To assist filmmakers in understanding the often confusing insurance language, we have posted the following Glossary of Insurance Terms for Productions.  We will be adding to this compilation of terms as the requests are received.

Coverages referenced on this website may not be available in all territories and may vary depending on the exposure. Minimum premiums may vary by State. Coverages and services described in this website are generally stated for the purpose of promotion. The material does not modify or amend the terms, conditions, or coverages of any policy. Please ask your Supple-Merrill & Driscoll, Inc. representative to explain coverage details, exclusions, limits or other provisions of any insurance policy.

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Above the Line In the movie industry, above-the-line expenditures (ATL) are negotiated or spent before filming begins. These costs can include rights for the material on which the screenplay is based and salaries for the screenwriter, lead producer(s), star actors and director. ATL personnel customarily do not include the Line Producer, Unit Production Manager or other salaried players. In television production, above-the-line expenses include salaries for the positions mentioned above (typically all employees working under individual contracts) but are budgeted on a weekly or episodic basis for the run of a series.

Additional Insured A person or entity that is protected against loss by the terms of the policy, in addition to the named insured.

Adverse Weather Coverage for extra expense incurred by the interruption or abandonment of the event or production due to adverse weather conditions at the location.

Advertising Injury Arises out of oral or written publication of material that slanders or disparages a person or organization or its products or services; publication of material that violates a right to privacy; misappropriation of advertising ideas or style of doing business, or infringement of copyright, title or slogan, but not infringement of trademark and trade names alone.

Aircraft Insurance Required when a plane or helicopter is rented, leased, or borrowed for use as a picture plane, to scout locations, or for aerial photography. Hull coverage may also be required if the production company is responsible for physical damage to the aircraft itself.

Animal Mortality Provides indemnification to the production company for the value of an animal that dies during a production or for the net loss due to illness or destruction of an animal used in a production. Values of animals have to be established in advance and current Veterinarian Certificates are required.

Auto Coverage (Hired & Non-Owned) All vehicles that you rent for the production.  Liability covers injury to third parties or damage to their property.  Physical Damage provides coverage for damage to the vehicles.

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Below the Line In a motion picture or television production budget, below-the-line costs include salaries of non-starring cast members and technical crew, use of the film studio and its technical equipment and travel, location and catering costs, etc. In contrast to above-the-line costs, the below-the-line budget is usually fixed. Some of the positions in the below-the-line category are director of photography, assistant directors, gaffer, grips, etc.

Bereavement Family Bereavement is an extension of Cast insurance. It indemnifies the production company for the net loss or for extra expenses to begin or complete principal photography of an insured production, due to serious illness or death of an immediate family member of any insured artist or director. (See cast insurance).

Bodily Injury Liability The liability that arises from the injury or death of another person.

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Care, Custody and Control Provides legal liability coverage for loss, damage or destruction of property belonging in the care, custody or control of the production company.

Cast Insurance This coverage usually is purchased on feature films or TV productions (except documentaries) but also may be purchased for other types of production. It indemnifies the production company for the net loss or extra expenses to begin or complete principal photography of an insured production, due to death, injury or illness of any insured artist or director. Insured persons are initially covered for accident only, until they are examined and complete a medical questionnaire. The insurer then will expand the coverage to include illness.

Certificate of Insurance The insurance company document that verifies insurance.

Charterer's Liability Charterer’s Liability is a form of contingent liability coverage, which indemnifies an additional named insured should the coverage be insufficient to properly cover the additional insured. Under Charterer’s liability, the charterer must defend the matter, and if found liable, is reimbursed by the insurance carrier. This form of coverage doesn’t cover requirements of the Jones Act and is seldom used by production companies.

Civil Authority Coverage extension under Extra Expense that reimburses a production for delays due to the action of a government authority.

Claims Made Policy provision limiting coverage to claims that are filed during the policy period (as opposed to an occurrence policy provision).

Clearance Procedure Procedures recommended by the clearance attorney for the production company to follow that mitigate the potential for Errors & Omissions claims.

Completion Bond A written contract that guarantees a motion picture will be finished and delivered on schedule and within budget as required by the bank or other financiers funding an independent film.

Copyright Report A research report outlining copyright procedures required to obtain Errors & Omissions Coverage.

Cost of Hire The budget costs for vehicle rentals -- used to determine auto insurance premiums.

Crime Coverage Reimburses the production company for loss of money, securities, or inventory resulting from crime such as employee dishonesty, embezzlement, forgery, robbery, safe burglary, computer fraud, wire transfer fraud, counterfeiting and other criminal acts.

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Declaration The formal addition of a new production to an existing insurance program. Also the first page of an insurance policy that summarizes key information specific to the policy; sometimes called a dec page.

Deductible The amount for which an insured is responsible before the insurance company pays a claim.

DICE A type of annual production package policy. Acronym for Documentary, Industrial, Commercial, Educational.

Distributor Errors & Omissions Legal liability coverage, including defense costs, for claims alleging unauthorized use of titles, format, ideas, characters and plots; plagiarism and unfair competition. Also provides coverage for libel, slander, defamation of character or invasion of privacy.

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Employment Practices Liability Provides defense and indemnity insurance for claims arising from the employer/employee relationship. The policy shields employers from claims of harassment, discrimination, failure to hire, wrongful termination, and includes all current, former and prospective employees, directors and officers, even the corporate entity.

Endorsement A document that changes the policy; changes to the policy language.

Entertainment Package The standard policy that covers all property and business interruption expenses on all types of productions.

Errors & Omissions Legal liability coverage, including defense costs, for claims alleging unauthorized use of titles, format, ideas, characters and plots; plagiarism and unfair competition. Also provides coverage for alleged libel, slander, defamation of character or invasion of privacy.

Essential Element Essential element refers to a person who is essential to the production. This is a policy endorsement added to cast coverage wording. A claim is made under the cast coverage if death or injury or sickness for a specified time of an essential element during pre-production or principal photography prevents the completion and delivery required by the distributors and makes it necessary to abandon the production. A separate charge generally applies.

Excess Liability (Movie Boat Program) The basic Movie Boat Line Slip covers Protection & Indemnity in the amount of $1,000,000. Each vessel is considered a separate insured entity. $9,000,000 excess can be attached without notice to underwriters. Higher amounts of excess liability can be arranged.

Exclusion A specific loss or risk not covered by the policy.

Extra Expense Extra expense reimburses the insured for the out-of-pocket expenses in the event of the interruption, postponement or cancellation of the specifically declared production as a result of loss or damage to or destruction of property or facilities contracted for use by the insured during the coverage term.

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Faulty Processing Covers loss, damage or destruction of raw film or tape stock, exposed film (developed or undeveloped), recorded videotape, matrices, lavenders, positives, interpositives, working prints, cutting copies, fine grain prints, color transparencies, cels, art work and drawings, software and related materials used to generate computer images, sound tracks and tapes, resulting from fogging or use of faulty materials (including cameras or videotape recorders), faulty sound equipment, or faulty developing. Faulty coverage does not include loss caused by errors of judgment in exposure, lighting or sound recording, from use of incorrect type of raw stock or faulty manipulation by the cameraman. Faulty Stock, Camera and Processing coverage can be purchased only with Negative, Film and Videotape coverage.

Fine Arts Jewelry/Fine Arts coverage is generally sub-limited under the Props Sets & Wardrobe coverage. Amounts over the sub-limit must be scheduled in the policy.

Foreign Liability Covers Bodily Injury and Property Damage liability arising out of accidents and fortuitous occurrences outside the United States of America and Canada.

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General Liability Covers the insured for losses due to bodily injury or property damage caused by the insured’s employees or agents.  Locations will require general liability for 1,000,000.  The aggregate is the total liability limit.  The occurrence is the limit per claim. With blanket additional insureds, your vendors and locations will be provided with certificates of insurance naming them as additional insureds in the event of a loss. Unlimited certificates can be issued. The City of LA, other cities, and entities may require “special wording on their certificates or have a special form they require be completed.  Film permit offices will require this.

Gross Production Costs All costs, including overhead, chargeable directly to the production stated at the time of declaration of an insured production or series of productions. The following costs are not included: story, scenario, music rights, sound rights, royalties, residuals, continuity, premiums paid for the insurance, interest on loans and taxes.

Guild Travel Accident Travel accident coverage with limits required by the guild or union contacts with the producer. Coverage also may be extended to non-union employees, up to $50,000 each.

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Hull and Machinery Hull and Machinery protects owners and production companies with an insurable interest in vessels and floats of all kinds against the expense that might be incurred in repairing or replacing property damaged, destroyed or lost because of a covered peril. Coverage is written on an “all risk” basis. Included in the hull policy is Collision Liability, up to the value insured on the hull policy, for damage caused by collision with another vessel.

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Jewelry Jewelry /Fine Arts Coverage is generally given a sub limit under the Props Sets & Wardrobe coverage. Amounts over the sub-limit must be scheduled under the policy.

Jones Act An injured American seaman (and sometimes even an injured alien seaman) has a remedy under the Jones Act if the injury was caused by the negligence of the employer or his or her agents and employees. The clear purpose of the Jones Act was to extend to seamen a cause of action against their employers measured by the Federal Liability Act. Insurance coverage under these Federal Acts is much broader than traditional workers compensation policies. The courts have given an expansive definition as meaning almost anyone who works aboard a vessel. Workers compensation policies usually exclude coverage for work aboard vessels.

Jurisdiction Jurisdiction means the legal environment (state, city or country) that will apply to an insurance contract.

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Loan-Out Company A corporation that is controlled by a performer and furnishes that performer’s services.

Loss Adjuster A specialist who investigate claims for insurance companies and helps policyholders get paid for their loss.

Loss of Use I income lost due to damage or loss to tangible property, such as a camera package.

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Medical Examinations Full cast coverage is subject to acceptance of a completed medical exam form and is approval by the insurance company. The cast member must be examined by a physician appointed or approved by the insurance company.

Medical Payments (Under General Liability) Reimbursement for reasonable first-aid and medical expenses for persons other than the insured or employees of the insured, injured due to the negligence of the insured.

Miscellaneous Equipment Protects against loss or damage to property such as cameras, portable generators, lighting and sound equipment rented by the production company.

Money & Securities Coverage for money and securities lost due to fire, burglary or armed robbery.

Mysterious Disappearance Claims from mysterious or unexplained disappearances are not typically covered by insurance.

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Occurrence (see Claims Made) A claim is paid if the event occurred during the policy period regardless when the claim is submitted.

Office Contents Provides coverage for loss or damage to office furnishings and equipment located in a temporary space.

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Payroll Service Typically provides the workers’ compensation and disability benefits required by each state for cast and crew members. (See Workers’ Compensation below.)

Physical Damage Property losses arising out of direct damage to tangible property.

Political Risk Covers a company’s financial and real property assets for losses from expropriation, currency inconvertibility, terrorism and other political events. Types of coverage can include Kidnap & Ransom and Evacuation & Repatriation.

Post Production The final stage in the production of a film after completion of principal photography. Involves editing, addition of sound/visual effects, dubbing, etc.

Pre-existing Condition A medical condition affecting the artist that exists before the medical examination performed for a specific production.

Principal Photography The time period in which the production is actually shot. This does not include pre- or post-production time.

Producer/Distributor Liability Coverage for claims alleging unauthorized use of titles, format, ideas, characters, and plots; plagiarism; and unfair competition. Also provides coverage for alleged libel, slander, defamation of character or invasion of privacy.

Proposal A written offer that outlines all insurance coverage requested by the client.

Props/Sets/Wardrobe Provides coverage for props, sets, scenery, costumes and wardrobe against risk of direct physical loss, damage or destruction during the specified production period.

Protection & Indemnity This coverage protects the insured against 1) liability for specified types of Bodily Injury or Property Damage and 2) certain unexpected vessel related exposures and disbursements.  The principal liabilities that are covered are:

• Loss of life, personal injury and sickness of the vessel crew, production crew and third parties;

• Damage to cargo on board the vessel;

• Damage to piers, docks, jetties, and other fixed objects;

• Damage to other vessels and their cargo caused otherwise than by collision with the other vessel;

• Inadvertently incurred fines and penalties because port rules were violated;

• Expenses incurred when the law requires that a wrecked vessel be removed; and

• Limited pollution liability coverage for vessels under 100 gross tons. (Fines are excluded from coverage).

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Railroad Protective Coverage for claims that arise from the production at or near railroads. Coverage includes Bodily Injury Liability, Property Damage Liability and Physical Damage to railroad property.

Rented Equipment, Props, Sets and Wardrobe Camera, sound, lighting and miscellaneous rented equipment. Owned equipment is not covered. Props, sets, and wardrobe are covered. The insurable value should be the total value of your rented equipment, props, sets, and wardrobe from all vendors. Equipment insurance includes your vendors being provided with certificates of insurance naming them as loss payee in the event of a loss.  Unlimited certificates can be issued.

Risk Management Procedures that minimize the financial impact of a risk by identifying and analyzing potential sources of loss.

Running Down Clause If there is no hull insurance on the vessel, Collision Liability is added to the Protection & Indemnity policy for the amount that would have been covered by the hull policy.

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Statement of Health A questionnaire that must be completed by an artist in order to get coverage for full cast insurance. The form must be approved by the insurer.

Stop Date The termination date in an artist’s contract for a specific production.

Storyboard An outline or script of a production.

Stunt Breakdown An outline of stunt activity.

Subrogate After the insurance company pays the insured for a claim, it has the right to recover the amount of the loss from the liable third party.

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Territory Specifies the geographic area where injury or damage must occur for coverage to apply.

Terrorism The use of violence to produce terror for political or ideological purposes. Terrorism is distinct from war in that it need not be the act of a military force or be directed by a sovereign power. Foreign acts of terrorism may be certified as an insurable loss exposure under the Terrorism Risk Insurance Act (TRIA).

Third Party Property Damage Covers damages to property of others while it is in the care, custody and control of the insured (i.e. damage to a house that you are shooting in). This includes loss of use of the property. Coverage does not apply to damage caused by operation of rented or leased motor vehicles, aircraft or watercraft that are covered under props, sets, or wardrobe, or to miscellaneous equipment insurance. This coverage is not included under a Comprehensive General Liability Policy.

Title Coverage A single film title cannot be copyrighted. Therefore, during the development process, a lawyer should run a title search to discover if the title has been used before as a film title, song title, chapter heading or in newspaper articles. The search also will recommend whether your title can be used for your type of media. The more the title has been used, the safer it is to use again. If the title is connected with only one thing, for example “Gone with the Wind,” then it is inadvisable to use it. The title user can claim that diminished financial prospects by using the same or a similar title.

Tower's Liability Hull & P&I policies contain standard towage exclusion clauses. Towers liability clauses provide coverage for the object being towed, and coverage for any cargo aboard the tow.

Treatment The starting point of a production, it outlines information about the production’s subject and its direction. The treatment describes locations, situations, stories, images, tone and color, pacing, etc. of the production. This helps in creating a budget.

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Umbrella This provides excess liability over the general liability, automobile (if purchased) and employer's liability (if purchased) subject to a $10,000 deductible and can be obtained in increments of 1,000,000. The umbrella policy serves two purposes: 1) it provides excess limits when the limits of underlying liability policies are exhausted by the payment of claims; 2) it picks up where the underlying policy stops when the aggregate limit of the underlying policy is exhausted by the payment of claims.

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Video Production Professional video production, or videography, is the videotaping, editing, and distributing a finished video product.

Voluntary Workers’ Compensation Extends workers’ compensation benefits to employees who may not be entitled to benefits under the workers’ compensation law.

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Waiver of Subrogation The insurer relinquishes the right to collect damages from another party paid on behalf of the insured. The waiver of subrogation is referred to as a "transfer of rights of recovery."

Watercraft (non-owned) Liability Required when a boat is rented, leased or borrowed for use as a picture boat, chase boat or camera boat. Hull Coverage may also be required if the production company is responsible for physical damage to the craft itself.

Weather Insurance Provides coverage for extra expense incurred by the interruption or abandonment of the production due to adverse weather conditions at the location that which reasonably and necessarily prevents filming or taping.

Wharfinger's Liability The marine form that covers the liabilities and bailments of parties that operate or control a dock, pier or marina.

Workers’ Compensation Injury to your compensated and non-compensated employees and volunteers. For corporations, partnership, LLC’s and other legal entities, officers are typically excluded from coverage.  For individuals and dba’s, the owners are typically excluded from coverage.