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1 Risk Management & Insurance Jack M. Buttine John Buttine Inc. New York, NY 10017 1 800 964 4454 [email protected]
| Date post: | 13-Sep-2014 |
| Category: |
Economy & Finance |
| View: | 1,210 times |
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Risk Management & Insurance
Jack M. ButtineJohn Buttine Inc.
New York, NY 100171 800 964 4454
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Risk Management & InsuranceWe will discuss … Property & Liability insurance policies Use of Certificates of Insurance Workers Compensation Issues involving
non-employees Auto Insurance and Agency Auto use
policy Loss control tips & techniques Weather Insurance Production and Special Event Insurance
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Risk Management & Insurance
Types of property & Liability policies Personal property, stock photos,
property of others, computers & hi tech equip, office improvements, etc.
Commercial General Liability (CGL) policies – covers slip & falls arising from office activities, special events & production activities
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Types of policies (continued)
Auto Liability (and Physical damage)
Owned, leased, hired & non-owned
Umbrella Liability
Risk Management & Insurance
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Risk Management & Insurance
Certificates of Insurance – “Certs” Protects you and your client from
claims caused by your vendors or contractors
Should list agency and client as Additional Insureds
Usually no charge to vendor to add agency & client to its liability policy
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Risk Management & Insurance“Certs” (continued) Should have one Cert per project
for each client and one for you Keep Certs on file Use form letter and sample Cert to
standardize Certs from your vendors or contractors
Always check the expiration dates relative to the dates of the work
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Risk Management & Insurance
“Certs” (continued) The process highlights the risk-
reward ratio of some activities
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Risk Management & Insurance The main reasons to obtain Certs
Save your insurance for your mistakes – plus, you may not have coverage!
Reduce costs. Certain types of insurance are rated by attendance, # of days, rental cost or fees paid to others. Certs may provide credits at policy audit time
Protect your loss record. Your insurance is a function of your claim history
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Risk Management & InsuranceWorkers Compensation & non-
employees Every worker must have benefit of a Comp
policy Applies to independent contractors,
freelancers and talent Request Cert from all firms and non-
employees you pay money to. Your Workers Comp and Production Liability
policies are subject to annual audit of agency payroll and amounts paid to contractors
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Risk Management & InsuranceAuto Insurance Policy – what it does … Covers owned, leased, non-owned or rented
cars Provides
liability protection against bodily injury or property damage claims
Physical damage coverage to the agency or rented vehicle
Two basics Insurance ‘follows the car’ – anyone can
drive The agency’s assets are in the trunk
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Risk Management & Insurance
Policies on use of agency autos Business use Comply with laws on cell phone
usage – avoid using cell phone while driving
Agency will check employee’s driving record to determine if employee may use vehicle on agency business
Avoid picking up hitchhikers
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Risk Management & Insurance
Policies on use of agency autos – (continued)
Do not carry more people than you have seat belts
No firearms or hazardous materials Keep your speed safe based on road
and weather conditions Do not drive if incapacitated – tired,
alcohol use, drugs of any type, etc.
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Risk Management & Insurance
Policies on use of agency autos – (continued)
Must use seat belts Do not switch off air bags Do not customize or add non-OEM
equipment to vehicle
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Risk Management & Insurance
Loss Control – Property losses Laptops are most common loss Do regular inventories of laptops Have a Valuable Property Control
policy Check trash – good things end up in
dumpster & require that cartons be flattened
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Risk Management & Insurance
Loss Control – Property losses Know who has keys to agency Set a good example (yes! It is
stealing!) Check references
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Risk Management & Insurance
Commercial Production Weather (Wx) Insurance
Policy is a trade-off: Sure loss of insurance premium v. uncertain loss of one day’s production cost.
Insurance protects your clients bottom line by stabilizing production costs.
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Risk Management & Insurance If you cannot shoot your film or commercial
during the allocated time due to poor weather conditions, it costs money to re-shoot.
Policy pays based on amount of light, number of rain-free hours or amount of rain that falls.
Can be placed as close as 10, or sometimes 7, days before event.
Very flexible design; you pick the limit A “stated value” policy’ i.e. insure all or part of
the shoot – your choice.
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Risk Management & Insurance Rate is function of frequency of
adverse weather at location of shoot. Premium is based on limit or budget. Time to get quote – 12 to 18 hours Independent Wx observer or a wx
satellite reporting system is used to determine degree of adverse weather – rain, fog, wind, too little sun, etc.
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Risk Management & Insurance
Production InsuranceA “package” consisting of ...
Liability Insurance Commercial General Liability & Umbrella Property Damage Liability for rented
locations Property Insurance
Faulty Negative/Extra Expense Rented Equipment, props & sets Rented Automobiles
Automobile Physical Damage & Liability
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Risk Management & Insurance
Production Insurance: two “kinds” Agency as “Named Insured” – when
you buy Agency as “Additional Insured” – when
production company buysWhen production company buys
insurance you benefit from their policy but you have to require details on a Certificate of Insurance
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Risk Management & Insurance
Certificates of Insurance Evidence of another’s insurance Protects Agency and its Clients One “Cert” for Agency and one for
its client Require total of $5mm of liability Must include current policy dates
and name of shoot
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Risk Management & Insurance
Your production policy: “Agency and Partners as Named Insured” ...
Covers Agency and it clients for claims arising from production activities.
Applies when Agency employees are directing
Does not apply to activities in Agency’s office, i.e. concept, editing,…
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Risk Management & Insurance
All insurance is a “pass along” cost Include insurance in your budget. Rates apply to Gross Production Cost
(GPC) - $ per $100 of GPC. One rate is available for all production
package policies – property, liability, and umbrella.
Production Policy is audited at based on GPC.
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Risk Management & Insurance
Special Event Insurance Applies to promotion marketing and
other outside the office activities. A special form of general liability
insurance. Can cover a range of special event
activities – tradeshow show booth, shrink wrapping vehicles, demonstrations or giveaways, etc.
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Risk Management & Insurance Special Events should be “reasonable”
- ??, call No need to pre-approve Policy has exclusions
Pyrotechnics, Aerials, Bodily Injury to participants, Racing, etc.
Agency & its Client should be named as Additional Insureds on contractors’ insurance policy
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Risk Management & Insurance
What are your questions?
