TMA II: Insurance pt 1

Typical/mandated insurance policies + Insurance intro

Factors that influence requirement of purchase and amount of coverage?

Risk/Tolerance

Contract

Government /Law

Union/CBA

Factors that influence the cost of coverage?

Risk

Dollars

Length of Term

External Factors

How do Insurers make money?

By collecting more in premiums than paying out in claims

How to obtain insurance?

Insurer

Broker

Questionaire

What is in a Questionnaire?

Business information

Production information

Important dates

Property value

Capital/Expenses/Profit

Weekly payroll breakdown

Employee breakdown

“Theatrical Package”

-              Commercial General Liability Insurance (CGL)

-            Theatrical Property Insurance (TP)

 

Commercial General Liability Insurance (CGL)

 Injury to 3^rd parties and damage to 3^rd party property

  Why: Protects production, it may be required by contract

  Cost of Coverage: Amount of coverage needed

o   Limit – Maximum:1M per occurrence, Maximum: $2M in aggregate (combined)

 

• Not my employees or anything I own/rent but other people’s property

Theatrical Property Insurance

Property owned and rented by producing company and in custody (either in theatre, storage, etc)

Why: Protects production, may be required by contract

Cost of Coverage: Value of property being covered, higher deductible
may mean lower premium

Umbrella Liability Insurance

-              Coverage: Additional insurance over and above CGL (Secondary coverage)

-              Why: If show requires it, catastrophic if no coverage

-              Cost of Coverage: Multiples of $1,2,5 or 10M

Personal Property Insurance

• AEA Floater (mandated by floater) - extended to entire company

• Covers Personal Property of employees if damages or stolen in theatre

  • No deductible

  • Individual policy limits

• Cost: # of individuals covered

• Backup - will need police report to substantiate claim

Workers Comp

• Coverage: Short term loss of income for individuals who are sick or injured in the course of employment & Medical Expenses

  • Employees, Independent Conrtractors (w/o insurance), Volunteers

• Why: State Mandated

• Cost of Coverage: Estimated Payroll, subject to audit

  • Category of Employee

  • Weekly Payroll

  • # of Weeks

  • Statutory multiplier (% per dollar set by law)

AEA WC add on

AEA provides a supplement that distinguishes extraordinary risk

Injury Report Form v C2 Form v C-11 Form

Injury Report Form - Internal Document to document injury internally

C-2 Form - Reporting the injury to Insurance Company for Medical Attention

C-11 – Workers comp form to report loss of wages

Disability Insurance

Coverage: Employee injury or illness (off-the job)

• a portion of lost wages; no medical expense

• Waiting Period/Max Benefits

• Supplemental Insurance available

Why: State Mandated

Cost of Coverage: # of individuals covered

• Employee Contribution

• M/F breakdown