Canadian Underwriter

‘Demand remains strong’ for high film production insurance limits in Canada: Chubb

March 15, 2017   by Canadian Underwriter

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Falls from heights and the use of expensive antiques on sets are among the risks that film production firms should keep in mind when working in foreign locations, Chubb Ltd. said in a report released Tuesday.

“When producers choose a foreign location, they need to understand how local employment, workers’ compensation and insurance regulations may affect their project and its risk demands,” Zurich-based Chubb stated in the report, titled Foreign Productions and Tours Add Risk for Filmmakers and Artists.

“Canada, which hosts a large amount of film production, is a fairly litigious country, and demand remains strong for higher limits,” Chubb added.
The risk of lawsuits from third parties can be mitigated by using closed sets, where only workers are present, added Chubb, known until last year as ACE Ltd., which acquired Warren, N.J.-based The Chubb Corp. in 2015.

“By strictly limiting access to those considered employees, producers substantially lessen potential third party general liability claims, leaving employers’ liability claims as the main exposure.”

The authors of the report are Erica Nolda, Los Angeles-based assistant vice president with Chubb’s foreign casualty group; Katelyn Lay, vice president of underwriting for foreign casualty in the Pacific region; and Costas Hadjipateras, senior underwriter with Chubb global casualty in Los Angeles.

“Falls remain a significant cause of workplace fatalities in all industries, and film is no exception,” they wrote. “When crews are filming or actors are performing at heights above 50 feet, any slip-up can result in serious injury or death.”

Chubb also warned of exposure from scenes involving car chases, moving trains and involving boats and watercraft.

“For the sake of realism, period films may seek to borrow or lease expensive antiques or autos,” according to the report. “An antique or rare car may be worth hundreds of thousands of dollars, if not more, making any damages a fairly significant risk.”