NEW YORK—TV production companies that had insurance prior to Jan. 24, 2020, are likely to have most of the financial losses experienced because of the coronavirus pandemic covered by insurance companies, according to a report from Pillsbury Law.

According to Pillsbury’s report, the TV industry has already lost nearly $10 billion in TV ad revenue because of the pandemic. In addition, TV production is down by more than 20% in Los Angeles. The overall financial impact, according to Pillsbury, is “staggering.”

However, production companies will be able to soften the blow if they had insurance policies issued prior to Jan. 24. Because the breadth of the pandemic was not known during this time, insurance policies do not include exceptions for COVID-19 as what can be classified as a “business interruption,” which would be eligible for coverage.

This could likely change moving forward, with Pillsbury estimating that future insurance policies could increase their rates (some speculating as high as 25%), as well as beginning to include specific exceptions for COVID-19.

As for getting production started again, Pillsbury highlighted a number of efforts that production companies are putting in place to combat the spread of COVID-19. These include sequestering cast and crew in hotels, taking temperatures of those on set daily, maintaining social distance whenever possible, wearing gloves and mask indoors, staggering lunch and call times, replacing buffet-style lunches with boxed lunches and even replacing the iconic canvas “director’s” chairs with plastic ones, which are easier to clean.

“The bottom line for studios and production companies that purchased insurance coverage before the coronavirus became headline news in January 2020 is that those policies could cover most if not all of the economic damages flowing from the government shutdown of the entertainment industry because of COVID-19,” Pillsbury surmised. “As a result, studios and production companies facing losses because of the industry shutdown, should consult with an experienced insurance recovery attorney to review their policies so they can help coordinate with insurance brokers and carriers and assist with properly crafting of a claim submission in order to optimize coverage under the specific policy or policies at issue.”

For more information, visit Pillsbury Law’s website. 

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NEW YORK—Following the FAA’s approval of drones, or UAS, for commercial use more and more people and companies are taking to the skies with them. Though as Allianz Global Corporate & Speciality (AGCS) indicates in its report, “Rise of the Drones: Managing the Unique Risks Associated with Unmanned Aircraft Systems,” there are benefits that go along with the increase use of drones, but also some new risks.

Top Five UAS Markets

The report says that the FAA predicts that more than 600,000 UAS will be deployed for commercial use by the end of 2016. Utilizing these systems allows for many companies to perform previously menial or dangerous tasks. For example, drones can be used for aerial inspections, which in the broadcast industry could greatly reduce the number of accidents that befall tower workers.

However, with the increased number of drones, which also includes an estimated 1.9 million for recreational use in 2016, mid-air collisions and loss of control are greater risks.

What all this means, according to AGCS’ report, is that more thought and more money may have to be invested in companies’ plans for utilizing UAS. AGCS stresses that consistent standards and regulations are required for safe operation, as well as proper training. “In many locations, there are few or no pilot training and maintenance standards,” said James Van Meter, aviation practice leader at AGCS. “In addition to regulation, education will continue to be key to ensuing safe UAS operations.”

All of this has led to a fast growing drone insurance industry, and according to AGCS, a majority of commercial UAS operators will require at least a $1 million policy to protect against risk exposure. AGCS forecasts that by 2020, the drone insurance industry could be worth more than $500 million in the U.S., and approach $1 billion globally.

To read the full AGCS report, click here.