Film, TV productions hurt by lack of COVID insurance

As business continues to pick up amid a pandemic slowdown, TV and film studios still are faced with millions in costs to comply with COVID-19 safety protocols because some insurers are denying pandemic coverage.

Anamay Carmel, an attorney with Pasich LLP who represents insured clients in coverage disputes involving production insurance policies, said insurers are claiming those provisions are now the normal cost of doing business and should be paid for by the TV and film companies.

“Insurers are refusing to acknowledge coverage even though policies that were in place last year should cover anything extra that occurred as a result of the pandemic, such as interruptions, delays and added safety measures,” she said.

Big-budget productions likely will be able to absorb the additional expenses, she said, but tacking $1 million to $2 million onto a smaller production will have a heavy impact.

“We may never see many of these projects get off the ground if insurers wrongfully deny coverage,” Carmel said. “Interpreting this as a ‘normal’ business cost is too much of a stretch.”

Film and TV studios have had to adapt to survive the impact of the COVID-19 pandemic. Sets have become regimented by new safety protocols, including social distancing, a requirement to wear masks, COVID-19 testing and temperature taking.

Some insurers revamped their pandemic-related policies as COVID-19 wore on.

“We don’t offer COVID insurance,” said Christina Lam, a representative with Athos Insurance Services LLC, a Pasadena-based broker that provides coverage to TV and film companies through a variety of carriers. “Our policies are meant to cover unexpected and unforseen events, but most have an exclusion for COVID.”

When the pandemic first kicked in, the carriers were of