Lights...Camera...Insurance? Oscar Hopefuls Made Possible With Backing From Insurance.

Entertainment & Business Editors

LOS ANGELES--(ENTERTAINMENT WIRE)--March 22, 2000

Behind all the glitz and glamour of this year's Academy Award-nominated films is some crafty underwriting. With film budgets multiplying each year, insurance is now a standard component of the movie-making process.

The costs of movie-making can reach more than $100,000 a day. Even the largest of the major Hollywood studios cannot afford to lose a star cast member or delay shooting due to bad weather. This is where insurance comes in.

There are four basic film insurance products:

    --  Cast Insurance covers any additional costs that can arise if a
        production loses a cast member, director or any personnel. The
        largest claims that have been paid out have been cast claims.
        For example, in March of 1994, $14.5 million went to the
        producers of "Wagons East" when actor John Candy died of heart
        failure with 20 percent of production remaining. Also, in
        1993, $5.7 million was awarded to the producers of two films
        that were to star River Phoenix after he died of a drug
        overdose outside a Los Angeles nightclub.

    --  Errors and omissions policies protect production companies
        from lawsuits involving violation of personal rights, libel or
        slander. These policies usually require filmmakers to consult
        with attorneys prior to a film's release to check for anything
        that might spur a lawsuit.

    --  General production insurance packages provide the standard
        insurance needed by any business, such as worker's
        compensation, general liability, and commercial auto
        insurance. It also includes costs for delays and re-shooting
        due to inclement weather, equipment failure and set damage.

    --  Completion bonding simply guarantees that a film will be
        finished. Without completion bonds, some of the Academy Award
        nominated independent films, such as "Cider House Rules,"
        "Boys Don't Cry," and "Straight Story" might never have made
        it that far. Without the backing of a major studio,
        independent producers need the guarantee that they will have
        the financial means to complete a film if some unforeseen
        event should hinder production.

The Insurance Information Network of California is a non-profit, non-lobbying media relations organization supporting the property/casualty insurance industry. IINC has spokespeople in both Northern and Southern California to discuss this and other insurance issues. To schedule an interview call media relations at 800/397-1679.