Arroyo Entertainment Insurance Services - Insurance Basics

As a producer I grew weary of the lack of service and direction I received from insurance brokerages that we had purchased production insurance policies through. To address the problem, we started an insurance brokerage focused on serving film producers and entertainment professionals. At Arroyo Entertainment Insurance Services you’re more than just a number, you’re a valued colleague in the pursuit of the art that we love called Film and Entertainment.

I will be sharing insights on film insurance basics and intricacies as we look to equip producers and entertainment professionals in all types of insurance matters. Here’s our first topic, Short term vs Annual production insurance.

When navigating #FilmProduction, understanding the difference between short-term and annual film production insurance is important for producers. Both options provide coverage, but each suits different types of projects. Here's a breakdown to help you make the right choice for your production.

Short-Term Film Production Insurance (typically a 60 Day Policy Coverage)

Short-term policies are ideal for productions with specific start and end dates, such as:

·?????? Independent Films

·?????? Commercials or Music Videos

·?????? Short Films or Student Projects

Reasons to choose a short-term policy:

?·?????? Cost-Effective for Limited Duration: If your production spans days or weeks, short-term insurance can save money.

·?????? Customizable Coverage for Project-Specific Needs: You can tailor coverage to fit the specific risks of your shoot.

·?????? Quick Setup: Short-term policies can often be arranged quickly, ensuring that urgent projects get covered on time.

Annual Film Production Insurance

Annual policies provide coverage for multiple projects over a 12-month period, suited for:

?·?????? Production Companies with Year-Round Activities

·?????? Producers Managing Multiple Projects Simultaneously

·?????? Studios or Larger Independent Production Houses

Reasons to choose an annual policy:

?·?????? Cost Savings Over Multiple Productions: Annual insurance can be more economical if you're producing several projects in a year.

·?????? Comprehensive Coverage: Provides consistency in coverage across all projects, reducing the need to re-negotiate or update policies for each production.

·?????? Simplified Administration: Fewer policies to manage, resulting in less paperwork and administrative hassle.

What to Expect in Terms of Cost

Film production insurance generally represents 2-3% of a film's total budget, though this can vary depending on the project's complexity, location, stunts, or special effects. For smaller productions, policies can start around $1,000-$2,500 for short-term coverage, while annual policies may range from $5,000-$20,000+, depending on the scope of coverage.

Your film’s insurance needs should be evaluated by a broker to determine the best type (short term vs annual) and the elements that should be included in your policy. Choosing the right insurance policy can protect your project and ensure peace of mind. Whether you go short-term or annual, aligning your insurance with your production's scale and risk factors is essential. #FilmInsurance #IndieFilm #Filmmaking #FilmBudget #ProductionPlanning #EntertainmentIndustry