Working on a film- or television production is never predictable. So it is important to consider the risks that production entails. Expensive materials are used that could get damaged, or actors could suddenly be indisposed. This can easily lead to financial problems. In order to prevent this, it is important to make sure sufficient coverage is in place. Klap No Risk can help you with this.
Klap No Risk is the only party in the Netherlands that is able to provide film production companies with a completion bond. We have also set up a cash flow facility for production companies that are temporarily short on money.
Insurance for film productions
This policy covers all costs that are made while producing a film or a television programme. This includes everything that you paid for beforehand, as well as everything you still have to pay for. Examples of production costs are the acquiring or renting of audiovisual- and lighting equipment, set decoration, costumes, locations and cast and crew. If filming is interrupted, delayed or cancelled, the production costs will be paid out.
Cash flow facility
During the process of producing a film, film production companies often run into cash flow problems, because funding is paid out in tranches, while right from the beginning of the production process a lot of costs have to be made. To help film production companies to avoid a cash flow problem, Klap No Risk cooperates with On Set Finance. On Set Finance offers cash flow facilities to film productions with a budget over 2 million euros.
Errors & Omissions
The content of a film or television programme can lead to legal claims. Your company can be accused of copyright infringement, libel, invasion of privacy, plagiarism or of violation of intellectual property rights. An E&O-insurance policy protects your company against claims like this.
A completion bond is a guarantee agreement that a film production company signs to guarantee to the financers that the film will be completed and delivered. If the film cannot be completed, the sponsors will be reimbursed.
Commissioned by Klap No Risk and the completion guarantor company, a ‘controller’ will monitor the progress of the film production and he will step in and interfere if necessary. If the film production cannot be completed, the completion guarantor company will take over all the rights and obligations of the production. This way the financers can be certain that they will not lose the money they invested.
(The completion bond does not guarantee that the envisioned earnings will be obtained, this is a risk the financers take.)