Summary: In light of the tragic event that unfolded in the production phase of the proposed movie, "Rust" when Alec Baldwin unknowingly shot a gun containing a live bullet, we decided to take a look at what is entailed in film production, and what type of insurance policy would be available to cover this activity.

Topics Covered:

"Rust" Liability in the Shooting

Introduction

First off, what we learned is there is no "standard" insurance policy available to cover all of the phases of a film's production―its preproduction, production, and postproduction phases. There are numerous types of entertainment product offerings in addition to film-making, such as comedians, jugglers, fire-eaters, etc., etc. What we are taking a look at here is insurance for the film production itself, known as Film Insurance or Film Production Insurance.

 What is Film Production Insurance?

The preproduction phase of a film is when the script is written, the actors and actresses are selected, the number and type of crew members are needed, and what equipment and other resources are needed for each film scene. Once all of these needs are determined and the location has been selected, the film moves into its production phase. 

Typically the film production insurance is purchased by the film producer or the film production company; in the case of "Rust" the named insured was Rust Movie Productions, LLC. Film production insurance policies can vary by broker, depending on the current offerings from insurance companies that provide such coverage. 

Coverage periods vary depending upon the size and type of production. For example, short-term insurance policies cover productions on a project-to-project basis. This could be for as little as one filming day up to a longer period of time, but for less than one year. Short-term film production insurance is often utilized for commercial or music videos, or for film-makers on a tight budget with a short-term production plan. 

Long-term film production insurance, often an annual policy, is structured to cover several production projects over a longer period of time, or one film production that is anticipated to take a year or longer. Annual policies are often pursued by active production companies who create four or more productions a year. For film-makers who plan to shoot multiple times throughout the year, an annual policy typically will provide the best coverage and likely be more cost-efficient. Annual coverage may also be considered for those who own equipment that is leased or rented out to productions, or for an independent film producer. 

How much the insurance policy will cost depends upon a number of factors, such as the length of coverage, the type of film being produced, and the amount of risk involved in the filming. For example, we might question whether the insurer Chubb National was aware that live ammunition, even the use of blanks, was being used in the filming of "Rust". What information was provided to the insurer could have a bearing on coverage.

What Does Film Insurance Cover?

The three most common insurance policies for film-makers include general liability insurance, equipment insurance, and errors and omissions insurance. The Certificate of Liability Insurance for "Rust", obtained via Business Insider publication, listed annual policies covering General Liability at $1,000,000 limit, Auto Liability Hired and Non-Owned at $1,000,000, Workers Compensation at statutory limits of $1,000,000 covering Each Accident/Injury/Disease, and a $5,000,000 Umbrella policy. In addition, an Entertainment Package covered property consisting of rented equipment, sets, props, and wardrobes, and hired car physical damage and third party property damage. Chubb National Insurance was shown as the insurer for all coverages.

The purpose of film production insurance is to shield the production company and/or film project from any potential liabilities that may occur during its production phase. A good film production policy will protect the named insured from liability relating to any accidents or injuries occurring on the set, in driving or riding in vehicles, from any equipment used, or any theft, loss, or damage to owned or rented equipment, all of which should be covered under the Rust policies. 

Some policies also protect producers from copyright infringement claims. For the crew members, which if you've ever watched the ending credits showing the names, titles and the extremely numerous positions and people in a single film production, insurance coverage for these individuals will be from workers compensation or the individual's own health and life insurance policies. These individuals are typically covered as insureds under the liability policy since they are employees of the film production company. The general liability policy covers third party liability, which does not typically protect against liability claims caused by employee accidents while on the job. The medical payments coverage under the CGL would also only apply to third party injuries, not injuries to other employees.

Inland marine film equipment insurance typically covers all film equipment that is used during the filmmaking process. This includes any damage, loss, or theft of owned or rented equipment. It is important to note that equipment insurance only covers film and video production, not specialized shoots like music videos. "Rust's" Entertainment Package covered additional exposures not contemplated in a standard inland marine policy; since it covered sets, props and wardrobes this would likely include the guns used on the set for property damage. If there was third party property damage done during the film shooting, this would have been covered by this policy. For example, if any of the shootings during film-making had damaged the building or other property where the film-making took place. 

Coverage might also be available to cover the loss or damage to contents of the production office, including but not limited to:

  • Furniture
  • Equipment
  • Fixtures
  • Improvements & betterments

Valuable Papers and Records (e.g., written film tape, disc, drum, cell, printed or otherwise inscribed documents and records including books, maps, abstracts, deeds, manuscripts or other magnetic recording or storage media).

While not typically purchased, extra expense coverage might be available from some insurers. This insurance covers delays caused by loss or damage to property or facilities used in connection with the film's production. It would not however cover delays in production due to accidents or injuries of people. 

Errors and omissions insurance protects against claims of unauthorized usage of copyrighted materials, characters, titles, formats, ideas, plots, and various forms of plagiarism. It also protects against unfair competition, invasion of privacy, and defamation. There is no indication that "Rust" carried such insurance based on the Certificate.

"Rust" Liability in the Shooting

Based on what we know as of now, the shooting of the loaded prop gun that lead to the death of cinematographer Halyna Hutchins and the injuries to director Joel Souza was accidental in nature, and Alec Baldwin is reportedly not being charged with a crime. However, since these individuals were employees and not third parties, the CGL will not respond to this accident. Until law enforcement's investigation of the accident yields more details, we cannot answer questions about potential liability and criminal charges. This leaves workers compensation insurance benefits as the sole remedy to these victims and their families at this time.

Workers compensation will pay for accidents arising out of and in the course of employment, which for now seems to be what happened. Therefore Ms. Hutchins husband and son are entitled to funeral expenses, income replacement and benefits to her son until he reaches a designated age.

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