Florida Film & Entertainment Advisory Council
Hurricane Task Force Conference Call
July 28, 2006
Joint Film Florida & FFEAC task force
Carol Bressi-Cilona, Chair
Graham Winick
Jeff Peel
John Hilsman
David Goodman
Karen Marshall
Office of Film & Entertainment
Paul Sirmons, State Film Commissioner
Raquel Cisneros, Communications Coordinator
Natalie Recio, Executive Assistant
Susan Simms, LA Liaison
Public
Deborah Wilker
Katie Waters
Judy McDonald
Michelle Marton
Leslie Crespi
John Cummings
Chuck Elderd
David Goodman
Leslie Krensky
Paul Meena
Joe Humphreys
Steve Monroe
Meeting is called to order at 9: 35 a.m.
Paul begins the meeting by stating that many large productions are not coming to film here in Florida because of the substantial rise of premiums and deductibles for production insurance, due to special hurricane coverage necessary. The Florida Film & Entertainment Advisory Council (FFEAC) and Film Florida formed a joint task force to address this issue. The main goal for this task force is to look into possible ways of mitigating the increase, including creating a verifiable hurricane preparedness plan for the industry and seeking other ways to offset the cost of higher insurance to attract the larger films to Florida.
Carol Bressi-Cilona stated that there is currently no specific hurricane insurance package for film and television but what is included in the film insurance package is a specimen of coverages written normally on an all-risk basis including damage caused by fire, water and wind (hurricane). Now carriers are looking to exclude coverage for damage caused by hurricanes or raise the deductibles to the extra expense, miscellaneous equipment and maybe even the negative film/tape, or add deductibles that are extremely high and cover it for exorbitant premium.
The hurricane task force has already learned is that it seems the underwriters might dramatically lower the cost of insurance if a production has a verifiable preparedness plan. They are working to see just what 'verifiable' means, and if we can create a template for the industry, and then provide the producers individual help in creating a personalized hurricane preparedness plan for each production that comes that will hold up to the underwriter's requirements.
The task force is also looking into create a program similar to Visit Florida's Cover Your Event (CYE) hurricane insurance provided to the convention industry. Visit Florida reimburses the expenses of a group that either has its convention cancelled by a named hurricane, or has to run away and come back due to one. The premium on this insurance is at no cost to the organization planning the meeting.
Supplemental Hurricane Insurance Covers:
? Sub limit per insured event of $100,000 if 100-300 room nights; $150,000 if 301-500 room nights; and $200,000 if over 500 room nights. Available during August, September, and October 2005, 2006 and 2007. Minimum of two nights required.
? Loss due to named hurricanes only.
? Coverage will pay for room differential and extra expense of rescheduling event.
? Event must be rescheduled in Florida at same or nearest available venue within 12 months.
? If the event is not rescheduled there is no claim.
? Lost profits are not a covered loss.
? VISIT FLORIDA will pay for all premiums.
? Offered by Marsh Affinity Group, a service of Seabury and Smith out of Chicago.
? Limited availability and subject to insurance carrier approval.
? This offer is good for meetings that are designed for business purposes only.
The task force is also looking at the possibility of making added hurricane premiums a 'qualified Florida expenditure' under our incentive program, allowing them to get a percentage back of their additional premium. That of course would take legislation to do, which makes it ineffective this year.
Paul Sirmons had a meeting with Mark Kaplan and the Lt. Governor about the hurricane insurance issue that is impacting our state's film industry and both of them guided Paul to discuss this issue with Florida's Insurance Commissioner Kevin McCarty. Next week Paul Sirmons has a meeting with Craig Fugate, head of the emergency management about his best ideas for a preparedness plan for our industry.
Karen Marshall states the entertainment industry is not alone with this hurricane issue. Many other businesses in Florida have the same problem. The Florida Insurance Association Agency (FAIA) addresses this issue with every business in Florida. The FAIA works together with the U.S. Congress national disaster team.
It is vital to our industry to define to the public how the film industry works, develop a plan to evacuate the crew cast and secure equipment, find a way to help filmmakers be able to afford hurricane insurance, define how Florida is different from other states (for example Louisiana is under sea level) and inform our legislators.
Task force will meet again in two weeks, August 11, 2006 at 9:30 a.m. The task force will draft up a detailed plan, with a combination of information from the different resources that can be then proposed to senior underwriters and insurers.
Meeting adjourned at 11: 33 a.m.