Equipment & Production Insurance

A service of United Agencies, Inc

Myth & Fact: Insurance for the SAG New Media Contract

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Revised November 2025

Myth: I don’t need insurance to abide by the “SAG New Media” contract.

Fact: You DEFINITELY need coverage for General Liability and Workers Comp to abide by the “SAG New Media” contract.

film production movie setRecently, people are asking about the SAG New Media arrangement, which you can research on their website at www.sagaftra.org. There seems to be a question about whether or not you need insurance to abide by the arrangement.

Many people believe that since the production falls under the “new media” definition, this means that SAG knows the production is small and made for online distribution. Therefore, they think that they shouldn’t have to secure coverage for their film production because of its size. This is not the case. SAG requires at least $1,000,000 of General Liability and $1,000,000 of Workers Comp coverage whenever you are using SAG actors.

SAG New Media Agreement Defined

The SAG-AFTRA New Media Agreement is a contract for original and derivative entertainment productions made for initial release on digital platforms like the internet and mobile devices, covering original episodic programming and commercials. It outlines terms for performer compensation, benefits, and other production standards for work created specifically for these “new media” outlets, and includes specific agreements for different types of projects, such as the new SAG-AFTRA Verticals Agreement for serialized content made for mobile screens. 

Key aspects of the New Media Agreement
  • Applicability: It covers projects originally intended for online distribution, including episodic series and commercials.
  • Exclusions: The agreement does not cover content with an initial release intended for theaters, television, or video games (which fall under the Interactive Agreement).
  • New additions: The contract is continually updated to reflect the evolving media landscape. For instance, the Verticals Agreement was created for the specific needs of short-form, mobile-first content like serialized micro-dramas.
  • Specifics: The agreement details compensation, usage payments, and requirements for pension and health plan contributions for performers.
  • Producer benefits: Signing the New Media Agreement allows producers to access SAG-AFTRA’s talent pool, with streamlined processes for becoming a signatory. 

The SAG New Media Contract Requires Insurance

It doesn’t matter if you only plan to do a 30-second video for a Facebook ad or a short YouTube clip that you hope goes viral. If you use a SAG actor, then they must have coverage through a Workers Comp policy. This covers the actor if they injure themselves. General Liability insurance covers injuries or property damage to third parties caused by the actor.

For proper coverage, you need both Workers’ Comp and General Liability insurance. If you don’t have Workers Comp coverage for them, you could get in trouble with the government for employing people without insurance. You also might get the actor in trouble with SAG for working on an uninsured production. The same goes for General Liability. If an actor accidentally hurts a third party or damages third party property, you want to make sure they aren’t held personally responsible.

If you are a producer looking to hire a SAG actor, or if you are a SAG actor and need proper coverage, call me.  You need to make sure you are abiding by these new rules. Either phone me at 818-295-2266, or you can contact SAG directly, using the contact info on their website.

 

Myth & Fact: Third Party Property Damage & General Liability

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movie camera used during film productionMyth: General Liability Insurance covers damage done to my locations during filming.

 

Fact: Damage to your locations is NOT covered by general liability insurance. Instead, it falls under Third Party Property Damage.

Over the years, I have heard a lot of statements from customers like this one:

“I’m really only concerned about damage to my locations. So, can you write up a General Liability policy? That way they will be covered.”

I always have to break the news to them that General Liability does NOT cover damage to their locations. What they really need is Third Party Property Damage Insurance.

What is Third Party Property Damage Insurance?

Third Party Property Damage covers damage done to locations over which you have the care, custody, or control. For example, if somebody is letting you film in their house, restaurant, or studio, they have given care over to you. Once you have custody and control, you assume the responsibility for any damage.

From my previous blog on General Liability Insurance, you know that it covers damage to third party sites. The difference is subtle, but once you take control of a location, it’s no longer a third party. The building next door to your location would be a third party and covered by General Liability. The locations upstairs or downstairs from you would also be covered by General Liability. However, the actual location where you are filming is NOT covered by General Liability.

Why do locations ask for General Liability if it doesn’t cover damage to their property?

Well, there’s a couple reasons for that.

First, they ask for it because they need coverage for any General Liability claims brought to them because of your filming operations. If somebody is walking by their location and they tripped and fell on an extension cord, they could sue the location themselves for allowing you to film there. Your General Liability coverage would extend to them in this case. If you set up a light outside their window and it falls backward and damages the building next door, that building owner might go after your location owner for damages. It is very important that you provide General Liability coverage for your location.

The second reason that locations ask for General Liability is misinformation. They ask for it because they think it covers their property. The person who owns the home where you’re filming is obviously not an insurance expert, so they just ask for the most popular type of insurance coverage. Most of them mistakenly think that it’s what they need to cover damage to their house.

It’s up to you as the carrier of the insurance to be clear that the policy you’re providing does not cover damage to their location. They might ask that you add the coverage, which you can. The cost is actually very small. Once you do, sit back and rest easy knowing you own the proper coverage.

Call me and let me show you how you can add Third Party Property Damage to your General Liability policy.

Luke Gelineau Insured Productions explains third party property damage

Luke Gelineau

Myth & Fact: Insurance Certificates and Rental Contracts

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Myth: If I’m renting my equipment to someone, it’s OK to just get a certificate. I don’t need to get signed rental contracts.movie cameras

Fact: If you rent your equipment, you must require the renter to give you a certificate AND to sign your rental contract.

The type of document that an insurance agency issues more than anything else is a certificate. Our agency outputs tens of thousands of them per month, and the reason for that is simple: Certificates prove to other people that you have insurance. Let’s face it: Nobody would buy insurance from us just because they want to. The main reason that many people purchase insurance is that somebody requires it of them. If you need production insurance, the likely reason is that you are renting equipment, pulling a film permit, or securing a location. The most common reason that clients ask me for certificates is for equipment rental, but that’s where things get complicated. You also need rental contracts.

The Problem with Insurance Certificates

You see, a certificate doesn’t DO anything for the person to whom you give it. At the top of every standard ACORD certificate issued in this country, it states in big, bold letters:

“This certificate is issued as a matter of information only and confers no rights upon the certificate holder.”

The document goes on to state that it does not extend or alter coverage in any way and that it does not constitute a contract between the holder and the insured. Many rental houses do not understand this. They think that if they get a certificate that names them additional insured and loss payee, then they are completely covered. However, if this is all they have, then the insurance company can easily refer to the words at the top of the certificate and point out to them that there is no contract between them and the renter. It’s just a piece of paper that tells somebody that they have insurance coverage, and that’s it.

The Solution is a Certificate AND Rental Contracts

So what do you do? You require that your renter also signs a rental contract. Most rental houses already have rental contracts, but they don’t always require the person renting to sign them. If you are renting out to anybody, you must demand that they sign the contract and give them the certificate. That then references the contract, and the contract refers to the cert, so once you have them together, then you have a properly executed legal agreement. If something happens, you can go straight to the insurance company listed on the certificate and start the claims process.

If you are a renter with questions of how to get proper certificates, or if you are a rental house with questions of what else you might need to request from your renter, feel free to contact us at Equipment and Production Insurance and we can help you out!

 

Myth & Fact: Short-Term Production Insurance

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Myth: Short-term production insurance policies are either invalid or offer insufficient coverage.

Fact: Short-term production insurance policies are the same as any annual policy, only for a shorter duration.

The product we tend to sell more of than any other is the short-term production policy. This type of policy is fast, inexpensive, and offers great coverage for short-term shoots where a client needs insurance. However, I answer many concerns held by rental houses who fear deficiencies in the short-term policies they are given. More often than not, they have problems with the limits of coverage provided, or they are concerned that the policy itself is cut-rate and illegitimate.

These are two valid concerns because there are many cheap and cut-rate short-term policies out there. However, if you are a rental house, you can protect yourself. Just make sure you double check these three things anytime you are handed a short-term insurance certificate.

#1 – Check the Dates on the Insurance Certificate

The biggest and most obvious difference between an annual policy and a short-term policy is the coverage period. Short-Term policies can run for as little as one day, so you need to make sure your renter is adequately covered during the entire rental period.

Not only do you need to check the dates, you also should consider the timing. If they hand you a certificate that says they are covered from 2/5/2020 until 2/15/2020, that means they are covered from 12:01 AM on February 5th until 12:01 AM on February 15th. In other words, they are NOT covered on the 15th. Just because that date is shown on the certificate, it does NOT mean that you have coverage on that date.

You need to make sure that every rental is picked up and returned within the dates shown on the certificate. Even if they tell you that they don’t plan to film with your equipment until the policy starts, you need to insist that they add the proper dates of coverage.

#2 – Check the Coverage Amounts

There is no reason that a short-term policy cannot cover everything you require. You can demand the same coverages for General Liability, Rented Equipment, Auto, etc. that you do from any client with an annual policy. If you tell your renter they need to add a missing coverage, and they try to tell you that they can’t – they are either lying or they have a bad policy.

Every legitimate short-term insurance policy can include all the required coverages without any issues. It may cost the client extra money, but that’s the price they have to pay for making high-end rentals.

#3 – Contact the Agent that Issued the Short-Term Production Insurance

There are some short-term policies out there that do not come from an agent. That is a problem. If you have questions about the coverage, or if you wish to file a claim, you won’t be able to call anyone. Make sure that the certs you receive have a phone number for the issuing agent. That way you can contact them to verify coverage limits or deductible amounts.

The last thing you want to find out when you have a claim is that your renter bought a two-bit policy from an online-only insurance provider. What will you do when you need answers to your claim questions or inquiries?

There are, of course, many other things you should be doing to clear your renters before you give your equipment to them. However, these three steps are a great start to making sure that your equipment and your business are properly covered.

Feel free to call us with any questions about purchasing a short-term policy, or renting to people who carry them.

 

Myth & Fact: Illegal Conversion Claims and Theft

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green screen used in filming productionsMyth:  If somebody rents equipment from me, and never returns it, my insurance company considers that to be “theft.”

Fact:  Equipment rented and not returned is considered “Illegal Conversion” and may not be covered by your rental house policy.

Some time ago, I attended the Theft Summit, hosted by PERG (Production Equipment Rental Group) in Burbank. Attending with me were detectives from law enforcement agencies such as LAPD, Burbank PD, and NYPD, and representatives from many major Los Angeles area rental houses. We all came together to discuss one major issue: Thefts in the entertainment industry.

Theft is a particularly large issue in the entertainment equipment industry. Much of the equipment is valuable and small, which makes it easy to transport and hide. Consequently, a large amount of entertainment equipment is stolen each year. However, 23% of the “thefts” that occur in the industry are not actually “thefts” at all. They are “Illegal Conversion” claims.

What is the Difference Between Illegal Conversion and Theft?

The difference between “Illegal Conversion” and “theft” lies simply in how the thief obtained the equipment in the first place.

For instance, a rental house knowingly gives their equipment to potential rental customers. If the customer simply does not return the rented items, then it becomes an illegal conversion claim.

In a theft situation, burglars or robbers take items without permission. Insurance policies cover theft because negligence does not exist, but policies exclude illegal conversion claims because you freely gave the equipment to the customer at the time of rental. None of it was ever taken against your will.

Protecting Yourself Against Illegal Conversion

So what can you do as a rental house? Well, PERG has a list of questions and requirements you should demand of all potential renters. You can see where they addressed this on their website at http://esta.org/PERG/index.html.

Call the agent listed on the renter’s certificate to verify their insurance is valid. I get calls all the time from rental houses making sure their customer’s insurance is valid and asking other questions they may have about their renter.

If you work at a rental house, it is your livelihood. Don’t be shy about asking questions of the renter and their agent. More importantly, you should ask your agent to add Illegal Conversion coverage to your policy.

If you want to refer your renters to a trusted insurance broker for their rental insurance, or if you want me to get you a quote for your rental house that includes Illegal Conversion, feel free to give me a call!

Luke Gelineau United Agencies explains illegal conversion and theft

Luke Gelineau