Most of my clients would like to know how to save money on their production equipment insurance premium. I get where you’re coming from! You already paid a lot of money for your expensive production equipment. Why wouldn’t you want to know if you can cover it without spending a bunch more money?
Does Your Homeowner’s Policy Cover Production Equipment?
One of the most common questions I get on this topic is whether or not it’s possible to cover production equipment under your homeowner’s insurance or renter’s insurance policy. After all, those types of policies cover the items inside your house, like your furniture, television, etc., so why can’t they cover your production equipment?
Unfortunately, the answer is “no.” Your homeowner’s or renter’s insurance policy can not properly cover your production equipment. There are several reasons why.
It’s the Wrong Type of Insurance
Your homeowner’s or renter’s policies are known as “personal insurance policies.” They only cover the items that you own or operate for personal use. This would include homes, apartments, and cars, among others. These policies are NOT meant to cover the things that you use for your business. If you had a vehicle that you rented out to studios, or if you used a grip truck for your productions, then there’s no way that GEICO, Allstate, or any of those other companies would want to insure it. The same goes for your production equipment.
Homeowner’s Insurance Only Cover Items INSIDE Your Home
Even if you are able to find a personal insurance carrier willing to cover your production equipment, your homeowner’s policy only covers equipment permanently located inside your home. It is a homeowners policy, after all. This type of policy does not extend to items used outside of your home. It might cover items used primarily in your home but momentarily taken out. However, that would not apply to your production equipment.
For example, if you had a TV and you took it to your friend’s house, damaging it in transit, then it might be covered by your personal policy. However, that is because you primarily use your TV inside your home. You cannot say the same for your camera or your lights.
Personal Insurance Carriers Don’t Understand the Entertainment Industry
Suppose you do find a personal insurance carrier that is comfortable insuring production equipment. (I’ve never heard of one!) You also have to make them understand the entertainment industry. Very few insurance carriers, even commercial insurance carriers, are comfortable insuring the entertainment industry. The concept of studios or production companies renting your equipment and covering it under their insurance is foreign to them. Also, the idea of you renting from others by putting it under your insurance is just foreign. They understand the concept of you using your own items, but when you start introducing other companies, other insurance policies, and a bunch of rental contracts, it gets way too confusing for them.
You Need Production Equipment Insurance
I understand the desire to save money, but you have to make sure that you are properly insuring yourself at all times. Don’t cut costs by using an insurance company that doesn’t understand your needs. Make sure you have the required production equipment insurance to avoid any future problems.
If you have any questions about this topic or want to know how we can help you save money, give me a call!