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 Thousands of shoots around the
world shut down abruptly in March as the novel
coronavirus spread and governments imposed
lockdowns.
Now as filmmakers try to get back to work they
are finding insurers have largely stopped
providing the COVID-19 coverage they need to
secure financing.
Some insurers are even adding exclusions for
COVID-19 or communicable diseases to existing
policies when cast members get medical exams,
insurance lawyer Kirk Pasich told Reuters.
Without coverage, many producers cannot get the
completion bond, or guarantee, that banks
require to lend to productions.
Until crews can work safely again and insurance
covers COVID-related costs, "there will be less
content of the caliber that we're used to,"
independent film producer Robert Salerno told
Reuters.
Insurers, already reeling from other pandemic
claims, say they cannot offer the coverage
because it is unclear how the pandemic will play
out.
Although some countries have controlled or
eliminated the virus, cases have resurged
elsewhere, including the United States.
(GRAPHIC: https://graphics.reuters.com/CHINA-HEALTH-MAP/0100B59S39E/index.html)
"It is not a risk you can even price," a senior
insurance executive, who was not authorized to
speak publicly, told Reuters.
Only a handful of insurers offer film and TV
policies worldwide. Chubb Ltd and Allianz SE,
two major insurers no longer providing such
coverage, declined to comment.
Media Guarantors Insurance Solutions, which
provides bonding, has seen business fall 80%
during the pandemic, said Chief Executive Fred
Milstein. Producers are watching the new rise in
U.S. COVID-19 cases closely as they consider
rescheduling.
"Everybody's taking a beat to see if the rates
go down again," he said.
While big studios can self-insure, independent
producers, who turn out 70% of new films and
numerous TV shows in the U.S. each year, are
looking for alternatives, said Jean Prewitt,
chief executive of the Independent Film &
Television Alliance.
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 Budgets are up 10% to 30% as
producers add safety measures on set and rewrite
scripts to reduce infection risk, Prewitt said.
Nicolas Chartier, producer of the Academy
Award-winning film The Hurt Locker, is feeling
the effects. His Voltage Pictures production
company planned to film sequels to the romantic
drama "After" in September. Both are on hold
because insurance is unavailable, he told
Reuters. "You cannot get a
completion bond because right now insurance
doesn't cover COVID," he said. "Everybody is
worried about the movie being abandoned."
Projects costing $1 million or less can be
financed with cash, but still face health risks,
especially for plots with romance or fight
scenes.
"So you need to shoot two people in a room, two
people talking outside on a bench," Chartier
said. "Not exactly the most exciting movie."
Independent producers are also looking for
private investors to provide insurance, or
moving to countries that have government backing
for pandemic risk, said Brian O'Shea, chief
executive of The Exchange, a movie sales,
financing and production company. He hopes the
U.S. will provide similar support.
O'Shea sold two movies - one starring Bruce
Willis and the other Olivia Munn - last month at
"virtual Cannes," an online version of the
famous Côte d'Azur film festival.
With $10 million in financial commitments for
each film, he wants to shoot this year, and says
government backing would help.
"Now I need to find a bond company and insurance
or an equity investor that will guarantee the
delivery of the picture given the risks caused
by COVID," he said.
"We're trying to figure it out."
(Reporting by Alwyn Scott; Additional reporting
by Suzanne Barlyn; Editing by Lauren Tara
LaCapra and Diane Craft)
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