insurance question

[J. Bernard Vallon]

Hi everyone -
A few years ago, I had a piece of equipment damaged on a job. The job was insured, the damage amounted to $5,000. After all the documentation and proper signatures, the insurance company issued a check - for $3,000. The other $2,000, they said, was to come directly from their client, as they had a $2,000 deductible.

Totally legit, I thought. Production agreed to pay the $2,000 and everything was going to be fine. However, they kept pushing the bill down the road, (this was 4-5 months later), until the production company went bankrupt and sold the film at a loss. I was stuck with the $2,000 bill.

Now I find myself in the same situation and a different insurance company wants to do the same thing.

My question is this: Isn't it the insurance company's legal responsibility to get the deductible from their client, not mine? Can I demand to be paid in full by the insurance company and let them worry about where the deductible comes from?

Thanks!

 

[Harry Clark]

What was specified in the Terms And Conditions attached to your inventory sheet, or alternately in the rental contract?
Cheers,
Harry

 

[Mike P.]

I was gonna say what harry said; whatever is on paper is what you have to go by... If there is no stipulation stating either way (which is highly unlikely), chances are you won't be able to do anything about it unless you're willing to put up the legal fees (which will probably be more than $2000).

My suggestion, look for it in the documentation/T&C and if you can't find it, still try to strong arm the insurance company (may not be successful, but still worth a try.)

Also, if you have personally insured your equipment, then maybe that insurance plan could cover the deductable of the production insurance... I don't see why that wouldn't be legal considering both insurance plans are being paid for by separate people/companies... of course I'm no lawyer.

-Mike

 

[Andrew J.]

You must request the deductible deposit from your client in advance, you hold this deposit in good faith till the equipment lease is completed without LND, this deductible is the sole responsibility of the insured client and limits the liability to that amount as long it does not exceed the claim limit on the insurance or coverages not including or excluded.

It is very normal and difficult to get a damage deposit from the client (good or bad) after you did not take the deposit before the rental, many insurance companies will try to mediate the deductible payment but are not required to if the client is not willing or does not respond.

Another helpful tip is if the client does not wish to give you a deposit you can have the client call the insurance company and request a "zero deductible policy", after they get the quote they surely will happily provide you the deductible.

 

[Pawel Achtel]

And this is exactly why you need Melvin.

:emote_whack:

Seriously though, get a cash deposit equivalent to the excess. If they can't leave $2k cash, then no gear leaves your premises ....not without Melvin, anyway.

 

[Harry Clark]

In practice, I'm pretty sloppy about getting a check for the deductible upfront, although I have lately seen a trend towards higher deductibles with smaller production companies, which gets me more motivated. Anything over $2,500 causes a request by me to have the policy redone with a lower deductible, or a check equal to the deductible that I can hold. I once got a cert from a pretty well-known rental house in New York with a $25,000 (!!!) deductible. At that point, it's like not having insurance at all!
The one time I had equipment stolen (as dramatized in an old thread on the forums here) the insurance adjuster actually advocated on my behalf to have the production company forward a check to me for the deductible. But I suspect that's because of the wording of my rental contract. I have an AC friend who lost a Tango head in a camera truck break-in. The insurance company only offered him depreciated value, not replacement cost value, since he had not had production sign a contract (he was bringing it, with some batteries, as a kit rental) Production actually paid for part of it since they were a stand up company, but you don't want to rely on the kindness of strangers, as it were...
Cheers,
Harry

 

[J. Bernard Vallon]

thanks for the advice everyone. my contract was vague on this matter. im going to add a new clause allowing me to hold the deductible as a deposit, and if i dont that the client pays the deductible to the insurance company directly

 

[Harry Clark]

You may want to pay a lawyer to draft a new contract from scratch, addressing all your concerns, even if the two of you use the existing one as a starting point...
Cheers,
Harry