The Clearance Procedures that follow should not be construed as exhaustive and they do not cover all situations that may arise in any particular circumstance or any particular production.
Applicant’s attorney must assure him/herself of the following before first exhibition of the insured work(s):
1. Applicant and its counsel should monitor the Production(s) at all stages, from inception through final
cut, with a view to eliminating all material that could give rise to a claim.
2. The Producer and his/her attorney should read the script prior to commencement of Production in order
to eliminate matter that is defamatory, invades privacy, or is otherwise potentially actionable.
3. A copyright report must be obtained, covering foreign and domestic copyright, as well as all extensions
and renewals thereof, for all literary material contained in the Production(s). If the Applicant is acquiring the
work(s) as completed work (such as a pick-up of a motion picture for distribution), a copyright report must
also be obtained covering the completed work(s).
4. The origins of the work should be ascertained, including the basic idea, sequence of events, and
characters. Have submissions of any similar properties been received by the Applicant or someone closely
involved with the Production(s)? If so, the circumstances as to why the submitting party may not claim theft
or infringement should be described in detail.
5. If the work(s) is in any way based on actual facts, it must be ascertained if the source material is
primary(ie direct interview, court records) and not secondary (ie another copyrighted work). Use of
secondary sources may be permissable, but full details must be provided to Company in an attachment
to the application.
6. Written agreements must exist between the Applicant and the creators, authors, writers, and owners
of all material, including quotations from copyrighted works, used in the insured work(s), authorizing the
Applicant to use the material in the insured work(s).
7. Prior to the title selection, a title report must be obtained. Title Coverage will not be offered unless a
recent title research report has been submitted to and approved by the insurer.
8. Whether the Production is fictional or factual, the names, faces, and likenesses of any recognizable
living persons should not be used unless written releases have been obtained. A release is unnecessary
if person is part of a crowd scene or shown in a fleeting background. Releases can only be dispensed
with if the Applicant provides the insurer with specific reasons, in writing, as to why such releases are
unnecessary and such reasons are accepted by the insurer. The term “living persons” includes thinly
disguised living persons or living persons who are readily identifiable because of identity of other characters
or because of the factual, historical, or geographic setting.
9. All release must give Applicant the rights to edit, modify, add to and/or delete material, juxtapose any
part of the film with any other film, change the sequence of events or of any questions posed and/or
answers given, fictionalize persons or events, and make any other changes in the film that the
Applicant deems appropriate. If a minor, consent has to be legally binding.
Lloyd Kaufman, Chairman of the IFTA Board and founder of Troma, addresses the IFTA
members on Media Consolidation and how it affects independent producers and distributors. Not only is Chairman Kaufman’s message dead on- its very entertaining!
Cast Insurance provides coverage for the disbursement of expenses related to the completion of principal photography in the event that an insured actress, actor, animal or any other declared person cannot begin, continue or complete their duties in relationship to the production, as a result of death, injury or sickness. Insured persons are initially covered for accident only, until such time as they are medically examined and complete a medical questionnaire. The insurance company may provide coverage for illness, if the person qualifies based upon the medical examination and/or questionnaire. Coverage can also be extended to include the kidnapping/ransom of any insured artist or director.
Cast insurance coverage should ideally begin around four weeks prior to the first day of photography. This will ensure that there is enough time for the insured cast members to have their necessary physical exams and to complete all other necessary paperwork
We recently had a client that was confused by these two documents, and wanted to know what their differences were. He was filming in the city of Los Angeles and wanted to know why the City of Los Angeles was asking him for both documents when everyone else was only asking for a Certificate of Insurance naming them as an additional insured.
Generally, ISO endorsements (the industry standard)furnish coverage to the additional insured for liability “arising out of” the named insured’s work, operations, or premises (or some variation on that theme). For example, the March 1997 version (the version currently in use) of the ISO CG 20 10 AI endorsement provides as follows:
“Who Is An Insured (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of your ongoing operations performed for that insured.”
In January 1999, the California Court of Appeal, in Acceptance Ins. Co. v Syufy Enterprises, 81 Cal Rptr 2d 557 (Cal App 1999), further defined “arising out of” as follows:
“…the ordinary broad meaning of “arising out of,” which as noted above has been regularly applied by California courts in insurance cases. This inconsistency leads to tortured results. In Granite Construction, the negligent loading of the named insured’s truck caused no injury (and no liability) until the named insured’s employee began hauling the load, in the course of which the truck overturned. It is difficult to understand how the driver’s claim did not arise out of the hauling operation in the most direct way, unless one assumes that fault is a predicate for coverage. We do not believe such an assumption is justified by the policy term “liability arising out of operations.” [81 Cal Rptr 2d at 562]”
The Certificate of Insurance, on the other hand, is a document that merely gives evidence of the underlying insurance. It does not in any way alter the policy.
What is Negative Film or Video Tape and Faulty Stock?
This provides coverage for the damage and/or destruction of raw film stock, exposed film or videotape. It also covers Faulty Stock, Faulty Cameras and Lenses. The MAXIMUM available coverage is generally 25% of the declared budget.
What is Props, Sets, and Wardrobe Coverage?
This one is pretty obvious. It covers your props, sets, and wardrobe in the event of damage from a covered peril. In general, your limit will be dictated by the prop house you are renting from. Owned items should be covered for replacement cost.
What is Miscellaneous Equipment?
This covers all of the camera, sound and lighting equipment that you rent. The rental house will almost always require that you provide them with a certificate naming them as a Loss Payee and Additional Insured. This is a form of Inland Marine Insurance.
