NU Online News Service, July 13, 1:30 p.m. EDT

Creating the year's biggest-budget blockbuster films means that actors and film crews must take some big-budget risks, and it is up to insurers to guarantee that in the event of some mishap producers and financiers will have financial protection when production doesn't go as planned.

One such company is Fireman's Fund, which has insured recent 2012 releases “Avengers” starring Robert Downy Jr. and Scarlett Johansson, “Battleship” with Alexander Skarsgård and Liam Neeson, Seth McFarlane's “TED” and “Savages” with Blake Lively.

The company's claims and risk services teams help studios protect themselves from liabilities coming from cast and crew members and production equipment, each of which come with a host of technical risks and the possibility of injury, illness or other setbacks that can halt the production process.

“Summer films typically include action-oriented, big budget films and while fans enjoy watching these movies most aren't aware of the risks involved when filming major stunts, explosions, fight scenes and car chases, which can contribute appreciably to a film's overall risk,” says Lauren Bailey, Fireman's Fund vice president of entertainment.

“Delays can cost a production millions of dollars if a cast member becomes injured and is unable to work, costing up to $250,000 a day for a major budget film,” said Wendy Diaz, entertainment underwriting director at Fireman's Fund. “Filming in international locations also poses a variety of challenges, including the set, transportation of film equipment and costumes, and the potential for dealing with illness in a foreign location.”

The corresponding insurance plans can be more complex than an action-packed plotline.

Fireman's Fund cast coverage is like business interruption coverage for the production company in the event of an artist's unavailability due to illness, injury or death.

Props, sets and wardrobe coverage pays for losses, damages and destruction to any items that are needed in front of the camera.

Extra expense coverage pays for the production company's losses incurred by sets, equipment, or any other physical object on location.

Third party property damage coverage pays for the insured's legal liability for the property on filming location.

Miscellaneous equipment coverage pays for losses or damages related to sound, lighting, and camera equipment behind the camera.

In the event that a scene must be reshot because of faulty lab processing, broken equipment, or mistakes made while editing film negatives, faulty stock coverage pays for the correction.

“As the insurer, we're most concerned with understanding all of the safety measures in place and we work collaboratively to create a safe environment that reduces the risk for everyone involved,” said Paul Holehouse, entertainment risk consultant at Fireman's Fund.

Some of the season's upcoming films insured by Fireman's Fund, under its subsidiary International Film Guarantors, are, among a dozen others, “The Dark Night Rises” (July 20) starring Christian Bale and Liam Neeson; “Sparkle” featuring Whitney Houston, and ”Gangster Squad” with Ryan Gosling and Emma Stone.

Special Reports /

The Art of Insuring Summer&rsquo;s Blockbusters

Related Stories

Recommended For You

The Art of Insuring Summer’s Blockbusters