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What should I do about Insurance?
Hi all I have a very serious question that I need some input on. I have a friend that asked me if they could use my business insurance, they are asking to use my insurance because they don’t have any insurance and they don’t have a company set-up yet and I do. The facility that the event will be held at is asking that insurance be used by any person that shoots there. I just wanted to get an outside opinion. I didn’t want anything to happen at the event or anything else, and tarnish our friendship, but I do want to help them out. So what do you think? Should I do this favor for them or not?
Thanks for your Thoughts… -
6 Replies
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I’d be very careful with this. Even though it is “insurance,” claims could be denied if it were established that you were extending some kind of insurance by proxy. You would be MUCH better off to take the job through your company and hire your friend to do the work. Want to be a nice guy? Nobody says that you can’t pay him all that the job earns and keep nothing for yourself. You just need the company taking the risk (ie.-you) to be the entity insured. (My two cents. Be interested in what others have to say.)
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Nick’s absolutely right… funnel the job through your company so that your company is the one of record, the one that bills the job, and the one that gets paid. Then sub it out to your friend to do the heavy lifting (although you might want to maintain SOME kind of presence at the event, even if it is just to show up and say “Hi, everything ok?”). You can pay your friend what you like… all of it, or most of it (maybe take a little bit off the top for your trouble). You do need to make sure that your insurance covers any employees or subcontractors. It might, it might not.
You can’t “loan” your insurance to someone. You might be able to do that to satisfy the client, but in the unlikely and unfortunate event there was an incident you/he couldn’t make a claim. Well, you could, but only if you like hearing the term “insurance fraud” thrown about.
T2
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Todd Terry
Creative Director
Fantastic Plastic Entertainment, Inc.
fantasticplastic.com
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Hey Mark,
I’m with the other guys on this, “lending” your insurance out is only going to end in tears and potentially put you in jail.
I’ve just been through getting insurance for my production business and it was not an easy process. But I would not have gone on location without it.
In the UK we have 1 day insurance offers for smaller productions starting from £140/Day.
Some hire companies will also offer it on their kit – but this doesn’t cover employees/contractors and public liability.
Your alternative is that your friend hires you to do the production – they still keep the client contact and you won’t violate your insurance. You could also hire your friend and do the job through your business.
But you do have to ask yourself; if your friend can’t afford the insurance, are they in reality undercutting yours and other professional companies prices? And do you want to be instrumental in this unfair competition practice?
All the Best
Mads@madsvid, London, UK
Check out my other hangouts:
Twitter: @madsvid
https://mads-thinkingoutloud.blogspot.co.uk -
The venue could also require “proof of insurance” which would mean his name would have to be on the paperwork. So they may not let that fly anyway.
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Thank you guys for your input, this was very helpful I believe I know what I will do with this situation. Once again thank you so much.
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