Insurers have not abandoned the film and TV production industry, contrary to reports in the mainstream media, according to a broker with a significant portfolio in the sector.

Quotes and policies for Film Package insurance are still being provided but there are exclusions applied for COVID-19 and other communicable diseases at present, Galvaniize Insurance said.

"I can only speak about the Australian insurers that I regularly use," Founding Director David McEwan told insuranceNEWS.com.au today.

"They are still providing Film Package insurance quotes and policies. However, they will not provide any cover for COVID-19 or communicable diseases at present.

“Some creative people are making things happen via the documentary and animation areas of production. They have minimal risk to COVID-19 and remote working capabilities thanks to technology.”

insuranceNEWS.com.au understands that Allianz in late February began to apply a communicable disease-related exclusion for Film Package insurance, weeks before the World Health Organisation called the coronavirus outbreak a pandemic. SURA made a similar move after the pandemic was declared.

For policies that were in place pre-pandemic, whether or not the cover will indemnify a virus-related claim will depend on individual circumstances.

“The circumstances of each insured must be assessed and then you decide which sections may or may not apply,” Mr McEwan said.

"Has the insured bought all the relevant sections of cover? How did COVID-19 affect the production? Did a cast member or crew member contract COVID-19? Did the government rules affect the production in some way? Are the insurers considering the pandemic as an imminent peril?"

He says many of his clients have lodged claims for losses caused by the virus disruption.

“We are still working with the insurers and each insured. Not every claim is straightforward and each insured has a different situation. So establishing indemnity for some insureds is a challenge and we will persist,” Mr McEwan said.

Strict social distancing measures to suppress the community spread of the coronavirus has disrupted the film and TV industry, like many other commercial activities.

According to Jungle Entertainment CEO Jason Burrows, insurance is a vital cog that keeps the film and TV industry moving.

“Production companies always need insurance to cover key cast and crew from getting ill,” he told insuranceNEWS.com.au today. “Even a temporary shutdown will usually cost a drama production over $500,000 and this is not a risk that production companies, which are SMEs, can afford to take on.

“And broadcasters, screen bodies and distributors would not fund a drama production without this risk being covered.”

Mr Burrows confirmed insurance is available for new projects but there are exclusions for COVID-19. He backs his industry’s calls for the Federal Government to step in as insurer of last resort.

“As part of the proposal, productions would offer up an excess which would cover lower claims,” he said. “The Federal Government can provide cover with no cash upfront and minimal risk.”

Minister for Communications, Cyber Safety and the Arts Paul Fletcher has asked his department for advice on the insurance concerns raised by the entertainment industry, his spokesman told insuranceNEWS.com.au.