The risks of the Oscars or nine Oscars go to Fireman's Fund

A saloon shootout, a downtown car chase or hanging off a tall building: Hollywood stars seem able to do all of that and more – with ease and style. Each year, Hollywood movies dazzle audiences around the world. But without the expertise of film insurer Fireman’s Fund, little of it all would be possible.

While the Oscars for the 2012 films  were held on Sunday, February 24, the movies of 2014 and 2015 are already in the making.

“It takes about 18 months for a major production to make it from concept to the theatres,” says Wendy Diaz, Underwriting Director in the Entertainment Division of Fireman’s Fund Insurance Company.  Diaz has specialized in underwriting the unique risks associated with the motion picture industry for twenty five years.  Diaz and  her  colleagues work in the Fireman’s Fund Hollywood office in Los Angeles. They insure more than three quarters of all Hollywood films.

Every day the  Fireman's Fund experts go through film proposals and scripts, read between the lines of the prosposed film budgets, consider the type of film, cast and locations and finally come up with a film insurance price tag that ranges somewhere between 2 and 5 % of a films budget.

“We rarely say “no” to a film,” Diaz explains,” but often we discuss what could be changed to make a project insurable.”

On a movie set, much can go wrong that needs to be protected: an main actor may get ill – stopping production for days. “Sometimes filming costs $ 250.000 per day,” says Diaz. Sets or wardrobes can get lost or destroyed when moving locations, filming equipment can get damaged and finished material can turn out to be faulty, needing to be reshot. A film project also needs third party liability coverage.

The entertainment division at Fireman’s Fund is dedicated to helping producers, studios and also musical artists to achieve the artistic results they seek while ensuring the safety of all productions.

“As Fireman’s Fund celebrates its 150th anniversary this year, we are proud of our rich entertainment history,” said Lori Fouché, president and CEO at Fireman’s Fund. “We were the first to insure a movie with sound, and have the specialized entertainment expertise, capabilities and coverages to best serve and protect our customers for the next 150 years.”

In 2012, some of the following Oscar contenders were insured by Fireman’s Fund: “Django Unchained,” “Les Miserables,” “Argo,” “Beasts of the Southern Wild,” and “Silver Linings Playbook.”  Altogether, these productions won nine Oscars, including "Argo" as Best Picture.  

Diaz  and her colleagues watched  the Oscars, as they do every year – at home on TV. “Then we hope that the winners are among “our” movies,” says Diaz. Over the years, Fireman’s Fund has won “dozens of Oscars,” Diaz says proudly.

 

Film insurance: Example of losses that could occur:

  • During the editing process, the lab accidentally damages footage requiring additional expense to do a reshoot or correct the damage.
  • The Production Company has built a special set, such as a western town, that is destroyed by fire.
  • The Production Company is filming on the water, and a camera is dropped overboard.
  • The Production Company is filming in a home, and scratches all the homeowner’s expensive hard wood floors.
  • A special effect that is being shot in a warehouse goes awry, causing damage to the facility.  The facility is now unusable, so the Production Company must move to a new location, causing extra expenses.
  • The main actor gets ill and production must be interrupted. Everyone is on standby for days, causing bills to run higher than expected.
The entertainment division at Fireman’s Fund is dedicated to helping producers, studios and also musical artists to achieve the artistic results they seek while ensuring the safety of all productions (Photo: Joe Seer / Shutterstock.com).
The entertainment division at Fireman’s Fund is dedicated to helping producers, studios and also musical artists to achieve the artistic results they seek while ensuring the safety of all productions (Photo: Joe Seer / Shutterstock.com).

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Katerina Piro
Allianz SE
Phone +49.89.3800-16048
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