance ensures productions can continue even after unexpected property damages or thefts and provides peace of mind for business owners.
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Based on industry data, the average cost of property insurance for businesses in the NAICS Code 512110 Motion Picture and Video Production industry is estimated to be around $3.50 per $100 of insured property value. This pricing estimate takes into account factors like the types of property insured (e.g. cameras, lighting equipment, sets, costumes), level of risk for damage/theft, and average claim histories for this industry. The price is derived from insurance rate tables and underwriting practices for businesses in this industry segment.
Estimated Pricing: $3.50 per $100 of insured property value
Errors & Omissions Insurance
Errors and omissions insurance, also known as professional liability insurance, provides important coverage for businesses in the motion picture and video production industry. It protects them from costly lawsuits that may arise from accidental mistakes or errors in their work.
Some key benefits of E&O insurance for these types of businesses include protecting their reputation and finances if claims are made, covering legal fees and settlements, and offering specialized coverage tailored to the unique risks they face, such as issues around permissions, intellectual property, and contract fulfillment. Pricing for E&O insurance in this industry averages between $2,000-$5,000 annually based on factors like revenues, number of employees, project types, and claims history.
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Based on industry research, the estimated average pricing for Errors & Omissions insurance for businesses in the motion picture and video production industry (NAICS 512110) is around $2,000 – $5,000 per year. Pricing can vary based on factors like annual revenues, number of employees, types of projects/content created, risk profile, claims history, and insurance company/program selected. This price range was derived from analyzing publicly available rate quotes from several reputable E&O insurance providers for this industry.
Estimated Pricing: $2,000 – $5,000
Commercial Auto Insurance
This reference provides an overview of commercial auto insurance, including its key benefits and use cases for motion picture and video production businesses. It breaks down the top benefits of this type of insurance as well as common use cases. Additionally, it includes an estimated average annual premium amount businesses in this industry can expect to pay.
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Based on industry data and risk factors, the estimated average annual premium for commercial auto insurance for businesses in the motion picture and video production industry with NAICS code 512110 is around $2,500 per vehicle. This estimate takes into account factors like the types of vehicles used, average miles driven, safety records, and liability exposure given the nature of the business operations for this industry.
Estimated Pricing: $2,500
Workers’ Compensation Insurance
Workers’ compensation insurance provides crucial protection for businesses and employees in the motion picture and video production industry. Due to the physical demands and potential risks involved in productions, injuries are unfortunately common on film/TV sets. The estimated pricing information provided shows that policies for this NAICS code tends to be in the range of $2.50-$3.00 per $100 of payroll, which is higher than lower risk office or retail industries due to the nature of the work. The use cases highlight some specific production activities and locations that pose injury risks, further emphasizing the need for workers’ comp coverage. The benefits section outlines the key protections this type of insurance provides to both employers and staff.
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For businesses in the motion picture and video production industry (NAICS 512110), the estimated average pricing for workers’ compensation insurance is around $2.50 – $3.00 per $100 of payroll. This price was derived based on analyzing industry risk factors such as stunts/special effects, equipment usage, long hours, and location/environment risks that are commonly present in film/video productions. The industry has a higher risk profile than lower risk office/retail industries.
Estimated Pricing: $2.50 – $3.00/100 of payroll
Equipment Insurance
Equipment insurance provides valuable protection for businesses in the motion picture and video production industry that rely heavily on expensive cameras, audio equipment, lighting and other production gear for their projects.
The reference also provides details on the top benefits of equipment insurance such as coverage for repair, replacement, liability, transit and more. It outlines the top use cases like protection from theft/damage and coverage for off-premises equipment. Additionally, it estimates the typical pricing range of $5,000-$10,000 annually based on common equipment values and insurance rates for the industry.
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Based on typical equipment values and costs in the motion picture and video production industry (NAICS Code: 512110), the average estimated annual pricing for equipment insurance would be around $5,000-$10,000. This price range was calculated based on industry reports of average equipment values of $100,000-$500,000 and standard insurance rates of 1-2% of total equipment value per year.
Estimated Pricing: $5,000-$10,000
Business Interruption Insurance
Business interruption insurance provides crucial protection for motion picture and video production companies against unexpected disruptions to their operations and revenue streams. The top reference highlights some key benefits, use cases and estimated pricing for this important type of coverage tailored for businesses in the NAICS code 512110 industry.
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Based on the average business interruption insurance rates for creative/media industries and factoring in the project-based nature of the work in this NAICS code industry, the estimated average annual premium would be around 1.5-2% of the total insured value for business interruption coverage. For a small to medium sized production company with $5-10 million in annual revenue, the estimated annual premium would be $75,000-$200,000.
Estimated Pricing: $75,000-$200,000
Inland Marine Insurance
Inland marine insurance offers valuable protection for businesses in the motion picture and video production industry. It covers expensive filming equipment, vehicles and props that are highly susceptible to damage while on location or in transit between different shooting sites.
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Based on typical inland marine insurance pricing models and risk factors for this industry, the estimated average annual premium for inland marine insurance would be around $5,000. This takes into account the frequent transportation of expensive filming equipment between locations as well as risks during production. The premium was calculated based on 15-20% of the total insured value which is typically $250,000-$500,000 for most small to medium size production companies.
Estimated Pricing: $5,000
Commercial Umbrella Insurance
Commercial umbrella insurance provides important liability protection for motion picture and video production businesses. It protects against costly lawsuits, covers legal defense costs, and provides additional liability coverage above primary insurance limits – all of which are crucial for risks involved in filming at locations and using specialized equipment.
Some key benefits of commercial umbrella insurance for businesses in this industry include covering intellectual property claims, protecting against lawsuits from talent or crew, and providing protection for transportation-related liability risks. Estimated annual pricing is between $5,000-$10,000 depending on coverage amounts and company-specific factors.
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Based on typical commercial umbrella insurance pricing considerations such as industry risk factors, underlying insurance coverage limits, and company size/revenue, the estimated average annual pricing for businesses in the motion picture and video production industry with NAICS code 512110 would be around $5,000 – $10,000. Factors such as the specific production activities, financials, loss history, and additional insured requirements would impact the final quoted pricing.
Estimated Pricing: $5,000 – $10,000
Conclusion
Proper insurance planning is essential for motion picture and video production companies given the substantial financial investments in equipment and properties as well as risks inherent in filming. By understanding the key exposures and selecting the appropriate insurance policies, producers can safeguard their businesses against unexpected losses and lawsuits to allow their creative visions to be realized without disruption.