Accident Insurance
The Accident Compensation Corporation (ACC) is a Crown entity which administers New Zealand's accident compensation scheme, which provides accident insurance for all New Zealand citizens, residents and temporary visitors to New Zealand. In return people do not have the right to sue for personal injury, other than for exemplary damages and exceptions as per ther 1992 Amendments to the Accident Compensation Act.
These exceptions can be covered under Employer's Liability insurance (see below).
Employer's Liability insurance is not to be confused with Employment Disputes insurance nor with Worker's Compensation, which is sometimes called Employer's Liability in other countries.

Any enquiries should be directed as follows:
Employers: Freephone 0800 222 776
Self-employed: Freephone 0508 426 837 (0508 4COVER)
or
Employers and self-employed: Freefax 0800 222 003
business@acc.co.nz
www.acc.co.nz

Relevant Insurance for Screen Productions
This summary gives the types of insurance generally required by production companies working in New Zealand.
It is important to remember that in many instances people working on a production are not "employees" and these people should carry their own insurances as they cannot rely on a Production’s Public Liability, Employer’s Liability or Statutory Liabilities covers to protect them. The NZ Film and Video Technicians Guild has such a scheme (see Legislation).

Errors and Omissions
Indemnifies the company for claims arising from libel, slander, plagiarism, infringement of copyright, invasion of privacy, incorrect use of formats, ideas and titles. The policy should take effect from the beginning of shooting, or before, and should usually continue for a period of three years. It may be renewed if required.
This cover is usually a requirement of the Distribution Company.

Extra Expense
Indemnifies the production in case of damage to important props, sets or wardrobe that would cause delays and increase the budgeted production costs.

Fidelity Guarantee
Provides cover for the company in case of fraud or embezzlement. In some cases the investor(s) may insist on this insurance.

Miscellaneous Equipment
All risks coverage for camera, sound, electrical and other equipment owned, hired or on loan to the production. An extension here is breakdown cover which must be requested and quoted separately. Film guarantors may insist on this cover.

Money Insurance
Provides cover for monies handled by the company, at business premises, in transit and, if necessary, at employees’ homes.

Motor Insurance
The company should insure all vehicles it owns, but it must give insurers specific details on any ‘action vehicles’ for which cover will be restricted. For hired vehicles, cover is available from the rental company, which usually is not competitive and necessitates separate motor insurance for all hire vehicles and those for which the production company is contractually responsible, eg equipment trucks.
Employees who use their vehicles on the production must ensure that their own policy covers business use. (The production company is very unlikely to provide cover for employees' vehicles.)
Cover arranged with New Zealand insurers is for market value only and does not include cover for the contents/equipment in the vehicles, transformers attached to the back of vehicles, or personal effects. The equipment/transformers are insured under the Film Package "Miscellaneous Equipment" section and the personal effects are not insured but remain the responsibility of the owner.
Motor Insurance on rental vehicles, when arranged independently of the rental company, is subject to various legal precedents which, if applicable to the circumstances of the loss, costs may still be the responsibility of the rental company, despite the fact that the production company has arranged its own insurance. This is well known to both insurers and rental companies and is dealt with between the hirer's insurer and the rental company when a claim is reported.

Negative Insurance
Indemnifies the company against extra costs incurred because of loss of, or damage to, raw stock, exposed film, sound stock and recordings. It should also cover the cost of reshooting scenes lost as a result of faults in stock, camera, processing or editing. This risk has changed in recent times as far as insurers are concerned due to the significant increase in the use of CGI footage in a production and further technology changes such as the use of the Panavision Genesis camera system, or Stargate Virtual Backlot, can reduce risk under this section of cover.

Pre-Production & Cast Insurance (Producer's Indemnity)
Indemnifies the company against costs or loss in case of accident, illness or death of specified key members of the cast and crew during filming and, in some cases, before filming.
Such cover requires a medical on the named cast and crew before full cover is confirmed by the insurer.
"Essential Element" cover is available whereby the decision to abandon a production following incapacity or death of an insured person is made by the insured and not jointly with the insurer. This cover is usually instigated at the request of the financiers/distributors.

Props, Sets & Wardrobe
All risks cover for props, sets and wardrobe owned, hired or on loan to the production.

Employer’s Liability
Indemnifies the production company against claims brought against them by employees following personal injury. This relates to exceptions to the ACC Act created in amendments to the Act in 1992.

Public Liability
Indemnifies the production company against claims made by a third party for damage to property for which the production company may be found liable.
"Punitive and Exemplary Damages" cover is available following an injury.
An individual may sue the production for punitive damages, but not for the injury itself. Liability arising from the use of aircraft and marine craft is excluded (see "Other Insurances" below) and also from the use of motor vehicles, however Third Party Liability cover is provided under the Motor policy (see above).

Statutory Liabilities
The Health & Safety in Employment Act was amended in May 2003 making it illegal to insure for fines and penalties following prosecution under this Act. However most insurer's policies will still provide cover for legal costs in defending any prosecutions under the Act and also cover reparation orders as distinct from fines and penalties.

Third Party Property Damage
Covers loss or damage to, or destruction of property or facilities of others, including loss of use while in its custody, care or control. This policy should work alongside but not duplicate the terms of Public Liability.

Other Insurances
Other insurances may be necessary depending on the needs of the company, requirements of the script and locations, and whether any (or all) of the film is to be shot overseas:
• Aviation and/or liabilities
• Foreign insurances (foreign locations)
• Kidnap and ransom
• Livestock
• Marine and/or liabilities
• Office equipment
• Political risks (contract frustration)
• Union
• Weather insurance
• Guild insurance

Foreign Co-Productions
This requires another approach as many of the above covers can only be accessed through the studio and the large USA-based specialist film insurers with local advice to complement those covers and also to liaise with the studio and/or its broker on these local covers required that are often particular to New Zealand. This service has become a specialisation within the specialist area of film and television production insurance.

Market Comment April 2009 : Film Package premiums
The premium rates, after significant increases in the past 12 months, have reduced dramatically and are significantly below the peaks reached three years ago and are now probably back to the lowest rates for some time.
One important aspect of the premium rating for larger productions is the amount of visual effects component in the budget. This needs to be highlighted to insurers to achieve the most competitive premium.

For further information contact a New Zealand film insurance broker.