CINE Articles

Safeguarding Your Production Equipment

Chubb

By Amy E. Sanz
Senior Property Claims Examiner
The Chubb Group of Insurance Companies
February 2009

The opinions expressed in this article are not necessarily those of CINE and do not constitute legal advice.

Production equipment - often small, portable and highly valuable - is especially lucrative and easy to steal. In this struggling economy, filmmakers and production houses should anticipate a rise in theft attempts, and take extra measures to protect their assets and personal worth.

Unattended Equipment
Equipment left unattended in vehicles accounts for a large portion of reported losses. Insurance companies report a high number of theft incidents in the following public areas:

  • parking garages
  • outdoor lots
  • city streets
  • residential areas (homes of production members)

As a rule of thumb, equipment should never be left in vehicles, but if this is unavoidable, follow the "3 Ps":

  • Plan on using a vehicle with a security system
  • Park within eyesight of the vehicle
  • Pay attention - minimize the time the car is left unattended

On Set
Production locations and sets also present numerous crime risks. Dozens of freelancers and staff, as well as those who could gain unapproved set access, can easily walk away with high-definition cameras, specialized lenses and post-production hardware. Missing even a few pieces of high-end gear could quickly cost upwards of $200K and result in even costlier production delays. It is important to hire security who can manage, guard, and account for production equipment daily.

Rental Tips
Rental houses are the key providers of film production equipment. It is in the filmmaker's interest to work with an experienced rental house that knows how to protect their equipment. The equipment will be more likely to be well maintained and the likelihood of misunderstandings in the rental and return process will be reduced. Many of the top-caliber rental houses also have top-notch security methods. Expect and welcome the following safeguards when renting from these houses:

  • Security cameras in all areas they conduct business
  • Identity verification (driver's license, passport, etc.)
  • Certificate of insurance required
  • Photograph taken of renters
  • Payment other than cash

When renting gear, don't assume the rental house is liable. Upon leaving a rental house's premises or signing for a shipment, equipment becomes the renter's responsibility. Take heed of your insurance and consider the following factors:

  • Understand your exposures and how your insurance responds to them and helps protect your business and financial assets.
  • Purchase insurance that insures equipment on a replacement cost basis so that lost gear will be replaced with the comparable equipment.
  • Ensure your policies have sufficient limits relative to the monetary value of the equipment.

Filmmakers and production companies beware; your upcoming project could be somebody's next target. Take proper measures to protect your equipment, and mitigate against the significant financial exposures you face.

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