As we approach the end of the year we like to look back and take stock of the last twelve months of work. Part of that exercise is looking at some of the business decisions we made and working out if they were the right ones.
For production companies one of those big decisions is whether to opt for annual or one off insurance. Sometimes this is a no brainer, but other times it’s not so clear. Here we delve into the pros and cons of both, to help you work out what’s right for you.
Why One-off insurance cover might be best for you:
Flexibility
If you are just starting out or unsure what the next 12 months might bring, it can be tempting to consider a one-off policy. This ensures you only pay for cover when you are working and have the budget to pay for insurance.
Easy to Budget
It can be really tricky for production companies to know how much to charge each client for insurance costs. This is so much simpler if you take out cover on a shoot-by-shoot basis.
But lets look at the other side of the coin.
Why Annual insurance cover might be best for you:
Cheaper Rates
Insurers will generally be able to provide much more competitive rates on annual policies.
Liability Cover
Production policies include liability cover which will not only respond to claims relating to shoots but will also cover claims from any office-based work you carry out. This is particularly important if you have any employees as you are then legally required to have Employer’s Liability insurance in place. An annual production policy will help you to meet this obligation.
Equipment
Similarly to the liability cover, you may need cover for business equipment such as laptops or mobile phones all year round. Cover for your own equipment can be included on a production policy and it will ensure it is protected twenty four hours a day, throughout the year.
Peace of Mind
Taking out an annual policy gives you the peace of mind that any shoot you have coming up will be insured. It can be time consuming to arrange an insurance policy and if you have a last minute job, it may be difficult to arrange a one-off policy. With an annual policy in place, you don’t need to worry about arranging insurance as you will already be covered.
We do strongly encourage all of our clients to take out annual production policies. While we appreciate that the flexibility of one-off cover can appeal to some people, taking out an annual will save you time and money in the long run.
