What it does
CM 00 45 protects the physical record of a production: exposed motion picture film and its sound track, and properly recorded magnetic or video tape (replayed and checked after recording), used in the production shown in the declarations and owned by or in the care of the insured. Coverage is open perils in the United States, its territories, Puerto Rico and Canada, and within 50 miles of these.
Who needs it
Producers of films, television programs, commercials and corporate video who could lose shooting days if footage is destroyed before final prints or masters are made. Coverage for each production lasts until the full quota of prints is made, the insured's interest ends, the policy expires or is cancelled.
Key provisions
- Not covered: cut-outs, unused footage, positive prints, library stock and contraband.
- Exclusions: deterioration, dampness and temperature change; exposure of negative to light; developing chemicals and laboratory work; electric or magnetic erasure (except lightning); dishonest acts and standard exclusions.
- Valuation: the cost of reproducing the lost material plus the reduction in value of undamaged parts of the production, capped at the production's book value; story, music rights, permanent sets, owned wardrobe and props are not part of the value.
- Reports and premium: the insured reports each production's actual cost when coverage ends and premium is adjusted; CM 45 01 converts this to a nonreporting, coinsurance basis.
Quoting and selling notes
Most production today is digital; confirm whether the carrier treats digital media and drives as "properly recorded tape" or needs a manuscript form. Entertainment package policies (cast, negative, equipment, third-party property) are the more common market for producers.
