Ledger’s death brings focus to coverages for key players in film productions

The sudden death of Brokeback Mountain movie star Heath Ledger occurred while he was in the midst of filming a new movie, focussing attention on a little-discussed aspect of the insurance industry coverage for the incapacity of an actor or other key member of a film crew in the middle of producing a movie, BestWeek U.S./Canada reports.
Ledger, who died suddenly of a suspected drug overdose in January, was in the midst of shooting “The Imaginarium of Doctor Parnassus,” a US$30-million film, A.M. Best reports.
“What is at risk on a movie is the cost incurred or committed to the completion of principal photography,” said Brian Kingman, director of strategic account management and business development for Aon/Albert G. Ruben Insurance Services, an entertainment insurance underwriter.
Producers typically “insure just about every feasible cost item in the budget including insurance premiums and the cost of the story and the scenario,” Kingman told BestWeek.
With this coverage, producers “are virtually whole if they want to opt to pull the plug and abandon the project,” he said, adding that he estimates approximately US$15 million of Imaginarium’s budget was at risk.
Kingman added that the film’s producers also bought an “essential element” endorsement covering Ledger, reports BestWeek.
“When you buy an essential element endorsement, you’re buying the right to pull the plug in the event that an actor cannot complete his or her respective duties as scripted and as per specifications,” Kingman told BestWeek, adding that the cover is applicable to sickness and injury.